Million Dollar Suburbs Tank as House Prices Fall

Ninety-two Australian suburbs have fallen below the $1 million median price mark, according to the latest Corelogic data.

The research shows 741 suburbs across Australia made the million-dollar-plus club in January last year, with this number falling to 649 suburbs as of last month.

Research analyst Cameron Kusher says the decline in million dollar suburbs over the year occurred for both houses and units.

For houses, 602 suburbs nationally have a median value of at least $1 million, this is a drop from 669 suburbs a year ago.

“With credit conditions looking set to remain tight and value declines currently fastest for the most expensive properties, it is expected that in 12 months’ time the number of million-dollar suburbs nationwide will have reduced further,” Kusher said.

While 47 suburbs have a median unit value of at least $1 million, down from 72 suburbs a year ago.

A decade ago the country only had 123 suburbs with the hefty median price tag.

Related: January Kicks Off Weak Start to Housing Market: Corelogic

New South Wales

Perhaps unsurprisingly, Sydney represents a large portion of the million-dollar suburbs for the state, at 93.7 per cent. With all unit suburbs also centered in the capital city.

Box Hill in Sydney’s north west saw one of the biggest median-value falls, dropping from $1.5 million to $896,000 across the 12 months.

While Agnes Banks dropped from $1.47 million to $896,118 for the period.

New South Wales is currently home to 366 suburbs with a median house value of at least $1 million, this has dropped from 402 suburbs in January last year.

While million-dollar unit suburbs dropped from 67 last year in January to 46 suburbs last month.

“A decade earlier, 78 suburbs had a $1 million median house value but only two suburbs had a $1 million median for units,” Kusher said.

Related: These Are The Top 10 Most In Demand Suburbs In Australia

Victoria

Victoria is home to 129 suburbs with a median value of at least $1 million, with 125 of these suburbs in Melbourne.

This number is down from 170 suburbs 12 months ago.

Only one suburb for units makes the list, Brighton at $1.23.7 million, explains Kusher.

“In January 2009, 16 suburbs had a median value of at last $1 million which highlights the substantial increase in dwelling values over the past decade.

“The fall in million dollar suburbs has been much greater in Melbourne than in regional Vic.”

Suburbs seeing a drop include Red Hill down to $917,516 from $1359,963, a 32.5 per cent drop over the year, and Blackburn South now with a median house value of $962,667 from $1,205,507 in January 2018.

Related: Brisbane Leading the Nation in Property Performance Indicators, But Boom Talk Premature

Queensland

Going against the grain, the Sunshine state saw an increase in million dollar 'burbs; rising to 38 from 34 in January last year.

New suburbs making Queensland’s list were Rochedale ($1,002,380), West End ($ 1,014,057), Camp Mountain ( $1,011,268) and Wights Mountain ($ 1,001,364 ).

Kusher says a decade ago Queensland was home to only five suburbs with a million dollar price tag.

“The number of million-dollar suburbs in Queensland has consistently increased each year since 2013,” he said.

“This increase in million dollar suburbs has occurred despite ongoing weak overall housing conditions across the state.”

Brisbane is home to 26 of the million-dollar median suburbs, up from 22 suburbs the previous year.

“While in regional Queensland there was one suburb which was steady over the year,” Kusher said.