Million dollar property sales take a hammering

From CoreLogic’s Cameron Kusher:

Over the 12 months to June 2019, 12.5% of all houses and 8.0% of units sold nationally transacted for at least $1 million. The share of million dollar house sales was down from 14.7% a year earlier and was also well down from its peak of 15.0% of all sales in March 2018.

For units, the 8.0% share over the past year was lower than the 9.4% a year earlier: the fall in million dollar sales over the past year reflects the overall weaker housing market conditions and the fact that higher valued properties have typically recorded the greatest value falls.

Combined capital cities, 18.4% of all houses and 9.8% of all units sold over the 2018-19 financial year sold for at least $1 million: the share of million dollar house sales was down from 21.9% a year earlier as well as being below the peak of 22.3% of all sales in March 2018. The 9.8% of million dollar unit sales was down from 11.5% a year earlier and was the lowest share since October 2016.

Far fewer properties sell for at least $1 million in regional markets as opposed to capital cities: Over the 2018-19 financial year, 4.1% of all houses and 3.3% of all units sold in regional Australia transacted for at
least $1 million. While the share of million dollar house sales was marginally lower over the year (down from 4.5%), the share of unit sales was marginally higher than the 3.2% a year earlier.

Sydney: While a substantial volume of houses and units sold in Sydney are at least $1 million, the share has seen a steady fall over recent years as dwelling values have declined. Over the 2018-19 financial year, 30.2% of all house sales were at least $1 million which was down from 34.2% a year earlier and the smallest share since October 2014. For units, 18.9% of sales were at least a million dollars of the 2017-18 financial year compared to 16.4% over the latest financial year. The 16.4% of unit sales $1 million or greater was the smallest share since the 12 months to January 2016.

Melbourne also recorded a slump in million dollar sales over the past year as values have continued to fall. Over the 2017-18 financial year, 29.0% of all house sales and 7.8% of all unit sales were at least $1 million.
Over the past financial year, the share of million dollar sales had reduced to 23.1% for houses and 6.5% for units. The larger falls across higher value housing markets and tighter credit conditions have clearly limited
transactions at prices above $1 million…

In closing, Cameron Kusher said, “Over recent months we have started to see some stabilising of housing market conditions. The data also shows that the largest improvement is occurring across the most expensive properties. Assuming this continues over the remainder of the current financial year the share of million dollar sales, particularly in Sydney and Melbourne, may increase over the coming year.”

On the last point, CoreLogic’s August chart pack shows that the premium end of the market suffered the biggest declines in the year to July, but have also led the recovery over recent months:

 

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