$1 million has significant purchasing power for many aspects of life. It represents a lifetime of family groceries, 75 years of transport costs, or even smashed avocado for breakfast every day for over 100 years.
However, in the Australian housing market, $1 million is increasingly common. The median house value in Australia’s combined capital cities has surpassed this mark, and over a third of Australian homes are now valued at $1 million or more.
Increase in Million-Dollar Homes
The proportion of dwellings valued at $1 million or higher has risen substantially.
| Time Period | National Homes Valued at $1 Million or More | Combined Capital Cities | Regional Australia |
|---|---|---|---|
| April 2015 | 9.7% | 14.3% | 0.5% |
| April 2025 | 34.4% | 41.6% | 19.4% |
Values have appreciated by 67.3% over the last ten years, reflecting a strong upward trend.
Significance and Challenges of a $1 Million Market
Million-dollar housing markets indicate national wealth and prosperity. Homeowners reaching millionaire status can open up new investment opportunities or access wealth through property sales.
However, this price point presents challenges:
- Homeownership rates have declined, particularly among younger, low-income households.
- The average age of first-home buyers has increased.
- Renters are staying in the rental market longer, increasing competition.
- Housing debt has risen relative to wages.
Location is crucial for investments, favoring established housing markets.
Despite the challenges, owning a home is still attainable. It requires strategic planning, informed decisions, and potentially adjusting expectations or locations. While the $1 million market is a reality, it does not make homeownership impossible. The key is to be prepared for the next wave of housing supply that is both reachable and future-proof.
Strategies in a Million-Dollar Market
Seeking Professional Advice
Consulting a financial adviser or mortgage broker can provide personalised guidance. They can assess your financial situation, explore various loan options, and offer strategies tailored to your needs, such as budgeting, saving, and investment.
Buying Off the Plan
Purchasing property off the plan might be a viable option, especially when interest rates are anticipated to decline. Securing a property at today’s prices while future lower rates reduce mortgage repayments could be advantageous.
Exploring Regional Markets
Consider looking into regional areas where property values are lower than in major cities. Many regional markets offer affordability and potential for growth. This could be an alternative way to enter the property market without needing a million-dollar budget.
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