New research released yesterday has confirmed the top end of Australia’s property market has been hit hard by the economic crisis.
The number of million dollar plus suburbs (based on the median price) across Australia shrank from 152 to 134 in the past 12 months, according to RP Data, a contraction of more than 12 per cent.
In New South Wales alone eight suburbs fell below the $1 million mark.
Long established suburbs such as Lane Cove, Willoughby and Malabar were three that slipped outside the watermark.
In percentage terms Western Australia had the most elite suburbs slip out of the $1 million club, with six suburbs – or 21 per cent – decreasing in value.
WA was also home to the four suburbs with the largest falls: Ardross’ median house price, for example, slipped by 26 per cent to $772,500.
In Victoria five suburbs dropped out of the $1 million bracket while Queensland and South Australia bucked the trend with both seeing one new suburb climb over the $1 million mark.
RP Data senior research analyst Cameron Kusher said the figures were not surprising considering the impact the financial crisis has had on superannuation, equity markets and premium property prices.
RP Data anticipates further weakness in the top end as economic instability keeps buyers clear of properties over $1 million.
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