How every Victorian suburb’s median house and unit value changed in 2021
Nothing could stop the property market last year, despite Covid. See how your suburb finished 2021 — and our top performers.
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Regional Victorian hideaways and metropolitan coastal retreats finished 2021 with a bang by scoring the best percentage value gains in the December quarter.
Demand for inner city and suburban units showed signs of recovery as skyrocketing prices for stand-alone properties outstripped many buyers’ budgets.
And work and study from home requirements continued to drive demand for property outside the CBD.
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CoreLogic data reveals which Victorian postcodes closed out the year by notching the biggest value gains in the three months to December.
Regional outposts including Murtoa, Terang and Myrtleford reaped some of the best cash rises, with house values in the top country locales outpacing the growth recorded in metropolitan areas.
House values leapt between 14.7 and 15.1 per cent in those three best performing regional townships, equating to a rise of about $21,000 to $71,000.
But the dollar gains in Melbourne’s top growth postcodes were more dramatic.
Dromana, Crib Point and Somers topped greater Melbourne’s growth charts, each scoring between a $55,000 and $84,500 hike for houses. This equalled a percentage value jump of between 5.5 to 6.4 per cent.
While unit and apartment values in Watsonia, Wallan, Beaconsfield and Southbank also accrued impressive upswings, with values there swelling between 6.4 and 9.4 per cent, or by between about $28,500 and $64,500.
CoreLogic head of residential research Eliza Owen said the revival in some unit markets signified a potential “pivot” in demand among buyers priced out of freestanding dwellings.
“Similarly, higher gains were generally also seen in some markets further from the CBD or in regional Victoria, as relatively affordable dwelling values and tree-change and sea-change lifestyles continue to concentrate demand outside of the city centre,” Ms Owen said.
Nelson Alexander auctioneer Paul Harrison said the phenomenal growth in certain metropolitan areas helped 22 McCracken St, Kensington, set a new suburb record when it sold for an undisclosed figure beyond $3m in December.
Kensington figured among Melbourne’s top growth suburbs, with house values there shooting up by about $69,000 in the three months.
Barry Plant agent Llana Maher said Gembrook, another top scorer in greater Melbourne with 5.4 per cent value growth and an incredible $66,362 dollar rise, had proven popular with retirees and families since the onset of Covid-19.
“Because we’re part of a green wedge zone, which means you can’t be overdeveloped, the area’s not going to lose its beauty and that’s really appealing for people moving out of the suburbs,” Ms Maher said. “There’s acres of paradise in every direction.”
Wakelin Property Advisory director Jarrod McCabe said many top-performing regional postcodes in the last quarter of last year were tourist or holiday destinations.
“Whether it’s people looking at them as a holiday or permanent tree change, I’d say it’d probably be a combination of both,” Mr McCabe said.
Price growth dropped off across much of Melbourne in the December quarter due to an influx of sale stock that outweighed buyer demand and dragged down auction clearance rates.
But he predicted future house price growth in regional towns and across Melbourne would be more subdued this year, while Melbourne units may see a further recovery.
“To have 15 per cent growth (in some regional towns) for a quarter is just enormous and I don’t see that being stable long term,” Mr McCabe said.
“The median house price in Murtoa or St Arnaud is not going to be huge. It only takes a couple of people, perhaps even investors in those towns, to really skew the data.
“(But) it’ll be interesting to see if some of the units in some of the metropolitan areas continue on.
“The more that borders start to open up and with travel starting to resume … it might bring more confidence into the rental market to justify investor activity.”
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GEMBROOK HAS IT ALL
Dean Allcott is proud to call Gembrook home.
He’s spent the past 40 years living and raising a family in the leafy green postcode in the foothills of the Dandenong Ranges.
Aside from the great walking and bike tracks, schools and childcare options, it also has horse riding, fantastic restaurants and is just an hour’s drive from the CBD.
Mr Allcott recently listed his rental property around the corner from his home at 8-10 Knight Rd for $800,000-$880,000.
It had proved a good investment over the years, with a ready supply of tenants willing to lease the keys.
He said he planned to use the proceeds to help establish an all abilities sport centre called Elite Indoor Sportz in nearby Pakenham, which would add to the fantastic existing sport options already in the area.
“People have been able to take a drive (here during Covid) and you can’t help but fall in love with this place,” Mr Allcott said.
Regional Victoria (house values)
Suburb Dec qtr. change 2021 $ change
Murtoa 15.1% $21,489
Terang 15% $41,488
Myrtleford 14.7% $70,947
Paradise Beach 14% $43,377
Golden Beach 13.7% $43,794
Avenel 13.7% $59,700
Dinner Plain 13.1% $99,730
St Arnaud 13.1% $28,038
Mount Beauty 12.6% $59,807
Mallacoota 12.5% $48,761
Regional Victoria (unit values)
Suburb Dec qtr. change 2021 $ change
Strathdale 10.9% $38,907
Lakes Entrance 10.8% $31,742
Leopold 10.2% $49,117
Golden Square 9.6% $33,118
Norlane 9.2% $35,357
Swan Hill 9.2% $25,100
Mildura 9% $20,161
Bairnsdale 8.9% $25,230
West Wodonga 8.1% $24,647
Wodonga 8% $24,510
Metropolitan Melbourne (house values)
Suburb Dec qtr. change 2021 $ change
Dromana 6.4% $66,195
Crib Point 5.7% $55,140
Somers 5.5% $84,579
Gembrook 5.4% $66,362
Kensington 5.4% $69,262
Safety Beach 5.4% $67,036
Bunyip 5.4% $43,457
Tootgarook 5.2% $55,136
Tullamarine 5.2% $38,163
Junction Village 5.2% $38,710
Metropolitan Melbourne (unit values)
Suburb Dec qtr. change 2021 $ change
Watsonia 9.4% $64,413
Wallan 7% $28,664
Beaconsfield 7% $35,052
Southbank 6.4% $33,902
East Melbourne 6.4% $47,155
Lalor 6.1% $29,280
Mernda 6% $27,139
Abbotsford 6% $35,148
Fitzroy North 5.8% $43,111
Berwick 5.8% $34,863
Source: CoreLogic
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