Melbourne home price growth revealed: 306 suburbs where values rose | PropTrack

Melbourne has nearly 200 millionaire suburbs after house prices rose in more than 300 areas in the past financial year. Search to see how your region is doing.

PropTrack has revealed what is happening with home prices across Melbourne and much of Victoria — and some areas are performing much better than others.

Melbourne’s housing market millionaires list has continued to grow, with 192 suburbs — 47 per cent of the city’s total — now boasting typical seven-figure house prices.

By contrast there are just 218 parts of the city with a median house price below $1m, after a whopping 306 areas notched price growth in the past financial year.

Melbourne home values surged at least $50,000 in 25 suburbs as the city’s housing market recovery continues.

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In dollar terms Toorak led the charge, with a $217,000 (5.1 per cent) increase in its median house price to $4.515m.

But in percentage terms the tiny pocket of Junction Village in Melbourne’s south east near Clyde was the best performing area — with a 7.2 per cent increase in its about $644,000 median house price.

Outside of Melbourne, Kerang in Victoria’s north west was the state’s best in show, with the rural township on the Loddon River adding almost $25,000 (9.1 per cent) to its $298,000 median house price.

Dimboola and Merbein, also in the north west, were the next best, with typical houses rising 7.9 per cent and 7.6 per cent respectively.

Mansfield had the state’s best growth for units, with the typical flat in the central-Victorian town rising $51,000 (9.5 per cent) to $589,000.

Aberfeldie was the best Melbourne suburb for unit growth, with typical figures rising about $41,000 (5.6 per cent) to $771,000.

The stats also showed Mt Dandenong, Greensborough, Mulgrave and Sandhurst either joined the million-dollar club, or rejoined it in the past 12 months.

42 Waterside Circuit, Sandhurst, sold late last month via Michelle Stephens for $1.95m in a sign of what Melbourne’s newest million-dollar median neighbourhood can really do.

OBrien Real Estate agent Michelle Stephens said it was “exciting” to see Sandhurst in Melbourne’s south east join the $1m club, but it had only ever been a matter of time.

“But I feel that Sandhurst still represents really good value when you look at what the estate has to offer. We have two 18-hole golf courses, 24-hour round the clock security, a gym, pool, parks, gardens and over 50km of walking tracks,” Ms Stephens said.

“It’s a premium suburb, with great appeal to families, retirees and people looking for a safe and private location to live while still only 40 minutes to the CBD and 10 minutes from the beach.”

If home values continue to rise at current trends, there would be four more millionaire suburbs in Melbourne in the next year including Coburg North, Clarinda, Ringwood East and Bellfield.

And PropTrack economist Anne Flaherty said there were good prospects for Melbourne prices to continue rising.

“The trend we are going to see over the next year is more and more suburbs enter that $1m club,” Ms Flaherty said.

2 Valencia Blvd, Doreen is up for sale for $520,000-$570,000.

“Prices have stabilised after falling and I think once we continue to see that population growth drive demand for homes that will push property prices up. And the reality is Melbourne’s population is forecast to grow more than any other capital.”

Ms Flaherty said it was also possible the $914,000 wider Melbourne median house price could be at the $1m mark as soon as three years from now.

51 Largo Circuit, Junction Village, gives you an idea of what you get for your money with a $759,000-$789,000 asking price.

The economist said the cost-of-living crisis, high interest rates and a relatively higher level of new housing construction than most other capitals, as well as strong numbers of homes for sale, had kept the Victorian capital’s property prices from surging at the levels witnessed in NSW, South Australia and Queensland.

Moneycat Finance chief executive Evan Davis said at banks other lenders and even private financiers he works with were currently more confident in Melbourne than those making purchasing decisions.

“We are really underperforming here in Melbourne,” Mr Davis said.

“What we need to see is a 0.5 per cent interest rate cut. Then Melbourne will have the boom that we have seemingly missed out on.”

National Property Buyers director and buyer’s advocate Antony Bucello said the growth stats reflected a reasonable market, but that he believed Melbourne was due for “an upswing”.

“It has demonstrated pretty good resilience in a challenging environment,” Mr Bucello said.

“But it won’t stand still forever. I haven’t seen this sort of value in Melbourne for a long time, compared to the other capital cities.”

The buyer’s advocate noted that while Melbourne’s east and south east had definitely been high on buyers shopping lists in the past 12 months, the next year could see more attention on areas like Watsonia, Mill Park and parts of Bundoora.

“And I do genuinely believe that there are really good opportunities where people can get a home just below market value which, for good property, would be a very good move in the current environment,” Mr Bucello said.

Of the 111 Melbourne suburbs where values fell, Officer South had the largest reduction with a $46,000 (5.6 per cent) correction leading to an $809,000 median house price.

Barwon Heads on the Bellarine Peninsula had the largest drop off in a regional area, with its $1.502m median house price down $121,000 (7.5 per cent) in the past year.

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Originally published as Melbourne home price growth revealed: 306 suburbs where values rose | PropTrack