$2million is becoming the new $1million

The Melbourne property market is driving a national spike in $2million+ property prices.

Not that long ago, $1 million guaranteed the purchase of an exceptional family home – a property where you could settle in and expect to be comfortable for life, only looking to down size when the nest became empty.

Over the past 12 months until June, the national figure for the number of properties selling for greater than $2 million exceeds 11,000 according to figures released by Core Logic. And this is more than double the number from five years ago. Twenty years ago, there were just 236 $2 million + sales across Australia.

The breakdown between houses and units in the $2 million+ range shows 9,882 were house sales and 1,437 were units. The largest concentration, not surprisingly, was in Sydney and Melbourne. Australia’s other states and territories combined represent only one tenth of all $2 million+ house sales and a quarter of $2 million+ unit sales in the past year.

In the June 2016 quarter, the REIV has released figures showing that there were five Melbourne suburbs that recorded a median price of greater than $2 million*.

Core Logic’s Cameron Kusher says this data provides dramatic evidence that the cost of housing in Melbourne and Sydney is detaching itself from the rest of the country.