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Research conducted by CoreLogic has revealed that the demand for million-dollar properties is steadily increasing.
The research shows that over the past year, 14 per cent of all house sales and 7.3 per cent of all unit sales have been priced at a minimum of $1 million.
Prices have almost doubled in the past five years – in 2011, 7.5 per cent of house sales were above the $1 million mark, with only 4 per cent of units coming in above this price point.
A majority of these higher priced properties are, unsurprisingly, located in capital cities: 20.9 per cent of houses sold over the past year in the capitals were above the $1 million price tag and 8.9 per cent of units.
Cameron Kusher, CoreLogic research analyst, said the gap between million-dollar houses and units is narrower in regional Australia.
“An emerging trend worth noting 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,” he said.
“In regional areas, we tend to see that units are only located in larger regional markets and often are positioned in relatively expensive waterfront locations.
"Over the past year, 3.3 per cent of all regional house sales and 3.0 per cent of all unit sales were at least $1 million," he said.
Mr Kusher added that over the past 10 years, the market has seen a substantial rise in the number of properties being sold for more than $1 million.
According to the data recorded by CoreLogic, in the past year more than 2 out of every 5 houses sold was for more than $1 million, while in Melbourne it was 1 out of every 5 houses sold.
For Sydney, this is an increase on 11.6 per cent of houses 10 years ago, and on only 4 per cent of houses in Melbourne.
“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,” Mr Kusher said.
[Related: Buying in million-dollar suburbs on a ‘boutique budget’]
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