Once a symbol of prestige, a million-dollar price tag is becoming more common as rising values push more Australian suburbs into the seven-figure club.

Cotality's latest Million Dollar Market report analysed 4,844 markets (3,514 houses and 1,330 units) across the country and found that one in three (34.1%) recorded a median house or unit value of $1 million or more in September.  

A new record-high, this is up from 30.3% this time last year, with the million-dollar club welcoming 154 new and 41 returning members, while 11 relinquished their membership card.

The report also found that properties with a seven-figure price tag accounted for 30.8% of the national sales over the year to September, more than double the 15.2% they comprised in the same period in 2020.

Cotality Economist Kaytlin Ezzy said the million-dollar benchmark is losing some of its relevance as membership in the seven-figure club reaches record-highs.

“Five years ago, just 14.0% of Australian suburbs were members of the million-dollar club, with the majority concentrated in Sydney's prestigious Northern Beaches, Eastern Suburbs, and North Sydney and Hornsby regions.

“Since then, dwelling values nationally have risen over by 46.8% or roughly $270,000 at the median level and membership in the million-dollar club has increased by 142.9%.

“Today 41.9% of house and 13.5% of unit suburbs nationally claim a spot on the once prestigious million-dollar list, with seven-figure price tags becoming more common place.

“Just 15% suburbs in Sydney now have a median house value under the $1 million mark, all located in the city's western mortgage belt and Central Coast region.

"Meanwhile, median house values in Brisbane and Canberra's broader capital city regions have crossed above the seven-figure threshold.”

Newly minted markets

 Brisbane led the capitals and rest of state regions, recording the largest net change in million-dollar markets over the year, with one re-entrant and 37 new markets joining the club. This was followed by Sydney, where seven in ten markets now has a median house or unit value above $1 million, with a net increase of 36 markets.

Ms Ezzy pointed out the face of the million-dollar market is changing, with many of the new entrants into the million-dollar club located in suburban fringes – areas that haven't typically been associated with prestige property historically.

“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.”

“Seven-figure markets are no longer confined to prestigious suburbs, with their reach expanding more broadly.”

At the other end of the spectrum, Regional Victoria was the only capital city or rest of state region to record a net decline in million-dollar markets. In September, only 11 of 278 suburbs analysed had a median value at or above the $1 million mark, down one relative to this time last year.

Priced out of entry

 Ms Ezzy highlighted that as more suburbs cross the million-dollar threshold, concerns regarding affordability and equality will only intensify, especially 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.

“This increases to more than 60% if they're using the First Home Guarantee's schemes 5% deposit, a repayment-to-income ratio few brokers will approve.”

Despite million-dollar sales becoming more mainstream, Ms Ezzy said homeownership is increasingly moving out of reach for the next generation.

“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, particularly among younger and lower-income households whose earnings struggle to keep pace with rising housing prices.”

“With tight supply levels and additional demand from the expanded First Home Guarantee scheme, values are expected to continue an upward trajectory through 2025, which will likely see more suburbs cross the seven-figure threshold.

“At their current quarterly rate of growth, over 80 markets are on track to join the million-dollar club by year's end,” she concluded.

Cotality's Million Dollar Markets - state highlights 

NSW

• Sydney remains the only capital with a seven-figure median dwelling value ($1,241,054), with nearly 70% (612) of Sydney's house and unit markets in the million-dollar club. Over the year, 29 new entrants and 10 re-entrants joined the seven-figure, while three markets (St Peters, Centennial Park, Beecroft) saw their median unit value dip below the $1 million threshold.
• Regional NSW saw the highest number of re-entrants to the million-dollar club, with 18 markets (14 house and 4 unit markets) regaining a seven-figure median.

VIC

• Melbourne added just seven new million-dollar markets, reflecting continued softness in growth, taking the city's total million-dollar list entries to 207 (196 houses, 11 units).
• Regional VIC was the only region nationally to record a net decline in seven-figure markets over the year, with houses in Wandana Heights rejoin the million-dollar club and Bright and Apollo Bay dropping below the threshold.

QLD

• Brisbane recorded the largest net increase in million-dollar markets nationally, with one returning and 37 new markets, bringing the total to 205.
• Regional QLD now has 141 million-dollar markets, with the majority concentrated in the Gold Coast (69) and Sunshine Coast (61). However, the broad-based nature of recent value growth seen a handful of house suburbs in other regions rise above the seven-figure threshold, including four in Toowoomba, three in Wide Bay, and one each in Townsville and the Whitsundays regio

WA

• Perth saw its million-dollar markets rise to 129 markets (126 house and three unit) in September. 19 suburb saw values rise above the $1 million mark for the first item over the year, while units in one suburb (Swanbourne, $1,086,578) rejoined the seven -figure club.
• Regional WA doubled its million-dollar markets from 6 to 12 all house suburbs. Bunbury claimed nine entries on the million-dollar list along with two suburbs in the North Wheat Belt region (Chittering and Lower Chittering ($1,138,366) and one in Albany (Kalgan).

SA

• 116 or 42.0% of the 276 suburbs analysed for houses across Adelaide recorded a current median value at or above the $1 million mark in September, up from 100 or 27.9% this time last year. None of the city's 82 unit markets recorded a seven-figure median.
• Despite a 10.4% annual increase in dwelling values, none of the 78 suburbs analysed across regional SA exceeded the million-dollar mark in September.

TAS

• Just four of Hobart's 48 house and 13 unit markets maintained their million-dollar membership all waterfront house markets, with Battery Point remaining the city's most expensive ($1.34M).
• None of regional Tasmania's 63 house and 11 unit markets reached the million-dollar mark, despite modest annual growth of 3.6%.

NT

• Darwin led national value growth, up 12.9% over the year, but remains the only region without a million-dollar market. Nightcliff came closest, with a median house value of $944,871, up 12.8% year-on-year.

ACT

• Canberra's median house value returned above $1 million in June, reaching $1,021,834 in September, with 55 (59.8%) of the 92 house suburbs analysed recording a million-dollar median. 
• Yarralumla in South Canberra is the only unit market with a seven-figure median at $1,233,304.