The cost of housing has risen in most parts of the country over the past 12 months, pushing the proportion of homes selling for at least one million dollars to new record highs, according to Cameron Kusher
, head of research at CoreLogic
“Bracket creep should come as no surprise in markets like Sydney and Melbourne where dwelling values have increased by 77% and 61% respectively over the past five years,” Kusher said. “While the rise in housing values has been most pronounced in Sydney and Melbourne, most other capital cities and regional areas have also seen a proportional lift in home sales over the million dollar mark.”
Over the 12 months to June 2017, 15.4% of all house sales and 8.8% of all unit sales nationally were at a price that touched at least $1m. By comparison, 12 months prior, 14.4% of all house sales and 7.5% of all unit sales were at least $1m in value.
“The instances of dwellings selling for at least $1 million is much more prevalent across the combined capital cities. Over the 12 months to June 2017, 23.2% of all houses and 10.8% of all units sold in capital cities were sold for at least $1 million. The proportion of sales of at least $1 million has increased over the year from 21.5% of houses and 9.1% of units,” Kusher said.
Regional housing markets generally have lower housing costs than the capital cities. However, the proportion of sales occurring for at least $1m is also surging in these areas. Across the combined regional areas, the proportion of houses selling for at least $1m has increased from 3.5% in June of last year to 4.1% in June 2017.
The proportion of units selling for at least $1m has increased to 3.5% of all sales in June of this year, up from 3.2% a year earlier.
Sydney and Melbourne have had significantly more properties sell for at least $1m over the past year than the other capitals.
“Over the past year, 47.8% of all houses and 21.3% of all units sold in Sydney transacted for at least $1 million. By comparison, 10 years earlier, just 13.8% of houses and 4.7% of units transacted from at least $1 million over the year,” Kusher said.
“In Melbourne, more than a quarter (25.9%) of house sales and 7.4% of unit sales were at least $1 million in value. By comparison, ten years earlier 5.8% of house sales and 2.7% of unit sales over the year were at least $1 million.”