PropTrack Melbourne home prices: median house values increase in 84 per cent of suburbs in three months
Melbourne’s housing market is on the verge of swapping doom for boom after median values increased in 351 out of 417 suburbs between April and June. SEARCH HOW YOUR AREA PERFORMED.
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Melbourne’s housing market is on the cusp of swapping doom for boom after home values surged across the past three months.
New PropTrack quarterly data shows median house prices in 351 metropolitan areas increased between April and June despite rising interest rates.
This represents 84 per cent of the Melbourne’s suburbs assessed by PropTrack economists.
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The metropolitan Melbourne median house price rose $43,000 across the quarter to $898,000.
But medians for just 45 areas rose in the past year, with the increases in the latest three months of data a welcome sign the market decline has changed directions.
Property Mavens chief executive and senior buyers’ agent Miriam Sandkuhler said the market “is definitely starting a slow and steady recovery, largely driven by a very tight supply of properties for sale”.
“This is combined with first-home buyers, and buyers in general, being nervous to purchase an off-the-plan property or build from scratch due to recent numerous collapses across the building sector,” Ms Sandkuhler said.
She added that the recovery would not be like the boom experienced after Covid-19 hit Australia, but a more moderate upturn due to high interest rates impacting on buyers.
Werribee South was top of the props in the past three months, with its now $898,632 median price rising $52,214 in that timeline.
Ratepayers of Werribee South chairperson Dr Joe Garra said the “peaceful and quiet” area offered quick access to the beach, plenty of local eateries including Shadowfax Winery, Werribee Open Range Zoo, Werribee Park Mansion, Victoria State Rose Garden, Werribee Park Golf Club and walking trails.
“Homes in the older part where I live don’t go on the market very often and we all know each other, all the kids play cricket in the street,” Dr Garra said.
“Where I live, the older part near the boat ramp, when something goes on the market, it sells very quickly.
“And something not many people know is that the farms in the area produce 85 per cent of Victoria’s cauliflower and 54 per cent of its broccoli.”
Dr Garra said Werribee South was one of Melbourne’s hidden gems.
“A lot of people who visit the area go straight for the touristy stuff on K Rd, so a lot of people don’t know about the area and we like it that way,” he added.
However, a tough preceding nine months means it is still $73,208 worse off than it was in June last year.
YPA Point Cook director Justin Tong said the main reason for Werribee South’s most recent price increase was the area’s shortage of good-quality houses for sale.
“Both the marina and established area of the suburb are very tightly held, with only nine sales in the past six months, Mr Tong said.
“Across the board, I think the fact we’ve seen an increase in the last quarter is encouraging, I expect that’s because it’s in an affordable bayside location, the schools it is zoned for, good freeway access and the slower-paced lifestyle the area offers.”
Mr Tong described Werribee South houses as “very affordable” compared to Port Phillip Bay’s other bayside suburbs, and even offered a series of colourful boat sheds at Campbells Cove and Baileys Beach much like Brighton’s iconic boat sheds.
Mambourin in Melbourne’s west also had a house value surge as its $637,986 median house price rose $28,399 in three months, and is now $2922 better off compared to last year.
In the south, Aspendale’s $1,334,189 median house value is $51,737 higher than three months prior and $23,439 more than last year.
PropTrack economist Angus Moore said several eastern suburbs also achieved higher values, including Doncaster East where houses rose to a $1,516,158 median, a figure $57,046 higher than three months earlier and $52,607 more than a year before.
“It’s consistent with what we are seeing across Melbourne, prices are broadly up since they bottomed out in January,” Mr Moore said.
“It’s certainly not all doom and gloom.”
Bekdon Richards director Paul Richards said a lot of young families, including new migrants, were driving up prices for the relatively low number of homes for sale in Doncaster and Doncaster East, lured by its amenities, schools and nearby freeway.
The Alpine Shire town Bright was home to the state’s top growth area for the year, with a $136,465 (13.4 per cent) increase, bringing its median house value to $1,158,337.
Dickens Real Estate’s Gerard Gray said although Bright was a popular holiday spot, owner-occupiers currently accounted for about 90 per cent of inquiries and purchases.
“We’ve been buoyed by the fact families and couples want to live in Bright,” Mr Gray said.
Nine Mornington Peninsula areas were among Melbourne’s top 20 worst-performing house values for the past three months, as rising land taxes and interest rates caused some owners to sell up.
DONCASTER EAST IS SPOT-ON FOR FAMILY
Ash and Narin Rodrigues love living in leafy Doncaster East so much they want to buy their next home in the same suburb.
The husband and wife are selling the four-bedroom townhouse at 48 Morello Circle where they have lived for the past eight years, with $1.3m-$1.4m price hopes.
Along with daughters Aida, aged 7, and Myra, 6, they are planning on upsizing, ideally within 1km of their current address.
Mr Rodrigues said a 3.6 per cent rise in Doncaster East’s house prices over the past year was good news and gave them confidence as they prepared to sell then buy a new home.
The area is “a close-knit, tight community of neighbours who look out for each other,” Mr Rodrigues added.
During their time at the townhouse, they have enjoyed entertaining friends and hosting their daughters’ birthday parties on the undercover alfresco terrace.
The “quiet” location is also close to schools, parks, eateries and shops.
“The highlight for us is the proximity to The Pines shopping centre, you can stroll up quickly to get bread and milk, or get the girls out the house,” Mr Rodrigues said.
Bekdon Richards director Paul Richards has the listing.
GREATER MELBOURNE BEST-PERFORMING SUBURBS – 3 MONTHS
Greater Melbourne areas where median house prices have increased the most between April 2023 and June 2023
Werribee South 6.2% rise, median $898,632
Moorooduc 5.5% rise, median $2,323,808
Viewbank 4.9% rise, median $1,165,999
Lysterfield 4.8% rise, median $1,288,586
Mambourin 4.7% rise, median $637,986
Aspendale Gardens 4.3% rise, median $1,154,935
Eden Park 4.3% rise, median $1,250,561
Macedon 4.2% rise, $1,213,164
Aspendale 4% rise, $1,334,189
Nunawading 3.9% rise, median $1,187,449
REST OF VICTORIA BEST-PERFORMING SUBURBS – 3 MONTHS
Rest of Victoria areas where median house prices have increased the most between April 2023 and June 2023.
Edenhope 6.3% rise, median $278,179
Paradise Beach 5.8% rise, median $350,790
Shepparton North 5.7% rise, median $647,396
Corryong 4.7% rise, median $347,771
Glomar Beach 4.2% rise, median $465,056
Mildura 4% rise, median $443,509
Yarrawonga 4% rise, median $689,570
Koondrook 3.8% rise, $388,008
Casteron 3.7% rise, median $278,384
Donald 3.6%, median $246,758
GREATER MELBOURNE BEST-PERFORMING SUBURBS – 12 MONTHS
Greater Melbourne areas where median house prices have increased the most between July 2022 to June 2023.
Toorak 5% rise, median $5,341,651
Officer South 4.7% rise, median $839,635
Doncaster East 3.6% rise, median $1,516,158
Wollert 3.5% rise, median $696,985
Hawthorn East 2.8% rise, median $2,572,343
Riddells Creek 2.7% rise, median $1,138,202
Mordialloc 2.6% rise, median $1,356,948
Cobblebank 2.4% rise, median $627,660
Deepdene 2.3% rise, median $3,418,136
Balwyn 2.3% rise, median $2,783,558
REST OF VICTORIA BEST-PERFORMING SUBURBS – 12 MONTHS
Rest of Victoria’s areas where median house prices have increased the most between July 2022 to June 2023.
Bright 13.4% rise, median $1,158,337
Beechworth 2.7% rise, median $789,870
Mt Beauty 2.6% rise, median $552,201
Shepparton North 1.2% rise, median $647,396
Lake Tyers Beach 0.9% rise, median $602,199
Swan Hill 0.5% rise, median $433,184
Newborough 0.3% rise, median $414,861
Mildura 0.2% rise, median $443,509
Leneva 0% rise, median $663,082
Kyabram -0.3% drop, $444,188
*The PropTrack’s Quarterly Home Values data excluded low confidence valuations, which includes suburbs with few comparable sales or that are very small in size due to limitations in reliably estimating values.
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