Australia’s million-dollar club has exploded, with the number of suburbs carrying a seven-figure median dwelling value increasing by nearly a third in the past 12 months.
Analysis from CoreLogic has revealed that as of the end of June 2016, 613 Australian suburbs boasted a million dollar price tag, up a significant 29% from June 2015.
Unsurprisingly, the majority of suburbs in the million dollar club are present due to their house values, with 570 suburbs home to a median house value of at least $1m.
CoreLogic research analyst Cameron Kusher said the number of suburbs in the million dollar club has more than doubled in the past three years and is likely to continue to grow.
“The number of suburbs has increased by 125% over the past 3 years,” Kusher said.
“While overall housing demand may be slowing a little, we expect that with historic low interest rates, demand for premium housing is set to remain buoyant over the coming year. Subsequently we would expect in 12 months’ time even more suburbs to have a median value of at least $1 million,” he said.
Of the suburbs currently boasting a median dwelling value of $1m or more, 68.2% are located in New South Wales, followed by Victoria with 16.6% of the suburbs.
The remaining 15.2% of the million dollar suburbs are split between all other jurisdictions, except for Tasmania – the only state or territory without a suburb that has a median value of $1m or more.
“The data highlights the bracket creep that has occurred over the housing growth cycle, and how housing affordability in NSW (Sydney) and to a lesser degree Vic (Melbourne) has deteriorated. An increasing number of suburbs in these two states now have a median value of at least $1 million,” Kusher said.
Given more than half of the suburbs in the million-dollar club are located in NSW, it’s no surprise that NSW dominates the list of the most expensive suburbs, with all but two of the nation’s 25 most expensive located in NSW and more specifically, Sydney.
Darling Point, with a median house price of $6,420,354 is the nation’s most expensive suburb, followed by Point Piper
, also in Sydney, where the median house price is $6,030,272.
The top five is rounded out by Sydney suburbs and their house prices, with Centennial Park ($5,903,531) in third place followed by Bellevue Hill ($4,524,799) and Cremorne Point ($ 4,510,566).
Melbourne’s Toorak and its median house price of $3,756,061 is the first non-NSW entrant on the top-25 list at number nine, with Perth
’s Peppermint Grove
the other non-NSW entrant at number 17 with a median house price of $3,296,840.
Sydney's Dawes Point is the only suburb in the top-25 on the back of its unit value, coming in at number 23 with a median unit value of $2,985,091.
The most expensive Queensland suburb is Tenerife with a median house value of $1,644,643, while South Australia’s most expensive suburb is Springfield with a median house value of $1,737,499.
The most expensive Northern Territory suburb is Larrakeyah
with a median house value of $1,196,987, while the ACT’s most expensive suburb is Forrest with a median house value of $2,067,813.
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