A record number of suburbs have made it into CoreLogic RP Data’s ‘Million Dollar Club’ as Australian house prices continue to sizzle.
Across the nation, 437 suburbs made it into the Million Dollar Club, which 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.
To be eligible for ranking as a million-dollar-suburb, each suburb had to achieve a minimum of 10 sales over the past year.
According to CoreLogic RP Data’s head of research Tim Lawless, 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,” he said.
Sydney suburbs clearly dominate the most expensive suburbs list, accounting for for 17 of the 20 most expensive suburbs nationally.
On the other hand, only one Melbourne suburb and two Perth suburbs made it to the millionaire suburbs list. In other states, Lawless said the most expensive suburbs “are a long way” from making it into the top 20.
“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,” Lawless said.
“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.
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.