Now that the current property cycle is well underway (the market having bottomed almost 20 months ago) the prestige end of the market is performing strongly helping the rich become…well…richer.
As you can see form the graph below the premium sector of the housing market has gathered pace over the past six months and is now showing the highest capital gains compared with the broad middle segment and most affordable segments of the housing market.
Dwelling values across the most expensive quarter of the capital city markets were up 6.7 per cent over the past six months (compared with 5.8 per cent growth across the broad mid-market and 4.7 per cent growth at the most affordable quarter of the market).
Similarly, premium dwelling values have risen by 10.1 per cent over the past twelve months compared with a 9.5 per cent and 7.5 per cent capital gain across the mid-market and most affordable quarter of the market respectively.
There are more million dollar suburbs
The RP Data figures for January 2014 showed that 272 suburbs now have a median price of $1 million or more compared up form 188 suburbs at the the same time last year.
Of the million dollar suburbs with a median price of at least $1 million, the vast majority (56%) were in the Sydney property market and 20% of suburbs were located in Melbourne. These were followed by Western Australia (12%), Queensland (6%), South Australia (3%), Australian Capital Territory (2%) and Northern Territory (0.5%).
Here is the Rich List
|State||Suburb||Property type||Median Price Jan 2014||Median price Jan 2013||Capital growth $||12 month Growth||Gross Rental Yield|
Source: RP Data