The current market softening is reducing the entry price of suburbs that have a million-dollar price point, allowing for investors to more easily add these properties to their portfolios.
The number of suburbs with a median value of $1 million or more are on the decline, with 649 suburbs in total offering these premium properties, according to CoreLogic’s latest Property Pulse report.
Cameron Kusher, research analyst at CoreLogic said this figure had dropped in recent years – down from 741 in January 2018, as well as January 2017’s 651.
“With credit conditions looking set to remain tight and value declines currently fastest for the most expensive properties, it is expected that in 12 months’ time the number of million-dollar suburbs nationwide will have reduced further,” Mr Kusher said.
While the national figure was down overall, not all states and territories recorded declines, the report revealed:
The number of million-dollar suburbs in NSW have risen over the last 10 years, but over the last year have declined to 366 suburbs, compared to January 2018’s 469 suburbs.
Sydney makes up the bulk of million-dollar suburbs of the state, accounting for 93.7 per cent for houses and all the unit suburbs.
Much like Sydney, Victorian million-dollar suburbs have risen since 10 years ago, but over the last year have declined, down to 129 suburbs from 170 in January 2018.
Nearly all of the million-dollar suburbs in Victoria can be found in Melbourne, at 125 out of 129.
Premium property saw a slight rise over the year, with suburbs with a median median value of at least $1 million rising up to 38, compared to January 2018’s 33. Brisbane accounted for 26 of those suburbs.
Suburbs with a median price value of $1 million or more increased by nearly half to 27 suburbs, up from 19 a year prior, with all 27/33 suburbs located in Adelaide.
Suburbs with a median value of at least $1 million declined slightly to 33 suburbs, down from last year’s 35, yet remained relatively consistent since 2014 with minor fluctuations. Only one suburb was not located in the capital city of.
This year is the first year that Tasmania saw a suburb with a median value of $1 million or over, being Battery Point with a median value of $1,067,186.
The market softening in Northern Territory’s property market has meant there are no suburbs in the territory with a median value of $1 million or over the last 10 years.
The capital of Australia saw nine suburbs with median house values at $1 million or above, declining from 10 suburbs over the two years prior.