COVID price busters: The hottest Melbourne suburbs to buy into in 2021
As Melbourne’s market rebounds from a pandemic-driven downturn, experts have revealed their best bets on all sides of the city if you’re a first-home buyer, family or luxury home buyer.
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Melbourne real estate is rapidly rebounding from a COVID-driven downturn, with buyers and sellers returning to the market in droves.
We asked experts and agents across the city for their tips on where to buy post-pandemic.
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FIRST HOME: LESS THAN $750,000
NORTH
Reservoir: Ray White Preston director John Catanzariti said Reservoir had plenty of potential for first-home buyers who had been saving during lockdown, with the house median just tipping over $750,000 and the unit median at $560,000. It offered “flexibility for buyers who want to break into the market with an old property they can refurbish, or a renovated home.”
Thomastown: Mr Catanzariti said Thomastown was packed with “great 1980s brick homes” that offered plenty of space for first-home buyers planning on starting families, and also potential to be updated when purchasers had more capital down the track. A typical house is affordably priced at $616,000.
SOUTH
Frankston: Nick Johnstone Real Estate director Nick Johnstone labelled Frankston an affordable gateway to the Mornington Peninsula, where people were flocking for “lifestyle and space” as a result of COVID-19. A typical house costs $606,250 and a unit, $421,500, according to realestate.com.au.
Seaford/Edithvale: Mr Johnstone said suburbs with “proximity to the water”, including Seaford ($686,500 house median) and Edithvale ($710,000 unit median), would attract more young homeowners who no longer wanted to live in outer landlocked areas. “A lot of urban sprawl development along that southern boundary has allowed people to move along the coast,” he said.
Pakenham/Cranbourne: McEwing & Partners director Dean Phillips said first-home buyers would be “taking advantage” of the government grants available to them post-pandemic and moving to “newer areas” with land releases, like Pakenham ($512,000 house median) and Cranbourne ($510,000). “These areas continue to grow with a lot of market activity from first-home buyers,” he said.
Rosebud/Somerville: Mr Phillips expected a rise in first-home buyer activity in Rosebud ($595,000 house median) and Somerville ($645,000) — two of the Mornington Peninsula’s most affordable suburbs — as more househunters were driven by the pandemic to look down the coast.
EAST
Ringwood: Dubbed a relatively affordable option in Melbourne’s “expensive” east by realestate.com.au chief economist Nerida Conisbee, Ringwood offers a unit market that’s particularly achievable for first-home buyers ($550,000 median). Access to Eastland Shopping Centre and train links to the CBD were other perks, she said.
Chirnside Park: Barry Plant Doncaster East director Mark Di Giulio said Chirnside Park offered “large traditional family blocks” that were in reach for first-home buyers — a drawcard post-pandemic, given COVID-19 had driven househunters to seek more space. It also had an achievable $725,000 median house price and access to major shopping centres.
Lilydale: While Lilydale was once considered a country town, major infrastructure projects had added a city lifestyle to the outer-eastern suburb, Mr Di Giulio said. “It’s a hipster community now, with urban farmers living in Lilydale,” he said. A typical house costs $699,950.
WEST
Maidstone/Braybrook: Hocking Stuart Yarraville director Leo Dardha dubbed Maidstone a hidden gem of the inner west for its closeness to Highpoint shopping centre and affordability, with a $760,750 median house price. Hotspotting’s latest report named neighbouring Braybrook ($672,000) as one of just 32 “rising” suburbs in Melbourne.
West Footscray: Mr Dardha said prices were already rebounding in West Footscray ($533,750 unit median), but there were still “great little buys” on offer. Boasting two train stations and “multicultural Barkly Street village”, the suburb has also experienced a dramatic increase in buyer demand on realestate.com.au in the past year.
Brooklyn: Brooklyn homes would become “more and more desirable” as the West Gate Tunnel Project progressed to give residents better access to the city, Mr Dardha said. The suburb was also affordable given its closeness to the CBD, with a typical house costing $672,500.
FAMILIES: $750,000-$2 MILLION
NORTH
Preston: Now was the time to buy into Preston, with a lack of available family homes to meet buyer demand already driving up the $1.013m median, Ray White’s John Catanzariti said. Realestate.com.au chief economist Nerida Conisbee said the train station and thriving retail precinct at Northland Shopping Centre were major drawcards.
Northcote/Thornbury: A combination of “community spirit” and quality schooling had put Northcote ($1.406m house median) on the radar of local and even interstate buyers, according to Mr Catanzariti. And an array of cool pubs, shops and cafes also made neighbouring Thornbury ($1.186m) a hot spot in the eyes of respected real estate guru John McGrath.
Moonee Ponds: With gorgeous period homes, popular eateries on Puckle Street and Mount Alexander Road, and access to the Maribyrnong River, Moonee Ponds offered “terrific value” for families, Nelson Alexander Fitzroy director Arch Staver said: “Just $2m could deliver you your perfect dream home.” A typical house costs even less, at $1.255m.
SOUTH
Parkdale: Nick Johnstone director Nick Johnstone said Parkdale “may not be affordable much longer” as more families pursued the lesser-known waterfront suburb. “It’s become really trendy, as most places along on the train line have,” he said. The median house price has risen 6.1 per cent annually already, to $1.21m.
Cheltenham: Lifestyle perks galore were up for grabs in Cheltenham, including access to the new Southland train station, Westfield Southland and the beach, Mr Johnstone said. The suburb had also been buoyed by the creation of the Beaumaris Secondary College zone three years ago. A typical house there costs $1.04m.
Hampton/Sandringham: Hampton ($1.9m house median) has been flung into the national spotlight by its selection as The Block’s next location. This is expected to boost its popularity among househunters, with Mr Johnstone noting it and fellow beachside ‘burb Sandringham ($1.776m) were already on young families’ hit lists.
EAST
Templestowe/Park Orchards: The pandemic has driven a desire for more space, making Templestowe ($1.4m house median) and Park Orchards ($1.77m) ideal for families, Barry Plant’s Mark Di Giulio said. Realestate.com.au recently identified the latter as Melbourne’s fourth most in-demand suburb for houses.
Warrandyte: Also sitting among Melbourne’s most in-demand suburbs, based on buyer activity on realestate.com.au, Warrandyte ($1.1m house median) offered both “luxury” living in the form of “beautiful big homes, as well as really nice homes on smaller blocks”, according to Ms Conisbee.
Eltham: This northeastern suburb ($986,000 median) had held up well throughout the pandemic to be on track to hit a $1m median within the next three months, Ms Conisbee said. “Homes have lots of room for families, but the area is getting more expensive,” she said.
WEST
Newport/Spotswood: Neighbouring “family-oriented” suburbs Newport ($1.055m house median) and Spotswood ($960,000) were often “second on (househunters’) shopping lists” to up-market postcodes like Williamstown and Yarraville — and they offered great buying as a result, Greg Hocking Footscray agent Tracey Dean said.
Altona/Altona North/Altona Meadows: Ms Dean said families were flocking to Altona ($920,000 house median), for its beach access, walking tracks and schools. House listings in Altona North ($820,000) are also attracting substantially more buyer activity on realestate.com.au than they were a year ago. But Altona Meadows remained a hidden gem with a much more affordable median ($630,000).
Seddon: Hocking Stuart Yarraville’s Leo Dardha said Seddon ($1.031m house median) was “already a firm favourite” among families, thanks to its wide streets and decent-sized blocks. And its appeal was “only going to broaden when the junior High School campus opens on Albert Street in 2021,” he said.
Kingsville: Kingsville ($976,000) was sometimes overlooked by people unfamiliar with the area, Mr Dardha said. But buyers who discovered it found it hard to resist the tree-lined streets stacked with “rows of pretty double-fronted Edwardian-era homes”, and the family-friendly vibe.
LUXURY: $2 MILLION-PLUS
NORTH
Fitzroy: Fitzroy’s heritage homes and “high-end warehouse conversions” were always in demand, and the bounce-back from lockdown would be no different, Nelson Alexander Fitzroy director Arch Staver said. “It has the luxurious inner-city lifestyle where almost everything is just a short stroll away,” he added. The median house price is $1.404m, but a truly luxe home will set you back $2m-plus.
Eaglemont: Set to benefit from buyers’ rush towards lifestyle and space, Eaglemont was filled with winding green streets and multimillion-dollar “rambling family estates” with a prestigious period feel, Mr Staver said. It also offered access to the Yarra River, parks, private schools and a golf course.
SOUTH
Brighton: Not even the pandemic could bring down Brighton, with realestate.com.au finding the median house price had soared 28 per cent quarterly to hit $2.75m. Nick Johnstone director Nick Johnstone attributed this to an influx of buyers from the “landlocked” leafy east. The $16.5m sale of a beachside trophy home was a recent highlight.
Mornington/Mount Martha/Mount Eliza: McEwing & Partners’ Dean Phillips said the northern end of the Mornington Peninsula had “ridiculously strong inquiry levels” during lockdown. Buyers notably set their sights on the beachside lifestyle on offer in Mornington, Mount Martha and Mount Eliza, where house sales are regularly topping $2m.
Flinders: While Portsea and Sorrento were always popular with luxury buyers, the lifestyle combining coast and country on offer in Flinders was increasingly grabbing their attention, Mr Phillips said. He tipped this “high demand from people who want to be in a quieter location and still a stone’s throw from the beach“ to continue.
EAST
Kew/Kew East: Despite having median house prices of $2,267,500 and $1,866,500 respectively, Kew and Kew East still offered “excellent value for money”, Barry Plant’s Mark Di Giulio said. Access to green spaces like Studley Park, the Yarra River and Kew Golf Club were among the lifestyle perks.
Hawthorn: Real estate entrepreneur John McGrath named Hawthorn among five Victorian hot spots poised to bounce-back strongly in the post-virus world. Carrying a $2.4m median house price, the suburb was just 6km from the city and “surrounded by some of the city’s most expensive and prestigious suburbs”.
Toorak: Multimillion-dollar sales and listings have been pouring out of Toorak since real estate restrictions eased. These included a trio of $14m sales in October, and $20m-plus listings on Myvore Court and Clendon Road. Marshall White’s Richard Mackinnon reported “strength in the $10-$20m” market, with deep-pocketed buyers “keen to get on with their lives”.
WEST
Williamstown: Hocking Stuart Yarraville’s Leo Dardha dubbed Williamstown the “jewel of the inner west” for its beaches, food scene and quality schools. And despite notching several multimillion-dollar sales this year, the suburb was primed for a bigger 2021 when vendors shed their COVID-19 hesitancy to list more of “the big, expensive stuff”, Greg Hocking Footscray’s Tracey Dean said.
Yarraville: The suburb had evolved from being a “stepping stone” to Williamstown to a luxury postcode in its own right, Mr Staver said. As a result, Yarraville had more $2m-plus sales than Newport, Williamstown’s traditional “overflow” suburb, this year. Perks included a thriving restaurant scene and a beloved local cinema.
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THE EXPERTS: Ray White Preston director John Catanzariti, Nick Johnstone Real Estate director Nick Johnstone, McEwing & Partners director Dean Phillips, realestate.com.au chief economist Nerida Conisbee, Barry Plant Doncaster East director Mark Di Giulio, Hocking Stuart Yarraville director Leo Dardha, McGrath Real Estate founder John McGrath, Nelson Alexander Fitzroy director Arch Staver, Greg Hocking Footscray agent Tracey Dean, Marshall White Stonnington agent Richard Mackinnon
CHELTENHAM A CRACKER FOR FAMILIES
Cheltenham house prices have boomed since Greg and Danielle Clarke bought in seven years ago.
The southeastern suburb’s median has stacked on 35 per cent in the past five years alone to hit $1.04m, according to realestate.com.au.
But local agent Nick Johnstone, director of Nick Johnstone Real Estate, said the area still offered value for buyers, naming it one of his top post-pandemic picks for families.
The new Southland train station, three years inside Beaumaris Secondary College zone and the beach just a few suburbs away had attracted plenty of prospective purchasers — and would continue to do so, he said.
Mr Johnstone is about to list the Clarkes’ three-bedroom house with a pool at 49 Luxmoore Street in Cheltenham’s prized Pennydale pocket, with a $1.05-$1.15m price guide and a December 5 auction date.
The vendors said Pennydale — on the beach side of Nepean Highway — had notched big sales even throughout the coronavirus-driven downturn, giving them confidence to sell ahead of a move to Queensland to start a new business venture.
Mr Clarke said he had also watched “a lot of townhouses” and new homes spring up since they moved into the suburb, another sign of buyer demand.
“But around Pennydale, there’s still no high-density residential. It really is a very family-friendly area,” he said.