RP Data: A Million-Dollar Home In Melbourne Is No Longer 'Prestige'

A seven-bedroom home in Toorak, marketed by RT Edgar

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 read: Here’s How Much You Need To Earn If You Want To Buy A Home In Australia’s 20 Richest Suburbs

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