The average home market, which entered the million-dollar club over the past 12 months, fell about 2.3 percent in value in the three months through August, less than the 3.4 percent decline nationwide.
Their average median value is $1,069,674, suggesting that values would need to drop another 6.5 percent on average to fall back below $1 million, according to Ms. Owen.
I wouldn’t be surprised if the number of million-dollar home markets shifted downward in the coming months.
— Eliza Owen from CoreLogic
But the gains could be temporary for many, as higher interest rates could knock several suburbs off the list if price falls accelerate.
“I wouldn’t be surprised to see the number of million-dollar housing markets shift down in the coming months given the pace of rate hikes,” Ms. Owen said.
“As long as interest rates are rising, we see property values falling more broadly. This would result in more markets falling out of the million dollar categories.”
Across New South Wales, 519 suburbs now have a median home price of $1 million, an increase of 66 suburbs, or 14.6 percent, from the year ended August.
Queensland added 57 to its 187 suburbs, a 43.8 per cent increase from the previous year, while 28 suburbs in South Australia topped the million-dollar mark, bringing the total by 60.9 per cent to 74.
The ACT added 12 suburbs for a total of 49, WA added 9 suburbs to 59 and Tasmania added three suburbs to nine.
In Sydney, 21 suburbs in Blacktown’s outer ring areas, upper north coast, outer west and south west are now fetching average house prices in the millions as growth emanated from the more expensive markets in the more central part of the city.
These include the southwestern suburbs of Austral, Edensor Park and St. Johns Park, where home values over the past 12 months have risen 16.1 percent, 15.6 percent and 13.4 percent, respectively.
“These are still high-value markets. However, they can still cyclically underperform the more expensive markets in more central parts of Sydney,” Ms Owen said.
“So the fact that million-dollar housing markets have increased across Sydney may reflect, at least in part, the lagging nature of some of the metropolitan suburbs.”
In Melbourne, just four north-west and south-east suburbs, including Pearcedale, New Gisborne and Clarinda, joined the million-dollar club after prices rose 7.1 percent, 2.1 percent and 2 percent, respectively.
Brisbane added 36 new million-dollar suburbs, with the majority hailing from the south, west and east of the capital. Among them are Park Ridge South and Chambers Flat in the Logan-Beaudesert area and Parkinson in the south, where home values rose 31.9 percent, 26.9 percent and 26.5 percent, respectively.
In contrast, the number of million-dollar median housing markets nationwide is down six suburbs to 99, or 5.7 percent year-over-year.
Suburbs that have fallen below the million-dollar unit mark include relatively affluent areas such as Pymble, Wahroonga on Sydney’s upper north coast, Dee Why on the lower north coast and Beecroft in the north.