Melbourne suburbs where 2020 homebuyers have spent the most: CoreLogic

A surprise suburb has joined elite Brighton and Kew among the Melbourne postcodes where buyers have spent the most on houses and units in 2020.

Connor Menadue and Zoe Collier at their first home in Point Cook, where buyers splashed almost $485m on houses this year. Picture: Nicki Connolly

Point Cook has punched above its weight to join elite Melbourne postcodes among the year’s biggest property markets by value.

Buyers have splashed almost $485m on houses in the southwestern suburb in 2020, putting it only behind Brighton ($651.55m), Glen Waverley ($530.1m) and Kew ($489.89m) citywide, according to property data firm CoreLogic.

And Point Cook topped another million-dollar suburb — Balwyn North with $469.11m — despite a typical house there costing more than $100,000 less than Melbourne’s $790,543 median.

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2 Kinane Street, Brighton, sold for almost $11m this year.

CoreLogic head of research Eliza Owen said Point Cook had been one of Australia’s busiest suburbs this year, with 713 house sales to September 30, despite the fact the Melbourne market was hit hardest by COVID-19.

“We’ve observed a lot of demand over 2020 in the more affordable suburbs on the periphery of Melbourne,” she said.

“Part of that is driven by the incentives introduced by federal and state governments.” These included the HomeBuilder grant, the extension of the First Home Loan Deposit Scheme and half-price stamp duty for Victorian new home purchases below $1m.

Ms Owen also noted Brighton placed fourth nationally behind Sydney postcodes Mosman ($1.13bn), Kellyville ($981.6m) and Castle Hill ($696.82m), reflecting “resilience” at the top end of the Melbourne market.

The blue-chip beach suburb also had a bigger haul than in 2019, when $650.5m was spent on houses.

29 Edgevale Road, Kew, achieved a $2.6m sale in 2020.

North Melbourne recruit and former Richmond footballer Connor Menadue, 24, bought his first home in Point Cook with partner Zoe Collier, 22, in October.

Ms Collier said the desire to live close to family drew them to the suburb, as Menadue grew up there while she was raised in neighbouring Altona Meadows.

“There are also a lot of good shopping centres, places to go walking, restaurants, and three freeway entrances,” she said.

The couple also snared a three-bedroom house below the $750,000 threshold to earn a stamp duty discount as first-home buyers.

“I think we bought at the right time. When we were looking, it wasn’t too competitive,” Ms Collier said. “It’s booming now.”

Zoe Collier said she and her AFL footballer partner bought into “booming” Point Cook at the right time. Picture: Nicki Connolly

Barry Plant Point Cook partner Ray Harb said his office had enjoyed its “best month in 15 years” in October, notching about 40 sales.

And November yielded one of Point Cook’s priciest ever sales outside the up-market Sanctuary Lakes estate: the $1.3m transaction of 9 Japonica Way.

“Coming out of lockdown, it’s been busier than ever,” he said.

“People who have been working from home are upgrading because they need more space,” he said.

“And first-home buyers are thinking (with interest rates so low), ‘why should we rent when we can buy?’

“The demand is really strong, and I don’t think it’s going to slow down.”

Mr Harb added a 25 per cent stamp duty saving for those who buy established homes priced below $1m, announced in the recent state budget, had further stimulated the market.

9 Japonica Way, Point Cook, sold for $1.3m in November.

CoreLogic also found more cash was splashed on units in Melbourne’s CBD than any other capital city suburb: $517m from 823 sales. Unit buyers sank more than $200m into South Yarra, Docklands and St Kilda, too.

Ms Owen said this big spend came despite COVID-19 decimating inner-Melbourne apartment rental markets, stripping away international students and migrants, and was likely driven by affordability.

“Prices have come down in inner-city areas, so these suburbs may be appealing for first-home buyers or first-time investors wanting to pick up a bargain,” she said.

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Melbourne suburbs with highest total value of sales

Houses

1. Brighton: $651.55m from 198 sales

2. Glen Waverley: $530.11m from 353 sales

3. Kew: $489.89m from 179 sales

4. Point Cook: $484.93m from 713 sales

5. Balwyn North: $469.11m from 230 sales

Units

1. Melbourne CBD: $517.06m from 823 sales

2. South Yarra: $293.47m from 337 sales

3. Docklands: $236.08m from 321 sales

4. St Kilda: $209.87m from 358 sales

5. Port Melbourne: $201.02m from 214 sales

Source: CoreLogic, for the year to September 30

Originally published as Melbourne suburbs where 2020 homebuyers have spent the most: CoreLogic