Number of $1 million property sales hits record high

Adam Smith 15 August 2017 NEWS

house pricetag1Sydney and Melbourne lead the way in $1 million house sales.

New research from CoreLogic shows 15.4% of all houses and 8.8% of all units sold in the 12 months to June were sold at a price of at least $1 million. By comparison, the previous 12 months saw 14.4% of houses and 7.5% of units sell above the $1 million mark.

“Bracket creep should come as no surprise in markets like Sydney and Melbourne where dwelling values have increased by 77% and 61% respectively over the past five years. While the rise in housing values has been most pronounced in Sydney and Melbourne, most other capital cities and regional areas have also seen a proportional lift in home sales over the million dollar mark,” CoreLogic researcher Cameron Kusher said.

In capital cities, the proportion of sales over the $1 million mark was even higher. Across the combined capitals, 23.2% of all houses and 10.8% of all units sold for at least $1 million. In Sydney, 47.8% of houses and 21.3% of units sold above the $1 million price point, while 25.9% of Melbourne houses and 7.4% of Melbourne units sold for more than $1 million.

“With dwelling values continuing to climb, it is anticipated that in another 12 months an even higher proportion of sales will be sitting at or above $1 million,” Kusher said.

Kusher said the data highlighted the “ongoing deterioration” of housing affordability.

“Although the Federal Government attempted to address housing affordability in the Budget this year, it is clear that in order to improve housing affordability there is much more work to be done on both supply and demand drivers of the market,” Kusher said.

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