The number of suburbs in Australia’s million-dollar club has shrunk considerably in the past six months as the weight of rising inflation, consecutive rate hikes and falling property values takes its toll.

Since April, the median value in 169 suburbs around the country have dropped below seven figures while only seven suburbs across capital cities and regional areas have increased in value to $1 million or more.

CoreLogic Research Director Tim Lawless said a significant proportion of more affordable outer ring suburbs in Sydney and Melbourne are no longer recording a median value of $1 million or more.

“We are seeing the more affordable housing markets recording smaller declines, but values are generally trending lower, just not as fast as more expensive areas,” he said.

“Many of these outer fringe suburbs that have fallen below the $1 million mark were previously showing median values that were only marginally over the seven-figure threshold, so in many cases, a small percentage drop in value has been enough to push values below $1 million.”

“Housing values across the most expensive quarter of the market are actually falling faster, but most of these suburbs would need to see values fall significantly further before dragging their medians below the million-dollar mark.”

There are still 836 suburbs nationally with a median value of $1 million or more, including 347 in Sydney and 117 in Melbourne. Mr Lawless said they are the only capitals that have seen a reduction in the number of million-dollar suburbs when compared to October last year.

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Article by CoreLogic Research Director Tim Lawless.