In August, 29.3% of the 4,772 suburbs analysed had a median value exceeding one million dollars, a substantial increase from 21.7% in January 2023, when the market was at a low point following rate increases.

This is the greatest percentage observed since April 2022, when 26.9% of suburbs achieved seven-figure medians.

“Only 14.3% of house and unit markets had a median value at or above $1 million at the inception of COVID-19.” says CoreLogic Experts.

With over 30% of areas now having a seven-figure median, the rise is a logical result of increasing prices and decreasing affordability.”

Regional growth in million-dollar markets

Sydney, the most expensive metropolis in Australia, experienced the greatest increase in million-dollar suburbs, adding 46 markets over the course of the year. Brisbane and Melbourne are in a tie for second place.

Brisbane replicated this net increase, which was fueled by a 15% increase in dwelling values.

These are the obstacles that Brisbane faces: Since the inception of COVID-19, Brisbane values have increased by 65.1% due to the ongoing undersupply of newly constructed housing stock and advertised listings, as well as the positive flow of interstate migration.

The growth of Perth

Perth has experienced substantial growth, with the addition of 35 new million-dollar markets. However, it continues to trail Brisbane and Sydney. Perth’s lower starting prices resulted in a smaller number of localities joining the million-dollar membership, despite the fact that it experienced the highest annual increase in dwelling values.

Keep an eye on the Suburbs

Growth rates have decreased from 2% in the three months prior to April to 1.3% in the three months prior to August on a national scale. Nevertheless, the quantity of million-dollar suburbs has not reached its maximum.

24 suburbs are presently just short of the million-dollar threshold, and it is probable that a number of these markets will surpass it within the next few months.

Concerns regarding affordability escalate.

Buyers require increased revenues to accommodate repayments as values increase. In order to maintain payments below 30% of earnings for a $1 million property with a typical mortgage, households now need an income of nearly $200,000, which is an increase from $125,000 prior to the initial rate rise.

State-specific market highlights

New South Wales

Sydney currently holds 78.3% of the housing market, with 555 localities, including 448 houses and 107 units, now classified as million-dollar properties.

Regional NSW also expanded 22 million-dollar markets, with a concentration in regions such as the Illawarra and Richmond Tweed. This is particularly noteworthy.

Melbourne experienced a slight increase in million-dollar markets, whereas regional Victoria experienced a decrease, which was indicative of an oversupply and reduced demand pressures.

Queensland

Brisbane experienced the greatest net increase, with 46 new million-dollar house markets, while regional Queensland added 30 markets, with the Gold Coast and Sunshine Coast contributing in particular.

Western Australia and South Australia

In Perth, 35 new markets were introduced as a result of the accelerated value growth, while Adelaide now has 104 suburbs with million-dollar values. However, regional WA saw limited additions.

Tasmania, Northern Territory, and Canberra Hobart’s million-dollar market remained stable despite a value decline, and none of the markets in Darwin or regional NT exceeded the million-dollar threshold. Six suburbs rejoined the union, resulting in a modest increase in Canberra.

Million-dollar markets are on the rise—are you primed to become an investor?

Managing these growing markets necessitates the assistance of an expert, regardless of whether you are considering a fantasy property or a profitable investment. 

Avoid falling behind; allow ASK Financials to assist you in capitalising on the opportunity!

Contact ASK Financials today to investigate bespoke mortgage solutions that will enable you to stay ahead of the market.

With the appropriate financing strategy, you can secure your position in one of Australia’s most vibrant property markets. “Because when the stakes are high, you require a partner who is well-versed in the game!

—

Read More: https://tinyurl.com/asknewsau/

Call Us: 0433 944 055

Book a Free Chat: https://tinyurl.com/askfinancials/