A growing share of Australia’s property market now boasts million-dollar median values, with Cotality’s Million Dollar Market report revealing that one in three (34.1%) housing and unit markets had a seven-figure median in September – a record high.
Cotality analysed 4,844 markets nationwide and found 154 new and 41 returning million-dollar markets this year, while just 11 fell below the threshold. That marks a sharp rise from 30.3% a year earlier and continues a long-term trend – in 2020, just 15.2% of national sales were above $1 million, compared with 30.8% in the latest year.
Cotality economist Kaytlin Ezzy (pictured) said the million-dollar label is losing some of its prestige as membership surges to new highs.
“Five years ago, just 14% of Australian suburbs were members of the million-dollar club… Since then, dwelling values nationally have risen by 46.8% or roughly $270,000 at the median level and membership in the million-dollar club has increased by 142.9%,” Ezzy said.
The surge in million-dollar markets coincides with a broader lift in property values nationwide. According to Cotality’s October Monthly Housing Chart Pack, the total value of residential real estate has climbed to a record $11.8 trillion, rising by $678 billion over the past 12 months as national dwelling values increased 2.2% in the September quarter and 4.8% annually.
Brisbane recorded the largest net increase in million-dollar markets, with 37 new suburbs joining the club, ahead of Sydney’s net gain of 36. Seven in 10 Sydney markets now hold median values above $1 million.
Ezzy said the profile of the million-dollar market is shifting away from traditional prestige areas.
“Some newly minted million-dollar markets include more mortgage belt suburbs like Sydney’s Penrith and Melbourne’s Taylors Lakes, along with Oxley in Brisbane’s Ipswich region and Upper Coomera in the Northern Gold Coast,” she said.
“Seven-figure markets are no longer confined to prestigious suburbs, with their reach expanding more broadly.”
The report found that only 15% of Sydney suburbs now have median house values below $1 million, mainly in the western mortgage belt and Central Coast. In Brisbane and Canberra, median house values have also crossed the million-dollar threshold.
By contrast, Regional Victoria was the only area to record a decline, with just 11 of 278 suburbs holding median values at or above $1 million — one fewer than last year.
While million-dollar markets are becoming mainstream, affordability is eroding for first-home buyers.
“A household on the average income of $106,000 with a 20% deposit would need to dedicate more than 50% of their pre-tax earnings to service a loan on a million-dollar property,” Ezzy said.
“This increases to more than 60% if they’re using the First Home Guarantee scheme’s 5% deposit, a repayment-to-income ratio few brokers will approve.”
She said that although financing remains accessible for some, rising prices continue to push ownership out of reach for many younger and lower-income households.
“While the sheer prevalence of seven-figure property values suggests that many can still access financing, the average age of first-home buyers has continued to creep higher, while home ownership rates have steadily declined,” Ezzy said.
Cotality expects momentum to continue as tight supply and government incentives drive further growth.
“With tight supply levels and additional demand from the expanded First Home Guarantee scheme, values are expected to continue an upward trajectory through 2025,” Ezzy said.
“At their current quarterly rate of growth, over 80 markets are on track to join the million-dollar club by year’s end.”
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