Melbourne suburbs that have become equity goldmines in the past five years revealed: PropTrack

Nearly 100 Melbourne suburbs’ house prices gained more than $200,000 in equity across five years, adding hundreds of thousands to their owners’ pockets. SEARCH YOUR AREA

A three-bedroom house at 13 Melibee St, Blairgowrie, is on the market with a $1.725m-$1.895m asking range. Blairgowrie was one of the top performing areas across five years, the PropTrack data shows.

Battler suburbs are among the Melbourne suburbs where houses have become goldmines in the past five years. 

Median prices in 90 areas across the city gained more than $200,000 in equity between July 2018 and July 2023.

PropTrack figures show median values in a further 51 locales piled on at least $150,000.

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But it’s some of the city’s once affordable neighbourhoods that are over-performing, recording 31-74 per cent growth that — while more modest in dollar terms — ranked them alongside several swish Mornington Peninsula addresses which also scored substantial equity gains.

The battler areas on the winners’ list include Clyde and Koo Wee Rup in the southeastern suburbs, Riddells Creek in the Macedon Ranges, the west’s Strathtulloh, and in fringe suburbs Diggers Rest and Bacchus Marsh.

The PropTrack data shows Capel Sound units increased (38.2 per cent, equating to $187,407) in value to a $678,000 median price, while Donvale units grew (36.6 per cent, or $239,802) to a $895,000 median.

PropTrack economist Angus Moore said higher interest rates had led to many buyers seeking affordable outer suburban abodes, often pursuing bigger blocks and houses with more room to work from home.

“Much of the past five years includes the pandemic and one of the important factors then was people looking for larger properties, which you can get in places like the Mornington Peninsula, the outer east, northwest and southeast,” Mr Moore said.

157 Athletic Circuit, Clyde, is a four-bedroom house with a $650,000-$715,000 asking range. Clyde recorded a 73.9 per cent median house price rise in the five years, becoming Melbourne’s top performing suburb in terms of percentages.

The median house price in greater Melbourne is $880,000, according to PropTrack. Picture: Ian Currie.

A three-bedroom house, 1124 Grange Rd, Alphington has a $1.019m price tag. The inner northeast suburb recorded a 58.5 per cent rise, hitting a $1.87m median house price and gaining $690,189 in equity across five years.

OBrien Real Estate founder and co-director Darren Hutchins said low supply of new homes and high building costs were a key driver behind Clyde’s 73.9 per cent median house price increase, which surged from $395,054 to $687,000 from 2018 to today.

“Until the state government frees up considerable land holdings, developers will be driving the cost of land up,” Mr Hutchins said.

12 Leila Rd, Warburton, a three-bedroom house, has a $795,000-$870,000 asking range. The Yarra Ranges town was in the top 10 performing areas for Greater Melbourne.

On the Mornington Peninsula, this five-bedroom house with a pool at 28 Iluka St, Safety Beach, has a $1.58m-$1.68m price guide. The area posted a $1.21m median house price in July, which was 47.6 per cent higher than five years previously.

“However, in comparison to the rest of the suburbs in Melbourne, you can pick up a house here well below the city’s median price ($880,000).”

He said circumstances varied for all buyers, but if an owner had purchased a house 5-10 years ago which remained in good condition, it could “absolutely” have turned into a virtual goldmine for them.

Mr Hutchins said for example, he purchased a Clyde North house in February 2018 for $985,000 and sold it for $1.215m in 2021, gaining a $230,000 profit in 3.5 years.

24 Anvil Way, Clyde North, is a four-bedroom house with an $800,000-$850,000 price guide. The suburb is popular with first-home buyers and families.

LJ Hooker Casey’s Rajesh Rednam said Clyde and Clyde North’s market had been “really, really active with first-home buyers entering the market” including families with young children, attracted by affordability and the area’s schools.

“Spring is going to be a seller’s treat,” Mr Rednam said.

“It is becoming a scenario where we get multiple offers for homes, if the pricing is right and the are presented well.”

More than 820 Victorian properties were headed to auction this week, PropTrack data shows. Picture: NewsWire/Monique Harmer

A three-bedroom house with a $550,000-$580,000 asking range at 2 Murrayfield Place, Strathtulloh, located in the Melton Council municipality.

Advantage Property Consulting buyer’s advocate Frank Valentic said the Peninsula “was still probably primed for strong future growth” with McCrae and Dromana especially popular because they were closer to Melbourne’s CBD.

Mr Valentic said buying in suburbs which neighbour booming areas, before gentrification rippled outwards, could help purchasers “get more bang for their buck” when building equity.

“I still think Melbourne’s middle north, mid-west and middle east are great value for money,” Mr Valentic said.

At 4 Caldwell Rd, Dromana, is a four-bedroom house with a $1.2m-$1.3m asking range.

Sunshine, Footscray West, Reservoir, Preston, Coburg, Heidelberg, Rosanna, Box Hill, Doncaster, Balwyn North, Mont Albert and Burwood were among his tips for buyers.

“Sometimes going a train station or road crossing further can save hundreds of thousands of dollars,” Mr Valentic added.

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