Based on suburb median values as at June 2016, there were 613 suburbs across the country that had a median value of at least $1 million.

This week’s Property Pulse looks at suburbs which have a median value of at least $1 million.  To be included in the analysis the suburbs has had to have at least 100 applicable valuation observations. 

In June 2016, there were 613 suburbs nationally with a median value of at least $1 million, up by 29% over the year.  Looking at the split between houses and units, 570 suburbs were listed for houses (93%) and 43 (7%) were listed for units.  As the first chart shows, there has been a significant rise in suburbs with a median value of at least $1 million over recent years.  In fact, the number of suburbs has increased by 125% over the past 3 years.

Suburbs with a median value of at least $1 million, as at June each year

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In 2016 and historically, Tasmania has been the only state in which no suburbs have had a median value of at least $1 million.  The proportion of suburbs with a median value of at least $1 million in NSW has actually increased over time from 59.7% of national suburbs in 2008 to 68.2% in both 2015 and 2016.  Vic’s proportion of suburbs has also increased from 13.6% in 2008 to 16.6% in 2016.  Qld and WA have seen a large decline in their proportions of suburbs with a median value of at least $1 million between 2008 and 2016. 

Suburbs with a median value of at least $1 million
in each state, as at June each year

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The data highlights the bracket creep that has occurred over the housing growth cycle, and how housing affordability in NSW (Sydney) and to a lesser degree Vic (Melbourne) has deteriorated.  An increasing number of suburbs in these two states now have a median value of at least $1 million.

Taking a look at the 25 suburbs with the highest median values, it is largely a who’s who of prime waterfront and inner-city suburbs of Sydney.  In fact, Toorak in 9th spot and Peppermint Grove in 17th spot are the only two suburbs shown which aren’t located in Sydney.  Dawes Point in Sydney is the only suburb which makes the list for units.

25 most expensive suburbs as at June 2016

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Outside of NSW, Vic and WA, the most expensive Qld suburb is Tenerife with a median house value of $1,644,643, SA most expensive suburb is Springfield with a median house value of $1,737,499, NT most expensive suburb is Larrakeyah with a median house value of $1,196,987 and ACT most expensive suburb is Forrest with a median value of $2,067,813 for houses. 

While housing demand overall may be slowing a little, we expect that with historic low interest rates, demand for premium housing is set to remain buoyant over the coming year.  Subsequently we would expect in 12 months’ time even more suburbs to have a median value of at least $1 million.