The number of suburbs in Australia with median house prices of more than $1m increased by more than a third last year.
Research from RP Data has discovered that the average price now stands at over a million dollars in 212 suburbs – an increase of 35% during 2010. Fifty-six per cent of those are in Sydney, with a further 20% in Victoria. However, Perth's Peppermint Grove still holds the crown as Australia's most expensive suburb, with a median price of $4.6m.
"Over the past five years, the premium sector has typically fared quite well and has recorded strong growth in property values," said RP Data researcher Cameron Kusher. However, he was less bullish about more suburbs breaking through the million-dollar mark this year.
"During 2011 we would expect that there is unlikely to be a further 35% increase in the number of suburbs within the $1m club. We are anticipating subdued residential property market conditions during the year and the premium sector’s performance will also likely be impacted by high interest rates and ongoing global economic uncertainty," he added.
"These conditions are likely to hamper purchaser confidence and reduce the propensity of buyers to spend in excess of $1 million."