Recent research by CoreLogic in the latest Property Pulse reveals that the number of property sales selling for more than $1 million just keeps growing, despite attempts to improve housing affordability.
Research analyst Cameron Kusher said that property prices just keep rising, and these rising number of over $1 million properties are set to eclipse affordable housing.
“With dwelling values continuing to climb, we anticipate that in another 12 months we’ll see an even higher proportion of sales sitting at or above $1 million,” Mr Kusher said.
“The flip side to this is that the ongoing increase in the proportion of residential properties selling in excess of $1 million highlights the ongoing deterioration in the availability of housing affordability.
“Although the federal government attempted to address housing affordability in the budget this year, it is clear that in order to improve housing affordability there is much more work to be done on both supply and demand drivers of the market.”
He continued, saying the bracket creep should not be a surprise in Sydney and Melbourne, with each of these cities experiencing value increases by 77 per cent and 61 per cent respectively over the last five years.
In June 2017, Sydney dominated the capital cities in terms of dwellings valued at at least $1 million, with 47.8 per cent of houses and 21.3 per cent of units.
Following this was Melbourne, at 25.9 per cent of houses and 7.4 per cent of units, Perth at 10.7 per cent of houses and 3.9 per cent of units, Canberra at 11.9 per cent of houses and 2.1 per cent of units, Brisbane at 7.9 per cent of houses and 2.8 per cent of units, Adelaide at 5.3 per cent of houses and 1.7 per cent of units,
Darwin at 4.1 per cent of houses and 1.4 per cent of units and Hobart at 2.4 per cent of houses and 1 per cent of units.
Overall, 23.2 per cent of all houses in all capital cities are valued at at least $1 million, and 10.8 per cent of all units, up from over the last year from 21.5 per cent and 9.1 per cent respectively.
“While Sydney and Melbourne dominated as the two capitals with the highest proportion of sales at at least $1 million, most other capital cities and regional areas also enjoyed a proportional lift in home sales over the million-dollar mark,” Mr Kusher said.
This is not just a trend in capital cities, but in regional markets too, as the percentage of all houses and units valued at at least $1 million across every regional market is up at 4.1 per cent for houses and 3.5 per cent for units, compared to 3.5 per cent and 3.2 per cent respectively over the last year.