13 May $1M property markets – Cameron Kusher
This month Your Investment Property magazine takes a look at the $1M property markets around Australia. The stats were compiled by Core Logic and we catch up with Cameron Kusher from Core Logic to discuss the results.
Kevin: An interesting look in the latest Your Investment Property magazine looking at million-dollar properties. My guest on this chat is Cameron Kusher from CoreLogic.
Good day, Cameron, how are you doing?
Cameron: I’m well. Thanks, Kevin. How are you?
Kevin: Good, mate. I wanted to bring you into the conversation early because, well, you’re much younger than me, but gee, when I was your age thinking about having to pay $1 million for a property was something that was just out there in the ether. But it’s actually quite common now, isn’t it?
Cameron: It certainly is, particularly in markets like Sydney and Melbourne, but even at a national level, we are seeing a pretty strong upwards trend in the number of sales over $1 million.
Kevin: How many areas are there around Australia where we’re finding that?
Cameron: As I said, it’s largely in Sydney and Melbourne, but even in markets that have been pretty weak over the last few years – like Brisbane, Perth – you’re still seeing the number of million-dollar sales trend higher in those capital cities, as well.
Kevin: What’s been the growth like in those particular areas, Cameron?
Cameron: Nationally, we’ve seen over the 2017 calendar year, 16.1% of all houses and 9.5% of all units selling for at least $1 million, up from 14.8% of houses and 8.1% of units a year earlier. But if we look across the individual capital cities, 49.3% of all houses sold over the year in Sydney were over $1 million, up from 45.4% the previous year, and even looking at the unit market, we’re looking at 18.8% of all units selling for over $1 million.
If we go to somewhere like Melbourne, 28.3% of all houses and 8.3% of all units sold for at least $1 million, up from 23.7% of houses and 7.2% of units a year earlier. Then if we go to a market like Brisbane, we’re seeing 8.3% of all houses sold for at least $1 million and 3.4% of units. That’s up slightly over the previous year.
You can see there’s a real rising prevalence of $1 million sales, particularly in Sydney and Melbourne.
Kevin: Is $1 million the benchmark we should be measuring, or is that increasing? Is it $1.5 million or $2 million now?
Cameron: It’s obviously dependent on the city you’re in. In Sydney, you’d say the benchmark is probably more like $2 million. In Melbourne, it’s probably more like $1.5 million. $1 million is probably a bit more exclusive in capital cities like Brisbane, Adelaide, Perth, Hobart, Darwin, and Canberra. But certainly, in Sydney and Melbourne… Sydney’s median house value is still above $1 million, so you’re typically going to be paying at least $1 million anyway.
Kevin: What was it like five years ago?
Cameron: Five years ago in Sydney, you’d be looking at around 20% of all houses sold were over $1 million. In Melbourne, it was about 8%. If we go back to somewhere like Brisbane, you’re talking about 3%, so it has increased quite significantly over that period of time.
Kevin: There you go. If you have a cool $1 million in your back pocket, there are lots of places for you to spend it around Australia. Cameron Kusher from CoreLogic. Thanks for your time, Cameron.
Cameron: Thanks, Kevin.