This time last year, CoreLogic's Million Dollar Market report featured a record number of house and unit markets at the suburb level with a median value of $1 million or more. One year and 12 interest rate rises later, membership to the million-dollar club has become more exclusive, with many of last year's new entrants now falling below the million-dollar mark.

Between April 2022 and February 2023, CoreLogic's national Home Value Index moved through the sharpest decline on record, falling -9.1% in 10 months. While national dwelling values have recovered 2.3% over the past three months, they remain -6.9% below the recent peak.

As of May 2023, just 988 (22.3%) of the 4,436 house and unit markets analysed nationally had a median value at or above $1 million, down from 1,243 or 28.0% this time last year.

CoreLogic Economist Kaytlin Ezzy said 237 house markets and 19 unit markets had median values fall below $1 million in the past year, while Burns Beach, a coastal suburb 34 kilometres north of Perth’s CBD, was the lone new entrant.

Sydney had the largest decline in suburbs falling below $1 million, with 78 house and unit markets recording a decline in values to below seven figures.

Ms Ezzy said it was unsurprising to see Sydney top the list given it recorded the largest peak-to-trough decline in values of -13.8%.

"While declines across Sydney's more expensive markets were some of the largest across the country, many of these markets had a relatively high starting point allowing them to retain the seven-figure price tags,” she said.

“The trend among the suburbs where values have fallen below $1 million is in the more affordable locations on Sydney’s outer mortgage belt and fringe areas. Despite recording smaller declines it’s these suburbs where median values have dropped million-dollar threshold."

Figure 1 - Net change in million-dollar house and unit markets by GCC – May 2022 to May 2023

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