Current Property News - Market Commentary

Despite the market taking a bit of a hit in recent years courtesy of the GFC, the number of suburbs reaching million dollar status nationally has hit its highest point in five years according to property research firm RP Data. A total of 212 suburbs are now recording a median price of $1 million dollars or more with Peppermint Grove maintaining its prime position for the third year running as the most expensive suburb in the country with a median house price of $4.6 million.

"With a median house price of $4.6 million, Peppermint Grove is almost $1 million more expensive than the second placed suburb, Vaucluse in Sydney ($3,787,500)," RP Data said.

Data showed that as of the December quarter last year there were 55 more million-dollar suburbs than the previous year and 134 more than in 2005.

"Today's results highlight that not only has demand and price growth been strong for premium property, but they also indicate that residents are prepared to pay the hefty price to secure a property in a premium location," RP Data research analyst Cameron Kusher said.

For Perth, just four suburbs entered the million-dollar club in 2005. Since then, the number of suburbs continued to rise steadily to a peak of 25 suburbs in 2008. In 2009, the GFC took its toll on property prices and reduced the number of suburbs back to 18. Despite the sluggish market in 2010, the number of suburbs with million dollar median’s catapulted to its highest peak in five years of 26 suburbs.

Of the 212 suburbs that made the nation’s million-dollar rich list, 56 per cent were in Sydney, 20 per cent in Victoria, 12 percent in Western Australia and 6 per cent in Queensland. The other states and territories (excluding Tasmania) made up the remaining 6 per cent. Three Perth suburbs – Peppermint Grove, Dalkeith, and Cottesloe – were rated in the top 20 most expensive suburbs in the nation.