Record number of Australian suburbs have homes at over a million dollars

The number of suburbs in Australia with homes values at a millions dollars or over has climbed to 437, a new record and an increase of 23.1% year on year.

The data from CoreLogic also shows that the number 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 12 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. To be eligible for ranking as a million-dollar-suburb, each suburb had to achieve a minimum of 10 sales over the past year.

Sydney suburbs clearly dominate the record board and account for 17 of the 20 most expensive suburbs nationally. Only one Melbourne suburb and two 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.

A breakdown of the figures shows that New South Wales had the greatest number of suburbs at 302, up from 232 the previous year. New South Wales'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 New South Wales, the proportion has now increased to 69.1%.

With 61 suburbs, Victoria is the state with the second highest number of suburbs with a median value in excess of $1 million and far less than New South Wales's number, but 14% overall. The rest of Australia has very few.

According to Tim Lawless, CoreLogic RP Data research director, the 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 at 424 than units at 13. In fact, all of the suburbs listed for units were situated in Sydney and were located adjacent to or on the water.

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, five are in Melbourne, two are in Perth and one 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,’ said Lawless.

‘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,’ he added.