The June edition of Your Investment Property magazine takes a look at the $1M property markets around Australia. The stats were compiled by Core Logic and I catch up with Cameron Kusher from Core Logic to discuss the results.
Listen to the interview now:
Transcript:
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.
Real Estate Talk – the only place where you hear all Australasia’s leading property experts.
Originally published as: https://realestatetalk.com.au/1m-property-markets-cameron-kusher/
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Kevin Tuner worked in radio as General Manager of various east coast radio stations. He started in real estate in 1988 and was ranked in the Top 10 Salespeople in the state until he was appointed as State CEO 1992.
He operated a number of real estate offices as business owner and was General Manager of several real estate offices in Christchurch.
He now hosts a real estate show on Radio 4BC and a weekly podcast at www.realestatetalk.com.au. He is the host of a daily 7 to 10 minute podcast show for real estate professionals at www.reuncut.com.au.
To hear more podcasts by Kevin Turner, click here
Disclaimer: while due care is taken, the viewpoints expressed by interviewees and/or contributors do not necessarily reflect the opinions of Your Investment Property.
