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A record number of Australians spent seven digits to secure a home in the past year with 56 Perth housing markets cracking the million dollar list in May, up from 43 the year prior.
CoreLogic’s annual Million Dollar Markets report revealed nine of Perth’s top 10 most expensive house markets were located in the city’s inner region, where Dalkeith recorded the highest median value at $2.96 million. It was closely followed by Peppermint Grove, Cottesloe and City Beach.
This four-bedroom, three-bathroom home in Dalkeith sold for $3.7m earlier this month.Credit:Domain
Report author, CoreLogic research analyst Kaytlin Ezzy, said homes in Yallingup remained the west’s only regional market to make the million-dollar list, with a current median value of $1.62 million.
The report also revealed the portion of house sales in Perth at or over $1 million had doubled over the past decade to now represent 11 per cent of sales.
Ezzy said Australia’s bullish economic and property performance during the latter part of 2021 had led to a record result for both the volume of transactions and the proportion of million-dollar sales.
“High consumer sentiment, tight advertised supply, and low-interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4 per cent over the 12 months to January,” she said.
“Despite values having risen across all capital cities and rest of state areas annually, we have seen a divergence in growth conditions across markets over the year to date.
“Since January, dwelling values across Sydney and Melbourne have started to decline, while values have continued to rise across Perth, South Australia and Queensland.”
Significant trophy sales in some of the country’s top prestige markets have been recorded in the year to date, including the $60 million transaction of a waterfront home in Darling Point in Sydney’s eastern suburbs.
Lisa Allen, former wife of yachtie Matt Allen, has sold her Darling Point trophy home.
In Melbourne, a five-bedroom property in Orrong Road, Toorak sold for $38.5 million in February to Ed Craven, the 26-year-old co-founder of one of the world’s biggest online cryptocurrency casinos, Stake.com.
The highest sale price this year for Perth was 26 Jutland Parade in Dalkeith. The home in the affluent western suburb was sold to COVID-19 test importer Matthew James Fry and his wife Anna Katarzyna Fry for $16.5 million.
Australia’s trillion-dollar real estate market
The total value of the national real estate market rose to $9.97 trillion in May, with residential real estate accounting for 57.6 per cent of households’ wealth though the March 2022 quarter.
REIWA president Damian Collins said it was expected that WA’s strong market conditions would last for some time, largely fuelled by the state’s strong economy, 1.2 per cent expected growth in population and the ongoing housing shortage.
“We simply don’t have enough stock to keep up with demand,” he said.
“For as long as this is the case, we will continue to see high competition amongst buyers, low median selling times and price growth in WA.”
Ezzy said high non-discretionary inflation coupled with rising interest rates would likely see household budgets tighten in the coming months dampening housing demand over the medium term.
“As the market moves into the downward phase of the cycle it’s likely a number of the recent entrants to the million-dollar list will see their median values decline below the $1 million mark,” she said.
“Despite this, Australian household wealth hit record high levels at the end of the March quarter, driven by continued strength in the housing market largely driven by gains across the real estate sector.”
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