As dwelling values broadly rise, the proportion of lower priced homes selling is falling, the number of homes selling with a price tag of at least $1 million has boomed over recent years.
Over the 12 months to June 2016, 14.0% of all house sales and 7.3% of all unit sales were at a price of at least $1 million. To put these figures into perspective, just five years ago 7.5% of all house sales and 4.0% of all unit sales were within this price point.
The combined capital cities have predictably seen a much higher proportion of sales of at least $1 million over the past year. Across all house sales, more than 1 in 5 sales (20.9%) were for at least $1 million compared to 8.9% of all unit sales.
Annual proportion of house and unit sales
of at least $1 million, combined capital cities
In the regional areas of the country housing sales prices are typically lower than they are in capital cities. Another trend of note is the fact that the difference between the proportion of house and unit sales of at least $1 million is much narrower. In regional areas you tend to find that units are only located in larger regional markets and often are positioned in relatively expensive in waterfront locations. The historical chart shows that often the proportion of unit sales at or above $1 million has been above that for houses. Over the past year, 3.3% of all regional house sales and 3.0% of all unit sales were at least $1 million.
Annual proportion of house and unit sales of
at least $1 million, combined regional markets
The final table highlights the proportion of sales of at least $1 million over the past year, a decade ago and 20 years ago. Over the past 10 years in particular there has been a substantial rise in the proportion of sales of at least $1 million. In Sydney over the past year more than 2 out of every 5 house sales was at least $1 million and in Melbourne, 1 in 5 house sales was at least $1 million. Interestingly, Sydney had a higher proportion of total unit sales of at least $1 million than the proportion of house sales at that price point in each city except for Melbourne.
Annual proportion of house and unit sales
of at least $1 million, individual capital cities
There is an element of bracket creep in the numbers, however, as the supply of affordable homes selling has declined significantly over recent years, an increasing proportion of stock is selling for a seven figure sum. Demand for premium housing and within the most expensive areas of the country remains buoyant which suggests that over the coming year the proportion of sales at a price point of at least $1 million will continue to rise.
