Australia’s property market has reached a new milestone, with more suburbs than ever now carrying a median value of $1 million or more. According to recent research from property insights firm Cotality, one in three Australian housing markets has officially joined the “million-dollar club.”
More Markets Join the Million-Dollar Club
The report found that as of September, 34.1% of all property markets across the country have a median value of at least $1 million — a record high, and a big jump from 30.3% just a year earlier.
What’s even more striking is how fast this shift has occurred. Over the past five years, the number of million-dollar suburbs has grown by 143%, as property values nationwide rose by almost 47% — that’s roughly $270,000 at the median level.
Once concentrated in Sydney’s prestigious Northern Beaches and Eastern Suburbs, seven-figure price tags are now becoming the norm in more diverse regions. Suburbs in Brisbane, Canberra, and even outer-metro areas like Penrith in Sydney and Taylors Lakes in Melbourne have now joined the list.
When “Prestige” Becomes the New Normal
What used to be an exclusive benchmark for high-end areas is now a reality for many average suburbs. Cotality’s economist, Kaytlin Ezzy, highlighted how house prices above $1 million are no longer limited to luxury postcodes — they’re now seen in outer regions where families traditionally sought affordability.
In Sydney, only 15% of suburbs have a median house value under $1 million, mainly in the city’s western and Central Coast areas. Meanwhile, Brisbane and Canberra have both seen their broader housing markets cross the seven-figure threshold for the first time.
Even some unit markets are catching up — 13.5% of unit suburbs nationwide now sit above $1 million.
Affordability Under Pressure
The rise in million-dollar suburbs is good news for homeowners who are seeing strong capital growth — but for new buyers, the story is quite different.
Cotality’s report revealed that a household earning the average income of $106,000 would need to spend more than half of their pre-tax income to service a loan on a $1 million home with a 20% deposit. For those relying on a 5% deposit under the First Home Guarantee scheme, that figure jumps above 60%.
This growing gap has made it harder for first-home buyers to enter the market. Many are needing larger deposits or parental assistance, and some are waiting longer to buy — resulting in the average age of first-home buyers continuing to climb.
What It Means for Homeowners and Buyers
For existing property owners, the rise in home values offers opportunities to leverage equity and expand investment portfolios. As prices climb, more homeowners are choosing to refinance or access equity for property investments, renovations, or debt consolidation.
However, brokers and financial professionals continue to stress the importance of education and planning. Understanding borrowing limits, structuring loans wisely, and staying realistic about property goals are key steps in navigating this competitive market.
With demand still high and supply remaining tight, experts predict that property values will keep rising into 2025. At the current rate of growth, more than 80 new suburbs are expected to join the million-dollar club by the end of the year.
While that may sound daunting for those still saving for a deposit, there are still pathways forward — especially with the right financial strategy and broker guidance.
As property prices continue to climb, expert guidance has never been more important. The team at QMP Financial helps clients explore the right loan options, understand their borrowing power, and create tailored strategies to make the most of current market conditions.
Whether it’s preparing to buy, refinance, or invest, QMP Financial ensures every client is supported with the right advice at every stage of their property journey.
Contact us today to discuss your options and find out how we can help you move confidently in today’s property market.