Study reveals highest numbers of both volume of transactions and share of million-dollar sales
CoreLogic’s annual Million Dollar Markets report has revealed a record number of Australians spending $1 million or more to secure a home in the past year.
In the year leading to March 2022, CoreLogic collected close to 600,000 sales nationally, up 20% from circa 500,000 sales recorded a year ago. Of these sales, 23.8% sold for at least $1 million. CoreLogic research analyst and report author Kaytlin Ezzy chalked the result – a record-breaker for both the volume of transactions and proportion of million-dollar sales – to the country’s ‘bullish economic and property performance’ during the latter part of 2021.
In the year leading to May, an additional 487 markets joined the million-dollar club, bringing the total proportion of house and unit markets with a median value of $1 million or more analysed in May to 30.4% (1,367).
“High consumer sentiment, tight advertised supply, and low interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4% over the 12 months to January,” Ezzy said.
The report shows that Sydney suburbs made up more than a quarter (26.3%) of the new million-dollar markets, a result Ezzy called unsurprising considering the city’s median dwelling value has sat above the million-dollar mark since May last year.
“While the largest concentration of new million-dollar markets in the city’s south west, outer south west and Central Coast, Sydney’s million-dollar markets are fairly widespread, with more than half of all Sydney sale[s] over the 12 months to May transaction at or above $1 million,” she said.
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CoreLogic reported more than double the number of million-dollar markets across Brisbane (up 139.2%) compared to this time last year, which the study attributed to Queensland’s relative affordability and strong interstate migration. Adelaide recorded 79 markets with a median house value of $1 million or higher – likewise more than double the number of markets recorded this time last year. Over the year to May, 13% of sales recorded a sale price at or above $1 million.
In Perth, 56 house markets made the million-dollar list in May, up from 43 the year prior, while almost 20% of sales across Hobart were priced at or above $1 million, up from 8.3% the year prior.
Across the ACT, 52 house markets made the million-dollar list in May, more than double the number recorded in 2021. No unit market made the list. Still, the portion of million-dollar sales rose over the year to May, from 16% in 2021 to 29% in 2022.