The Melbourne property market may have received its fair share of negative press lately, but new figures reveal that annual median price growth of almost 40% is happening in its best performing suburbs. Read on to find out where Melbourne’s booming suburbs can be found.
When it came to houses, Healesville took the top spot with phenomenal annual growth of 37.8%, according to recently released March quarter results from the Real Estate Institute of Victoria (REIV). Albert Park took second place (29.5%), followed by Caulfield North (25.1%) and Chelsea (23.5%).
Houses: top 10 for annual growth (scroll down to see the list)
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Source: REIV
*Less than 30 sales during the March quarter
In the unit category, nine of the top 10 achieved an annual median price increase of more than 20%, with Caulfield South (39.1%), Malvern (37.1%) and Bentleigh (29.1%) being notable performers.
Units: top 10 for annual growth
Source: REIV
*Less than 30 sales during the March quarter
Overall, the REIV figures reveal that Melbourne’s median house price increased by a modest 0.9% over the year, while units saw a -4.2% price drop on average. These results left Melbourne’s median house price at $535,000, and its median unit price at $435,000 according to the REIV. The regional house market saw a 1.3% median price rise ($318,558).
“The property market moves in cycles and now we are in one of stability, with overall median house prices showing no real growth. The median house price has increased $5000 since March 2011, confirming a very stable market in relation to prices,” said REIV CEO Enzo Raimondo.
“The last twelve months also reflect both an easing in population growth and improvement in the supply of new homes.”
Other observations included:
- In many suburbs, such as Coburg and Footscray, demand increased this quarter after buyers found median prices well below their peaks.
- Other suburbs that have recorded strong demand this quarter were Wheelers Hill, Glen Iris, Camberwell, Tarneit, Doncaster and Ringwood.
- Over the median term both classes of dwelling have provided similar returns: the median house price increased by 43.4% over the past five years, while the median unit price increased by 39.1%.
What are your thoughts on where to buy this year? Join the debate on our property investment forum.
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