This article was originally published by Jordan Marshall on the 31 OCt 2016 via heraldsun.com.au
MORE than 900 Melbourne homes have sold for at least $2 million this year, as the $1 million price-tag is overtaken as the benchmark of luxury.
Across the country more than 11,000 properties have sold for in excess of $2 million in the past 12 months, according to CoreLogic.
CoreLogic research analyst Cameron Kusher said this growth represented a shift in the market, largely created by the strong performances in Melbourne and Sydney.
“A home selling for or in excess of $1 million was once the domain of the wealthy and indicative of the luxury housing market, sales of or in excess of $1 million are becoming much more regular,” Mr Kusher said.
“Perhaps $2 million is the new $1 million?”
The increased frequency
of seven-figure sales was underlined in the most recent data release by the Real Estate Institute of Victoria, which saw 104 Melbourne suburbs achieve a median price of $1 million-plus.
Over the 12 months to June 2016, there were 11,319 houses and units sold nationally for at least $2 million — 10 years ago there were only 3254 sales.
Sales at this price point have surged substantially higher across the two largest capital cities over recent years, while they remain lower than their previous peak across the combined other capital cities.
According to Mr Kusher, this is just another example of how the cost of housing in Melbourne and Sydney is detaching itself from the rest of the country.
Morrison Kleeman Eltham director Rocco Montanaro agreed a competitive market place had made $2 million the new benchmark.
“Supply being strongly outweighed by demand, combined with skyrocketing prices in the inner-city suburbs, has seen $2 million reached more frequently in outer areas as well,” Mr Montanaro said.
An example of this is Lower Plenty, where CoreLogic recorded 10 sales in excess of $2 million in the 12 months to June 2016.
The luxurious five-bedroom property at 5 Lakeside Drive, Lower Plenty, is on the market with price expectations of $3.8 million to $4.2 million.
“People have seen the soaring results and those seven-figure results become increasingly expected,” Mr Montanaro said.
Interested in learning more about property investing in Australia? Please visit our main website InvestorsPrime.com.au for loads of free resources, articles, videos and more to help you on your investing journey.