With data for the end of financial year now available, it’s interesting to look at the number of suburbs with a median house and/or unit value of $1 million or more. Although many of us can’t afford to own a home worth more than $1 million, it is an interesting analysis which also highlights the deteriorating affordability of housing across the country.
At the end of the 2015-16 financial year, there were 615 suburbs nationally that had a median house value of at least $1 million. This represented 10.3% of all suburbs nationally that had at least 10 house sales over the year. Units are generally much more affordable than houses and this is reflected by the fact that 1.0% of suburbs (or 26 suburbs) nationally with more than at least 10 sales had a median value of $1 million or greater.
The current growth phase in the housing market commenced in June 2012. At that time, just 277 suburbs nationally (4.7%) had a median house value of $1 million or more and seven suburbs (0.3%) had a median unit value of or in excess of $1 million. Based on this data, the number of suburbs with a median value of $1 million or more has increased by 122% over the current growth phase and for units it is up by 271%.
Between June 2012 and June 2016, every state and territory except for Tasmania and the Northern Territory has recorded an increase in the number of suburbs in which median house values are $1 million or greater. At the same time, Queensland and Western Australia have each shed the one suburb they had for units in which the median values was at least $1 million. In New South Wales the number of suburbs with a median unit value of at least $1 million has increased by 420% over the period. Focusing on houses, the number of suburbs with a median value of at least $1 million has increased over the period by: 144% in New South Wales, 142% in Victoria, 120% in Queensland, 78% in South Australia, 29% in Western Australia and 50% in the Australian Capital Territory.
New South Wales and Victoria have predictably recorded the largest increases in suburbs with a median value of more than $1 million over the period given the strength of growth in the Sydney and Melbourne housing markets. In all other states and territories except Tasmania the number of $1 million plus suburbs for houses rose since June 2012 with the number of suburbs having fallen over recent years in Western Australia and the Northern Territory in line with the decline in home values in Perth and Darwin. These figures reiterate that even though value growth outside of Sydney and Melbourne has been moderate over recent years, demand for premium housing has been stronger.
With mortgage rates low we would expect the number of suburbs with a median value of $1 million or more to growth over the coming financial year. This also highlights that low interest rates are contributing to deteriorating levels of housing affordability across the country.
Who’s new to the million-dollar suburbs list in 2016?
Suburb
State
Area
House/Unit
HALL
ACT
Canberra
H
KINGSTON
ACT
Canberra
H
BLACK HILL
NSW
Hunter
H
MEREWETHER
NSW
Hunter
H
POKOLBIN
NSW
Hunter
H
THE JUNCTION
NSW
Hunter
H
AUSTINMER
NSW
Illawarra
H
BARRACK POINT
NSW
Illawarra
H
COLEDALE
NSW
Illawarra
H
GERROA
NSW
Illawarra
H
SCARBOROUGH
NSW
Illawarra
H
WOMBARRA
NSW
Illawarra
H
ANGOURIE
NSW
Mid-North Coast
H
BROKEN HEAD
NSW
Richmond-Tweed
H
TINTENBAR
NSW
Richmond-Tweed
H
ALLAWAH
NSW
Sydney
H
ARNCLIFFE
NSW
Sydney
H
ASQUITH
NSW
Sydney
H
BALMAIN
NSW
Sydney
U
BALMAIN EAST
NSW
Sydney
U
BANGOR
NSW
Sydney
H
BANKSIA
NSW
Sydney
H
BARDEN RIDGE
NSW
Sydney
H
BAULKHAM HILLS
NSW
Sydney
H
BEAUMONT HILLS
NSW
Sydney
H
BELFIELD
NSW
Sydney
H
BELMORE
NSW
Sydney
H
BEVERLY HILLS
NSW
Sydney
H
BIRCHGROVE
NSW
Sydney
U
BLAXLANDS RIDGE
NSW
Sydney
H
BONDI JUNCTION
NSW
Sydney
U
BONNET BAY
NSW
Sydney
H
BREAKFAST POINT
NSW
Sydney
U
CANTERBURY
NSW
Sydney
H
CARLTON
NSW
Sydney
H
CLOVELLY
NSW
Sydney
U
COMO
NSW
Sydney
H
DACEYVILLE
NSW
Sydney
H
DOUBLE BAY
NSW
Sydney
U
DUNDAS
NSW
Sydney
H
DUNDAS VALLEY
NSW
Sydney
H
EAST KURRAJONG
NSW
Sydney
H
ELLIS LANE
NSW
Sydney
H
FAIRLIGHT
NSW
Sydney
U
GALSTON
NSW
Sydney
H
GRASMERE
NSW
Sydney
H
GROSE VALE
NSW
Sydney
H
GROSE WOLD
NSW
Sydney
H
GYMEA
NSW
Sydney
H
HOMEBUSH WEST
NSW
Sydney
H
HUNTERS HILL
NSW
Sydney
U
HURLSTONE PARK
NSW
Sydney
H
KAREELA
NSW
Sydney
H
KELLYVILLE RIDGE
NSW
Sydney
H
KENTLYN
NSW
Sydney
H
KILLCARE
NSW
Sydney
H
KIRRAWEE
NSW
Sydney
H
KIRRIBILLI
NSW
Sydney
U
KULNURA
NSW
Sydney
H
KURNELL
NSW
Sydney
H
KURRAJONG HILLS
NSW
Sydney
H
LAKESLAND
NSW
Sydney
H
LIDCOMBE
NSW
Sydney
H
MANLY
NSW
Sydney
U
MARSDEN PARK
NSW
Sydney
H
MASCOT
NSW
Sydney
H
MILLERS POINT
NSW
Sydney
H
MINTO HEIGHTS
NSW
Sydney
H
MIRANDA
NSW
Sydney
H
MONA VALE
NSW
Sydney
U
MORTDALE
NSW
Sydney
H
NARWEE
NSW
Sydney
H
NORTH PARRAMATTA
NSW
Sydney
H
NORTH RYDE
NSW
Sydney
U
ORANGEVILLE
NSW
Sydney
H
OYSTER BAY
NSW
Sydney
H
PATONGA
NSW
Sydney
H
PEAKHURST HEIGHTS
NSW
Sydney
H
PENSHURST
NSW
Sydney
H
PHEASANTS NEST
NSW
Sydney
H
PICNIC POINT
NSW
Sydney
H
PITT TOWN
NSW
Sydney
H
POINT FREDERICK
NSW
Sydney
H
RAMSGATE
NSW
Sydney
H
ROCKDALE
NSW
Sydney
H
ROZELLE
NSW
Sydney
U
RYDALMERE
NSW
Sydney
H
SANDY POINT
NSW
Sydney
H
SHANES PARK
NSW
Sydney
H
SOMERSBY
NSW
Sydney
H
SOUTH MAROOTA
NSW
Sydney
H
ST PETERS
NSW
Sydney
H
SYDENHAM
NSW
Sydney
H
TEMPE
NSW
Sydney
H
THE PONDS
NSW
Sydney
H
THORNLEIGH
NSW
Sydney
H
TURRELLA
NSW
Sydney
H
VOYAGER POINT
NSW
Sydney
H
WATERLOO
NSW
Sydney
H
WAVERTON
NSW
Sydney
U
WEDDERBURN
NSW
Sydney
H
WEROMBI
NSW
Sydney
H
WESTMEAD
NSW
Sydney
H
WORONORA HEIGHTS
NSW
Sydney
H
WYONG CREEK
NSW
Sydney
H
YARRAMUNDI
NSW
Sydney
H
CHELMER
QLD
Brisbane
H
FORTITUDE VALLEY
QLD
Brisbane
H
PULLENVALE
QLD
Brisbane
H
RANSOME
QLD
Brisbane
H
WILLAWONG
QLD
Brisbane
H
HEATHPOOL
SA
Adelaide
H
KENT TOWN
SA
Adelaide
H
WALKERVILLE
SA
Adelaide
H
ABBOTSFORD
VIC
Melbourne
H
ASCOT VALE
VIC
Melbourne
H
ASHWOOD
VIC
Melbourne
H
BALACLAVA
VIC
Melbourne
H
BENTLEIGH EAST
VIC
Melbourne
H
BLACKBURN
VIC
Melbourne
H
BOX HILL
VIC
Melbourne
H
BOX HILL NORTH
VIC
Melbourne
H
BOX HILL SOUTH
VIC
Melbourne
H
BULLEEN
VIC
Melbourne
H
BURNLEY
VIC
Melbourne
H
BURWOOD
VIC
Melbourne
H
CARLTON
VIC
Melbourne
H
CAULFIELD EAST
VIC
Melbourne
H
CHADSTONE
VIC
Melbourne
H
DONCASTER
VIC
Melbourne
H
DONCASTER EAST
VIC
Melbourne
H
FLINDERS
VIC
Melbourne
H
GLEN WAVERLEY
VIC
Melbourne
H
HAMPTON EAST
VIC
Melbourne
H
HEIDELBERG
VIC
Melbourne
H
HUGHESDALE
VIC
Melbourne
H
MOONEE PONDS
VIC
Melbourne
H
MURRUMBEENA
VIC
Melbourne
H
NARRE WARREN EAST
VIC
Melbourne
H
NORTH MELBOURNE
VIC
Melbourne
H
NORTHCOTE
VIC
Melbourne
H
PARKDALE
VIC
Melbourne
H
RICHMOND
VIC
Melbourne
H
STRATHMORE
VIC
Melbourne
H
TEMPLESTOWE
VIC
Melbourne
H
TEMPLESTOWE LOWER
VIC
Melbourne
H
THORNBURY
VIC
Melbourne
H
TRAVANCORE
VIC
Melbourne
H
WHEELERS HILL
VIC
Melbourne
H
WINDSOR
VIC
Melbourne
H
WONGA PARK
VIC
Melbourne
H
MOUNT LAWLEY
WA
Perth
H
NORTH COOGEE
WA
Perth
H
OAKFORD
WA
Perth
H
SOUTH PERTH
WA
Perth
H
WATTLEUP
WA
Perth
H
Source: CoreLogic, 19/07/16
Cameron Kusher is head of research at CoreLogic
The post Is your suburb now worth $1 million? appeared first on Money magazine.