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Million dollar homes on roll

THERE has been a surge in the number of homes sold for more than $1 million.

Acton Consolidation Central managing director Mark Anderson said on average three Perth houses sold each week for more than $1 million.

“An interesting trend is the fact that many of these million-dollar homes are now being sold in areas outside the traditional high-cost suburbs such as Peppermint Grove and Dalkeith,” Mr Anderson said.

“Overall, during the first six months of this year there were 86 homes sold in Perth which each had a value of over $1 million.”

During 1998, there were 75 homes sold above $1 million. In 1999 this increased sharply to 170.

“Despite the rise in interest rates, the rate of sales for homes valued at over $1 million is on track to surpass 1999,” he said.

“At the top end of the market, more people are prepared to spend more on their homes than previous years.

“For example, many professional people have re-invested their profits from stocks and shares in new economy companies back into real estate.”

Mr Anderson said the result was a large rise in new million-dollar homes being built.

“Typically, many people in this upper end of the new home market are prepared to spend as much as $50,000 on a new kitchen which was very uncommon in recent years,” he said.

“Many of these new homes are being built in older suburbs in Perth, such as Cottesloe where the land values have risen very sharply in recent years.

“Despite the rise in interest rates, the rate of sales for homes valued at over $1 million is on track to surpass 1999.”

– Mark Anderson.

“The redevelopment of older home sites in the western suburbs is pushing up the overall median house value of these areas.

“For example, the median house in Cottesloe over the past year has risen 13.6 per cent to $526,900.”

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