Powered by MOMENTUM MEDIA
subscribe to our newsletter

$1m property sales hit record high

The number of properties selling for more than $1 million has continued to grow despite attempts to improve housing affordability, recent research by CoreLogic has found.

In its latest Property Pulse paper, research analyst Cameron Kusher said that property prices just keep rising, with the proportion of houses on the market for more than $1 million set to eclipse affordable housing.

“With dwelling values continuing to climb, we anticipate that in another 12 months we’ll see an even higher proportion of sales sitting at or above $1 million,” Mr Kusher said.

“The flip side to this is that the ongoing increase in the proportion of residential properties selling in excess of $1 million highlights the ongoing deterioration in the availability 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.”

Advertisement
Advertisement

He furthered that the bracket creep should not be a surprise in Sydney and Melbourne, with each of these cities experiencing value increases by 77 per cent and 61 per cent, respectively, over the last five years.

In June 2017, Sydney dominated the capital cities in terms of dwellings valued at $1 million or more, with 47.8 per cent of houses and 21.3 per cent of units.

Values for other capital cities were:

- Melbourne at 25.9 per cent of houses and 7.4 per cent of units;

- Perth at 10.7 per cent of houses and 3.9 per cent of units;

PROMOTED CONTENT


- Canberra at 11.9 per cent of houses and 2.1 per cent of units;

- Brisbane at 7.9 per cent of houses and 2.8 per cent of units;

- Adelaide at 5.3 per cent of houses and 1.7 per cent of units;

- Darwin at 4.1 per cent of houses and 1.4 per cent of units; and

- Hobart at 2.4 per cent of houses and 1 per cent of units.

Overall, 23.2 per cent of all houses, and 10.8 per cent of all units, in all capital cities are valued at $1 million or more.

“While Sydney and Melbourne dominated as the two capitals with the highest proportion of sales at at least $1 million, most other capital cities and regional areas also enjoyed a proportional lift in home sales over the million-dollar mark,” Mr Kusher said.

This is not just a trend in capital cities but in regional markets, too, as the percentage of all houses and units valued at $1 million or more across every regional market was up at 4.1 per cent for houses and 3.5 per cent for units, compared to 3.5 per cent and 3.2 per cent, respectively, over the last year.

[Related: Homes over $2m becoming the norm ]

$1m property sales hit record high
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Banks are too reliant on regulatory oversight to do what is right for borrowers, the big four boss has said. ...

There has been a surge in Melbourne residents migrating to regional Victoria, and an uplift in new housing approvals in Geelong, new researc...

ASIC reported a significant increase in the number of ACL and AFSL applications it received in the past year due to licensing reforms, inclu...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.