One-third of Perth suburbs are now ‘million-dollar markets’

The number of Australian suburbs with a median house or unit value in the million-dollar club reached a record high in August, according to the latest CoreLogic Million-Dollar Markets report.

The report showed one-third of the 4772 suburbs analysed recorded a current median value at or above $1 million, up from a recent low of 21 per cent in January 2023 following the start of the rate-tightening cycle.

The number of Perth suburbs that have joined the million dollar club has soared over the past year.Credit: Ross Swanborough

CoreLogic economist Kaytlin Ezzy said Perth came in third, with 35 new entrants and one re-entrant to the million-dollar club over the year.

It also marked the first time that unit markets in four Perth suburbs topped the million-dollar mark.

“Despite recording the highest annual rise in dwelling values among the capitals and rest of state regions, Perth’s relatively low starting point resulted in fewer new seven-figure markets compared to Sydney and Brisbane,” Ezzy said.

“At the other end of the scale are Melbourne and regional Victoria, where dwelling values fell by one per cent over the year.

“An unfavourable investment taxation environment, a higher level of new housing completions, and an above average level of advertised supply have put downwards pressure on values, resulting in fewer new million-dollar entrants in Melbourne and a net decline across Regional Victoria.”

Ezzy said it was unlikely that Perth had reached the peak in the number of million-dollar markets.

“As of August, there are 24 suburbs with a median value above $990,000 currently recording positive quarterly value growth,” she said.

“It’s likely we’ll see a number of these markets cross the million-dollar threshold within the next few months.”

Perth led the country in value growth, with dwelling values up 24.2 per cent over the year to August.

This has resulted in a 56 per cent increase in the number of seven-figure suburbs compared to last year with 31-house and four-unit markets entered the club for the first time and one house suburb (Highgate) re-entered the club, taking the total count to 100.

Perth’s inner, north-west and south-west regions each had 26 markets with a seven-figure median value in August, while the south-east and north-east regions had 19 and three, respectively.

Mandurah is now the only SA4 region in Perth that does not have a million-dollar market.

Nine of Perth’s top 10 most expensive house markets are located in the Cottesloe–Claremont sub-region, with Dalkeith recording the highest median value at $3.5 million.

Similarly, all four of the newly minted million-dollar unit markets (Cottesloe, Crawley, Floreat, and Swanbourne) are in the exclusive beachside neighbourhood.

Despite recording the highest annual increase in values across the regional markets (up 19 per cent), regional WA saw just one house market, Dunsborough ($1.2 million), join the million dollar club, taking the total count to three.

Quindalup ($1,377,367) and Yallingup ($1,654,267) were the only other markets to record a house median above the $1 million mark.

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