Major cities like Sydney, Brisbane, and Perth have seen substantial growth in their million-dollar suburbs, with Sydney leading by adding 46 new suburbs to this exclusive category.

To afford a home in these million-dollar suburbs, borrowers now need an annual income of about $200,000, assuming a 20% deposit, which has increased from approximately $125,000 before the first interest rate hike.

Despite Perth's impressive annual rise in dwelling values at 24.2%, its lower starting point has resulted in fewer new million-dollar markets compared to Sydney and Brisbane.

All of Perth's top ten most expensive house markets are located in the Cottesloe–Claremont sub-region, with Dalkeith boasting the highest median value at $3.5 million.

A recent CoreLogic report highlights a significant milestone in the Australian property market, revealing that 29.3% of nearly 4,800 suburbs now have median house or unit prices exceeding $1 million.

In contrast, Melbourne and regional Victoria have faced a decline in dwelling values by 1%, attributed to unfavorable investment taxation and an increase in housing supply.

Nationally, the percentage of suburbs with million-dollar values has risen from 21% in January 2023 to its current level, coinciding with the beginning of the rate-tightening cycle.

In August, a record number of suburbs reached this million-dollar threshold, with one-third of the 4,772 suburbs analyzed achieving median values of $1 million.

Perth ranked third among Australian cities for million-dollar suburbs, adding 35 new entrants and one re-entrant to the million-dollar club over the past year.

CoreLogic economist Kaytlin Ezzy noted that Perth has not yet reached its peak for million-dollar markets, with 24 suburbs currently showing positive quarterly value growth near the million-dollar threshold.

Perth alone experienced a remarkable 56% increase in the number of seven-figure suburbs compared to last year, totaling 100 in August, which includes 31 new house markets and four unit markets.

This increase in million-dollar suburbs marks a significant rise from 14.3% before the COVID-19 pandemic in early 2020.