More than one in five house sales across Australia’s combined capital cities sold for at least $1 million over the 12 months to June 2016, new data has shown.
Research from CoreLogic has revealed that the number of home sales for properties with a price tag of at least $1 million has boomed over recent years, with 20.9% of houses sold in the capital cities over the year to June selling for $1 million or more. Almost one in 10 units (8.9%) sold for a price tag of at least $1 million.
Over the past 10 years, the proportion of house sales of at least $1 million has increased almost 4.5 times, with figures from CoreLogic revealing that just 4.7% of houses sold in the year to June 2006 went for at least $1 million.
When compared to twenty years ago, in the year to June 1996, the proportion of houses sold for at least $1 million has increased 42 times. Just 0.5% of homes in the year to June 1996 sold for a minimum of $1 million.
In the unit market, the proportion of $1 million sales has increased 3.5 times from 2006 and 30 times from 1996.
Sydney, unsurprisingly, recorded the highest proportion of house sales over $1 million, with more than two in five (43.4%) of houses sold in the year to June 2016 selling for $1 million or more. Just under one in five Sydney apartments (16.6%) sold for at least $1 million.
Melbourne was next, with 21.8% of houses and 6.7% of apartments selling for at least $1 million over the past year.
Hobart recorded the lowest proportion of seven figure sales, with 1.7% of houses selling for at least $1 million and 0.6% of units selling for at least $1 million over the past year.
CoreLogic research analyst Cameron Kusher said he expects this trend to continue.
“Demand for premium housing and within the most expensive areas of the country remains buoyant which suggests that over the coming year the proportion of sales at a price point of at least $1 million will continue to rise,” Kusher said.