A healthy 11% rise in combined capital city home values over the past twelve months has seen 437 suburbs now join the CoreLogic RP Data 'Million Dollar Club'.
To be eligible for ranking as a million-dollar-suburb, each suburb had to achieve a minimum of 10 sales over the past year.
Across the nation the 437 suburbs to make it to millionaire's row is a record result and represents an increase of 23.1% from the previous year following a 44.3% rise in the number of million dollar suburbs between 2013 and 2014.
The rise in the number of suburbs with a median value of at least $1 million comes off the back of an 11.1% rise in combined capital city home values over the past twelve months. The rise in values has been strongest in Sydney and Melbourne and the jump in the number of suburbs on the list is evidence of these strong value rises.
In today's top 20 most expensive suburbs list, nationally, the results shows that Sydney suburbs clearly dominate the record board and account for 17 of the 20 most expensive suburbs nationally.
Top 20 suburbs with the highest median value, as at June 2015
On the other hand, only 1 Melbourne suburb and 2 Perth suburbs made it to the millionaire suburbs list. In other states the most expensive suburbs are a long way from making it into the top 20.
For units, Dawes Point in Sydney at 14th spot is the most expensive suburb and is the only suburb on the top 20 list for units.
By way of the total number of suburbs with a $1 million median value or greater, the results are as follows:
- NSW had the greatest number of suburbs at 302, up from 232 the previous year. NSW's share of suburbs with a median value of $1 million or higher is also rising quite sharply. In 2010 57.6% of $1 million suburbs nationally were in NSW, the proportion has now lifted to 69.1%.
- With 61 suburbs, Vic is the state with the second highest number of suburbs with a median value in excess of $1 million and far less than NSW's number.
- Elsewhere the proportions of national $1 million suburbs are: 14.0% in Vic, 3.2% in Qld, 2.7% in SA, 8.9% in WA, 0.0% in Tas, 0.5% in NT and 1.6% in ACT.
This data reflects the effect of strong capital growth rates which show that Sydney values are growing substantially faster than all other areas and the cost of housing in Sydney is much higher than elsewhere. Additionally, those that have owned a Sydney property for at least several years are likely to have built up a substantial level of equity in their home.
Of the 437 suburbs with a median value of at least $1 million over the past year, 427 or 97.7% of suburbs were located in a capital city. There were also significantly more suburbs making the list for houses (424) than units (13). In fact, all of the suburbs listed for units were situated in Sydney and were located adjacent to or on the water.
Number of suburbs with a median value of at least $1 million, as at June 2015
While the number of suburbs with a median value of at least $1 million has risen sharply over recent years, CoreLogic RP Data also recorded a sharp rise in suburbs with a median value of at least $2 million. In June 2014, 32 suburbs had a median value in excess of $2 million and this figure has now increased to 48 suburbs. Of these 48 suburbs, 40 are in Sydney, 5 are in Melbourne, 2 are in Perth and 1 is in Canberra.
With dwelling values continuing to trend higher, particularly in Sydney and Melbourne, we anticipate that the number of suburbs with a median value of more than $1 million will expand further over the coming year.
However, with growth levels potentially moderating over the coming year we aren't likely to see as substantial a jump in the number of suburbs as what has been seen over previous years.
Article by Tim Lawless, CoreLogic RP Data research director.
In compiling this publication, CoreLogic has relied upon information supplied by a number of external sources and CoreLogic does not warrant its accuracy or completeness. To the full extent allowed by law CoreLogic excludes all liability for any loss or damage suffered by any person or body corporate arising from or in connection with the supply or use of any part of the information in this publication. CoreLogic recommends that individuals undertake their own research and seek independent financial advice before making any decisions. © 2014 CoreLogic.