Millionaires' Row: 218 suburbs join the million-dollar club as property values soar

More than 200 suburbs have joined the million-dollar club over the past year as property values have soared, new figures show.

A quarter of these were in booming Sydney, but the gains are spread widely around the country, including in regional areas, as the housing market has risen.

Ultra-low interest rates have been fuelling the increase, combined with a recovering economy, government stimuli and a lack of homes for sale. Remote workers seeking a tree-change have also pushed up prices in regional areas.

The median value passed $1 million in 218 markets in May, compared to a year earlier, CoreLogic research found. These included 198 house markets and 20 unit markets.

In comparison, there were just 98 suburbs in the million-dollar club in October 2017, about the same time as the last property market peak.

Despite the wealth effect, which makes homeowners feel wealthy when the value of their home rises and prompts them to spend more money on consumer goods, CoreLogic head of research Eliza Owen warned of the downsides.

“For first-home buyers, who tend to be more price-sensitive, higher house prices and the volume of suburbs becoming million-dollar markets are likely building on the challenges already faced by these prospective buyers around home ownership and affordability,” she said.

“April marked the third consecutive month of decline in finance secured for the purchase of property by first-home buyers.”

In Sydney, the top seven newcomers to Millionaires’ Row were all on the Central Coast, where the market has surged as city dwellers realised they could work remotely for part of the week.

North Avoca has a median house value of $1,466,568 as of May, a staggering jump from its median of $991,507 a year earlier, the research found.

It was followed by Copacabana, Bensville, Wamberal, St Huberts Island, Forresters Beach and Terrigal, which all had median values above $1.28 million.

Regional NSW recorded big jumps in Lennox Head ($1.4 million), Skennars Head ($1.38 million) and a string of suburbs in the Illawarra: Kiama Heights, Gerringong, Kiama and Bulli, all above $1.29 million.

In Melbourne and surrounds, tree-changers have been pushing prices higher for a pad in the bush or by the beach.

Mount Macedon jumped into the million-dollar club with a median house value of $1,319,881 for May, from $961,495 a year earlier.

Newcomers on the Mornington Peninsula included Blairgowrie, Somers, St Andrews Beach and Balnarring, all north of $1.17 million.

In regional Victoria, Surf Coast values jumped, with Jan Juc, Queenscliff and Torquay above $1.15 million.

Queensland buyers were keen on inner-city Brisbane (Ashgrove, Norman Park and Seven Hills) as well as Buddina on the Sunshine Coast and Palm Beach on the Gold Coast.

New millionaires in Perth were found in Marmion and Salter Point.

Suburbs in smaller cities also joined the club, including Adelaide’s Glen Osmond and Canberra’s Hughes.

Housing values measure the estimated value of properties across a suburb, not only the homes that have sold within the specified time frame.