Multi-million-dollar homes have become the new normal in Sydney

By Michael Mata

Multi-million-dollar homes have become the new normal in Sydney

A decade ago, million-dollar homes in Sydney were confined to a handful of prestigious suburbs. Today, houses achieving seven-digit figures account for 13.7% of homes sold in the Harbour City, according to the Domain Group.

Rising demand and low interest rates, coupled with double-digit price growth, have led to an explosion of multi-million-dollar home sales.

Sydney’s median house price initially broke seven digits in the June quarter of 2015 and has remained above this benchmark ever since, according to Nicola Powell, data scientist for the Domain Group.

Over the past three years, the proportion of houses selling for millions of dollars has grown rapidly.

In 2014, houses that transacted above $2m accounted for 5.9% of sales throughout the year; by 2016, the proportion had risen to 11.1%.

“By 2017, the volume of homes that sold for more than $2 million stood at 13.8 per cent; a decade ago it was only 3.5 per cent,” Powell said.

Certain areas have a larger proportion of multi-million-dollar homes, with the biggest change evident in the lower north shore.

“One-tenth of houses sold in the northern beaches achieved more than $2 million during 2007. Fast-forward 10 years, and this has grown to just over two-fifths,” Powell said.

“What a difference a decade can make in real estate,” she concluded.

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