Property market researcher RP Data is narrowing its definition of “luxury or prestige” property, arguing that the old million-dollar benchmark now describes 9% of all sales in Melbourne.
Australian house prices have soared in the past year, rising 9.5% in all Australian capitals and 9.9% in Melbourne.
Melbourne homes were worth a median of $515,000 as of February 28, up 5.9% in the past decade.
Victorian market specialist Robert Larocca said luxury homes should be defined as those worth $2 million or more. Under that definition, he noted that Melbourne’s prestige market had yet to recover to 2010 levels.
There were only 1,161 sales worth $2 million or more throughout 2013, accounting for 1.43% of the market.
There’s more on the RP Data blog.
NOW WATCH: Executive Life videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.