Million-dollar suburbs becoming the norm
The number of million-dollar suburbs in Australia has skyrocketed 176% in the past five years.
New figures from CoreLogic have showed the number of suburbs with a median dwelling price of more than $1 million has grown from 275 nationwide in 2011 to 760 by the end of 2016. The number of suburbs with $1 million median unit prices increased by a staggering 479%, while suburbs with a $1 million median house price grew 160%.
“There was a time in which having a dwelling worth $1 million or more meant that the property was exclusive and rare. Today dwellings with a $1 million valuation are becoming much more common,” CoreLogic researcher Cameron Kusher said.
New South Wales accounted for 70.3% of the suburbs nationally with a median value of at least $1 million, while Victoria accounted for 16.7%. In Sydney, 497 suburbs had median dwelling values of at least $1 million, while 125 Melbourne suburbs hit the $1 million mark.
The number of suburbs with a median value above $2 million is also growing, Kusher said.
“At the end of 2011, 39 suburbs nationally had a median value of at least $2 million. By the end of 2016, this figure had risen to 136 suburbs nationally, an increase of 249% over five years. At the end of 2011, 30 of the 39 suburbs were located in Sydney and by the end of 2016, 115 of the 136 suburbs were located in Sydney.”
Kusher said rising prices were a boon to homeowners, but were making it increasingly difficult for would-be buyers to break into the market.
“The rise in suburbs with a median value of at least $1 million over recent years is reflective of the growing chasm between those that own homes and those who don’t,” he said.