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Sales of $1M homes in Melbourne are through the roof

April 11, 2018 10:00 am by Upside

Property millionaires are a dime a dozen in the Melbourne housing market these days, with more million-dollar sales happening around the city than ever before.

The latest figures from CoreLogic show that 28.3% of homes in Melbourne sold for $1 million or more in 2017 – an increase from 23.7% in 2016. The share of $1 million home sales has also skyrocketed from five years ago when just 9.7% of houses sold for at least $1 million.

Units in Melbourne have also seen a significant uptick in properties worth more than a million, jumping from 3.5% in 2012 to 7.2% in 2016 to 8.3% in 2017.

Melbourne’s house price figures are much higher than overall nationwide housing values. By contrast, only 16.1% of all houses and 9.5% of all units sold nationally attracted a price tag in excess of $1 million during 2017. National growth has also been much slower than Melbourne, as 12 months prior 14.8% of houses and 8.1% of units sold for more than $1 million.

CoreLogic’s state director for Victoria, Geoff White, told news.com.au that he expects Melbourne property prices to keep climbing through 2018.

“You can’t get into some suburbs without $1 million now. It’s run of the mill,” White said.

“Five to 10 years ago, it was considered a benchmark.

“It won’t be long until we’re saying $1.5 million will be the minimum spend.”

Within the inner suburbs of Melbourne, White said that a select few houses were still available for six figures — but they were mainly confined to the west and north, and many of the homes were “still nudging $900,000”. This is in line with median house prices in Melbourne shooting up 3.2% to $903,859 in the December quarter, according to the Domain Group’s latest State of the Market report.

Looking at middle and outer suburbs, White said suburbs east and southeast of the CBD in particular, such as Berwick and Bentleigh East, were seeing an increase in $1 million-plus property sales.

In contrast to this, Sydney – Australia’s most expensive housing market – has seen values begin to fall, particularly for higher value properties, so there is a possibility that the city will see a decline this year in the share of sales of at least $1 million.

So, while the tide may be turning for the Sydney housing market, property owners in Melbourne are looking to secure favourable prices on property sales throughout the year ahead.

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