Australia’s million-dollar property market - John McGrath

Australian property has proven itself to be one of the most successful ways to build wealth for generations.

A new report from Cotality, formerly CoreLogic, reveals more than four in 10 homes across the combined capital cities now have a median value of $1 million or more.

To be exact, a record 41.6% of capital city homes are worth $1 million-plus, up from 14.3% only ten years ago. In regional Australia, almost one in five homes are now worth $1 million-plus, up from 0.5% a decade ago.

The data busts the perception that Sydney is Australia’s only wealthy market. But of course, Sydney does have the biggest portion of homes at this price level, at just under 65% of stock.

As Cotality points out, just 10 years ago only houses with five or more bedrooms had a median value over $1 million in Greater Sydney.

Now, the median value for all types of houses is over $1 million. It’s $1.3 million for three bedroom houses and $2 million for five bedroom houses.

After a stellar run since the pandemic, home values in Brisbane have grown to such an extent that 40.2% of the city’s homes are now worth $1 million or more. This is up from just 6.2% five years ago and 2.8% a decade ago.

South-East Queensland is undoubtedly the most prized destination of choice for interstate migrants who can work from home. People have flocked to the Sunshine State from all over the country since 2020 for the warmer weather, relaxed lifestyle and greater affordability.

Brisbane, the Gold Coast, and the Sunshine Coast have been especially popular with interstate migrants and investors, too. I’m currently on the Gold Coast for the 27th annual Australasian Real Estate Conference (AREC), with guest speakers including the 49th Vice President of the United States, Kamala Harris, and one of the world’s most influential leaders in real estate Mauricio Umansky.

I’ve noticed much activity locally as Queensland prepares to host the 2032 Olympic and Paralympic Games. Major new investment in roads, sporting facilities and transport is revitalising many residential suburban areas, creating more attractive and valuable neighbourhoods to live in with legacy benefits for the locals to enjoy for decades to come.

In terms of the other East Coast capital cities, 30.9% of homes in Melbourne are worth $1 million or more, and in Hobart, it’s 11.9%. Canberra was not included in the data.

The rising number of Australian homes worth $1 million or more reflects the prosperity of our nation. It also reflects a strong continuing cultural belief that home ownership is a worthy lifetime aspiration, and a cornerstone financial asset for a comfortable retirement.

But we can’t ignore the downside of having one of the world’s most high-value markets. Affordability is a big challenge for younger generations, which is why it’s so important to research all the state and federal government help available to help you buy a home sooner.

Last week’s second interest rate cut for 2025 has likely improved your borrowing capacity, too. With economists tipping more cuts ahead, it’s a good time to talk to a mortgage broker.