The latest CoreLogic Million-Dollar Markets report has revealed that Australian suburbs with median house or unit values of $1 million or more have reached an all-time high.
In August, 29.3% of the 4,772 suburbs analysed had a median value above the million-dollar mark, a significant jump from 21.7% in January 2023 when the market was at a low following rate increases.
This is the highest percentage seen since April 2022, when 26.9% of suburbs reached seven-figure medians.
“At the onset of COVID, just 14.3% of house and unit markets had a median value at or above the $1 million mark,” CoreLogic economist Kaytlin Ezzy (pictured above) said.
“With almost 30% of suburbs now posting a seven-figure median, the increase is a natural consequence of rising values and worsening affordability.”
Sydney, Australia’s most expensive capital, recorded the highest rise in million-dollar suburbs, adding 46 markets over the year.
Brisbane matched this net increase, driven by a 15% rise in dwelling values.
Ezzy highlighted Brisbane’s challenges: “The positive flow of interstate migration, coupled with a continued undersupply of advertised listings as well as newly built housing stock, has seen Brisbane values rise 65.1% since the onset of COVID.”
Perth added 35 new million-dollar markets, showing strong growth but still lagging behind Sydney and Brisbane. Despite having the highest annual rise in dwelling values, Perth’s lower starting prices meant fewer suburbs joined the million-dollar club.
Nationally, growth rates have cooled from 2% in the three months to April to 1.3% in the three months to August. However, Ezzy believes the number of million-dollar suburbs has not peaked.
“It’s likely we’ll see a number of these markets cross the million-dollar threshold within the next few months,” with 24 suburbs currently just shy of the mark, she said.
Rising values mean buyers need higher incomes to manage repayments. For a $1 million home with a typical mortgage, households now require an income close to $200,000 to keep payments below 30% of earnings, up from $125,000 before the first rate hike.
Sydney dominates with 555 suburbs, including 448 houses and 107 units, now in the million-dollar bracket, representing 78.3% of house markets.
Notably, Regional NSW also added 22 million-dollar markets, concentrated in areas like the Illawarra and Richmond Tweed.
Melbourne recorded a modest net increase in million-dollar markets, while regional Victoria saw a decline, reflecting an oversupply and lower demand pressures.
Brisbane saw the largest net increase, with 46 new million-dollar house markets, and regional Queensland added 30 markets, particularly in the Gold Coast and Sunshine Coast.
Adelaide now has 104 suburbs with million-dollar values, while Perth’s rapid value growth added 35 new markets, although regional WA saw limited additions.
Hobart’s million-dollar market remained stable despite a value decline, and none of the markets in Darwin or regional NT crossed the million-dollar mark. Canberra saw a slight increase, with six suburbs rejoining the club.
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