Regional Housing Sales Increasingly Hit The $1 Million Mark

While politicians and property experts encourage Australians to look to regional areas amid the ‘housing affordability crisis’ in capital cities, new data shows that regional housing markets are increasingly selling for at least $1 million.

Regional areas hit million dollar house prices

New research from property experts CoreLogic shows that over the past 12 months to June, the number of houses in regional areas selling for a minimum of $1 million has increased from 3.5% to 4.1%.

Unit sales of at least $1 million in these areas have also increased from 3.2% in June 2016 to 3.5% in June 2017.

As the cost of housing has continued to rise across most of the country in the past year, the proportion of homes selling above the $1 million mark has lifted, according to CoreLogic.

“The flip-side of 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,” says Cameron Kusher from CoreLogic.

“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.”

In the past year, 15.4% of all house sales and 8.8% of all unit sales across Australia were priced at a minimum of $1 million, up from 14.4% and 7.5% respectively in June 2016.

Regional areas annual sales

Source: CoreLogic

Capital cities also hitting high sales

The instances of residential properties selling for over $1 million in capital cities nationally is still much more pronounced than in regional areas.

In the past 12 months to June 2017, nearly a quarter (23.2%) of all houses and 10.8% of all units in capital cities sold at or above the million dollar mark.

It comes as no surprise that the highly competitive housing markets of Sydney and Melbourne show “substantially more” properties selling for the big bucks.

According to CoreLogic, annual Sydney house sales of at least $1 million have increased from 13.8% to 47.8% over the past 10 years,  while units are up from 4.7% to 21.3%.

In Melbourne, house sales at this price level have increased from 5.8% to 25.9%, and unit sales from 2.7% to 7.4% over the past 10 years.

Perth is the only capital city in Australia that did not see an increase in unit sales of more than $1 million in the past decade, recording a lower proportion in 2017.

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