Over the 12 months leading to December 2017, 16.1 per cent of houses (up from 14.8 per cent in the previous 12 months), and 9.5 per cent of units (up from 8.1 per cent in the previous year) that were sold in 2017 exceeded $1 million.
In the 2017 calendar year, a greater proportion of houses and units sold for more than $1 million than those sold for less than $200,000.
Further, 23.8 per cent of houses and 11.6 per cent of units sold across Australia’s capital cities exceeded $1 million, up from 21.7 per cent and 9.8 per cent, respectively, when compared to the previous 12 months.
The value of dwellings sold in regional markets also rose in 2017, with 4.6 per cent of houses (up from 3.6 per cent) and 3.8 per cent of units (up from 3.6 per cent) selling for more than $1 million.
Almost half of all properties sold in Sydney (49.3 per cent) exceeded $1 million in 2017, an increase of 3.9 per cent from 45.4 per cent in the previous 12 months. Of the units sold in Sydney in the 12 months ending December 2017, 22.3 per cent exceeded $1 million.
However, CoreLogic said that house prices have begun to fall in Sydney and it predicted there could be fewer homes sold for $1 million-plus in the next 12 months.
Melbourne’s share of properties sales over $1 million also increased over 2017, with 28.3 per cent of house and 8.3 per cent of units exceeding $1 million, up from 23.7 per cent and 7.2 per cent in 2016.
The number of dwellings sold for over $1 million also increased in Brisbane (8.3 per cent of houses/3.4 per cent of units), Adelaide (5.5 per cent/1.6 per cent), Canberra (12.6 per cent/2.5 per cent) and Hobart (2.8 per cent/0.9 per cent).
However, property sales exceeding $1 million declined in Perth, with 10.3 per cent of houses and 3.2 per cent of units selling for over $1 million, down from 10.4 per cent and 4.5 per cent, respectively.
According to CoreLogic, Darwin was the weakest performing city, with only 3.1 per cent of houses and 1.3 per cent of units selling for over $1 million in 2017, down from 4.1 per cent and 2.3 per cent, respectively.
“The latest data is showing that a number of capital cities have now recorded falls in values, in particular the most expensive city, Sydney,” the analysts said.
“Additional data also indicates that values are falling by the greatest amount across the premium sector of the housing market.
“Should these declines continue, it may result in a decline in the share of sales of properties at or in excess of $1 million throughout 2018.”
Charbel Kadib is the news editor on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.