487 Markets Join Million Dollar Real Estate Club: CoreLogic

CoreLogic’s latest report showed that about 23.8% of the 596,733 real estate sales recorded in the year through March were valued at over $1 million or more.

The most recent sales transaction figures are also up 19.8% from the 497,923 sales recorded in 2021.

In the year to May, the property data provider revealed an additional 487 deals – including 450 homes and 37 unit deals – were officially welcomed into the upscale club.

New additions to the prime housing segment have brought the total number of home and unit deals with a median value of $1 million or more to currently stand at 1,367 home and unit deals.

According to CoreLogic research analyst Kaytlin Ezzy, the country’s bullish economic and real estate growth in the latter part of 2021 has pushed both the volume of real estate transactions and the proportion of million-dollar sales to new highs. .

“Elevated consumer sentiment, tight announced supply and low interest rates have fueled strong growth in home values ​​throughout 2021, driving a new record annual growth rate of 22.4% on 12 months to January,” Ms Ezzy said.

But while almost all the capitals and the rest of the regions in the state have seen strong growth on a yearly basis, the analyst pointed out that there is now a divergence in the growth conditions across the country.

“Since January, home values ​​in Sydney and Melbourne have started to decline, while values ​​have continued to rise in South Australia and Queensland. More recently, Canberra, which had previously seen several months of consecutive growth, saw its first declines in house values ​​in some years in May, ”said Ms Ezzy.

And with the country’s housing market shifting into first gear – marked by the first drop in national property values ​​in May since September 2020 – Ms. Ezzy expects initiations into the first club to decrease over the next few months.

To support his argument, the analyst cited that housing demand, transactions and national median values ​​have gradually weakened in recent months amid growing global uncertainty and affordability constraints.

Ms Ezzy added that high non-discretionary inflation coupled with rising interest rates would likely cause household budgets to tighten in the coming months, further reducing housing demand over the medium term.

“As the market enters the down phase of the cycle, it is likely that a number of newcomers to the million dollar list will see their median value drop below the million dollar mark,” she said. declared.

However, the expert acknowledged that the days of future high-yield property owners are not yet numbered as more Australians hit record high domestic wealth in the last quarter, giving them the ability to make part of the prestigious club.

“Despite this, Australian household wealth reached record highs at the end of the March quarter, driven by continued strength in the housing market, largely driven by gains in the property sector,” Ms Ezzy said.

Recently, the Australian Bureau of Statistics (ABS) reported that total household wealth held by Australian residents increased by one total of $173 billion in the March quarter, hitting a record $14.9 trillion. Wealth per capita also peaked at $574,807.

Sydney tops the million-dollar real estate pack

The report showed that Sydney was home to 26.3% of new million dollar markets in the 12 months to May.

Data showed that 448 homes and 104 unit markets in the NSW capital are now part of the prime property club, indicating a 26.6% increase on last year.

Ms. Ezzy described the numbers as “unsurprising,” given the city’s median home value has been over $1 million since May 2021.

“While the greatest concentration of new million dollar markets in the South West, Outer South West and Central Coast of the city, Sydney’s Million Dollar Markets are quite prevalent , with more than half of all Sydney sales in the 12 months to May coming in at or above $1million,” she said.

In Melbourne, 212 homes and 11 unit markets had a median value of $1 million or more in May, the majority of which were located in the Melbourne interior (39), southern interior (42), l inside is (30) and outside is (30). ).

BrightonBrighton, SA Brighton, VIC Brighton, TAS Brighton, QLD, located in south central Melbourne, was the best performing in the Victorian capital during the period. The suburb recorded the highest median sale price in the city at $3,778,312. In the year to May, 34.6% of sales in Melbourne were priced at $1 million or more, down from 26.5% in the same period last year.

More small towns and regional markets join the million dollar club

Although the majority of small capitals lag behind Sydney and Melbourne in home value growth on an annual basis, CoreLogic has reported strong increases in the number of new million dollar club entries in from Brisbane, Adelaide, PerthPerth, TAS Perth, WAHobart and the ACT.

In Brisbane, the number of million-dollar markets more than doubled, rising 139.2% in the year to May. Regional Queensland also saw a 139.2 per cent increase in million dollar suburbs compared to the same period last year.

According to the report, Queensland’s relative affordability and high interstate migration have supported a surge in values, with Tenerife retaining its position as Brisbane’s most expensive property market at $2,873,947.

Adelaide also doubled the number of its millions of members in the market, reporting 79 markets with a median home value of $1 million or more during the period. In the year to May, 13% of sales recorded a sale price of seven figures or more.

Unley Park maintained its position as Adelaide’s most expensive property market, with a current median value of $2,129,770, indicating an increase in average value in the suburbs of around $420,000 from the previous year .

In Perth, 56 markets were on the million dollar list in May, up from 43 the previous year.

Data showed that nine of the 10 most expensive property markets in Western Australia’s capital were located in the inner city region, where Dalkeith recorded the highest median value at $2,965,588.

Hobart also welcomed new members to the property’s trophy club. In the 12 months to March, 19.3% of sales in the Tasmanian capital had a sale price of $1million or more, up from 8.3% last year.

The Sandy Bay real estate market recorded the highest median value in the city in May at $1,402,803, followed by Acton Park at $1,316,329.

Meanwhile, no market in regional Tasmania recorded a median value of $1 million.

In the ACT, 52 real estate deals made the million-dollar list in May, more than double the 28 recorded the previous year.

And while no unit markets in the territory are on the list, it’s worth noting that 62.7% of ACT’s residential markets have now entered the premium market segment.

Meanwhile, ACT’s share of $1 million sales increased in the year to May, from 16% in 2021 to 28.9% in 2022.

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487 Markets Join Million Dollar Real Estate Club: CoreLogic



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Last update: June 28, 2022

Posted: June 29, 2022