Melbourne suburbs with homes making and losing $1k a day revealed: REIV

Melbourne homes in some suburbs raked in as much as $1000 a day for the past year, with others losing just as much. Find out how yours did.

2275 Mornington-Flinders Rd, Flinders, is for sale at $13m-$14.3m as the suburb emerged as 2022’s best performer in terms of its dollar growth.

Melbourne’s real estate rollercoaster added more than $1000 a day to some suburbs, even as others lost just as much in a tumultuous year for homeowners in 2022.

Real Estate Institute of Victoria figures show the city’s overall median house price fell $35,000 (3.3 per cent) to $1.04m, based on all sales across the past year, with a hint in the final months that prices might soon rise again.

In Flinders on the Mornington Peninsula the typical house ended 2022 more than $500,000 better off as prices gained an average of more than $1500 a day to reach a $3.9m median.

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Closer to the CBD, the bayside enclave of Elwood also gifted homeowners an extra $1000 a day as the typical house cost climbed to $2.455m.

But eight interest rate hikes adding about $1000 a month to repayments for the state’s $622,190 average mortgage prompted home value falls in a narrow majority of suburbs.

Middle Park was worst hit, with the median falling from $3.4m at the end of 2021 to just $2.75m at the end of 2022 — a $1780 a day loss.

Overall, the market’s mixed fortunes led to houses in 173 suburbs across metropolitan Melbourne gaining value across the year, while 138 lost ground.

REIV president Andrew Meehan said with some suburbs performing well and others facing headwinds, it was a “normal” market.

Mr Meehan said auction clearance rates ended 2022 at around 70 per cent and the average time on market was still relatively low at 34 days as a low number of listings maintained competition for homes. Buyer numbers could rise this year as migration rises and rental supply tightens.

“Everything points to a year when we will have demand, and if we have demand we will start to see price growth,” he said.

MELBOURNE’S TOP EARNING SUBURBS 2022

Flinders — $3.9m, up $1506.85 a day (16.4%)

Elwood — $2,617,500, up $1092.45 a day (18%)

Park Orchards — $2.17m, up $602.75 a day (11.3%)

Patterson Lakes — $1.3m, up $575.35 a day (19.3%)

Narre Warren North — $1.75m, up $547.95 a day (12.9%)

Research — $1.56m, up $520.55 a day (13.9%)

Eaglemont — $2.45m, up $479.45 a day (7.7%)

Kew — $2,872,500, up $472.60 (6.4%)

McCrae — $1.39m, up $465.75 a day (13.9%)

Donvale — $1.64m, up $429.45 a day (10.6%)

Source: REIV, percentages reflect annual growth

MELBOURNE’S HARDEST HIT SUBURBS 2022

Middle Park — $2.75m, down $1780.80 a day (-19.1%)

South Yarra — $1,970,500, down $1587.60 a day (-22.7%)

Toorak — $5.09m, down $1205.50 a day (-8%)

Hampton — $2.27m, down $1041.10 a day (-14.3%)

Hawthorn — $2.43m, down $876.70 a day (-11.6%)

Lower Plenty — $1.35m, down $856.15 a day (-18.8%)

Fitzroy North — $1.575m, down $702.75 a day (-14%)

Seddon — $1.055m, down $561.65 a day (-16.3%)

Port Melbourne — $1.655m, down $539.70 a day (-10.6%)

Rosanna — $1.21m, down $491.80 a day (-12.9%)

Source: REIV, percentages reflect annual fall

And the final three months of 2022 hint Melbourne properties will resume broader growth in 2023.

While just 77 suburbs recorded gains in the three months ending at September 30, there were 142 suburbs where the median house gained value in the December quarter.

Bayside-based Elite Buyer Agents director David Easterbrook said he wasn’t surprised to see a vast discrepancy between Middle Park and Elwood.

Mr Easterbrook said while the former was largely bought and sold by young professionals more likely to be selling with less regard to price as they start families, the latter appealed to families willing to hold on to a property until they get the right price.

28 Wave St, Elwood, sold for $3.265m in February as the suburb started strong in a successful year for homesellers.

205 Beaconsfield Pde, Middle Park, snatched an $11.5m sale in March — just a few weeks before rate rises began to push prices down.

He urged anyone looking to buy or sell this year to be clear about their needs from a home and to observe the market for this type of property in their desired area, and not to just rely on median prices to guide any plans.

Melbourne’s median unit price, which includes apartments and townhouses, fell $25,000 to $655,000 — with Travancore hardest hit as the cost to buy fell $107,500 (24 per cent) to $340,000.

Things were more positive in Bulleen where the typical unit rose $275,000 (36.4 per cent) to $1.03m.

13 Swallow Court, Patterson Lakes, made $3m in October and is in one of Melbourne’s most successful suburbs for sellers in 2022.

While last year proved tough for Seddon sellers, the $1.955m sale of 28 Princess St shortly after the first interest rate hike in May proved a canny move.

Regional Victoria’s typical house ended the year $45,250 (8 per cent) better off at $610,000, while units gained a more modest $26,000 (6.5 per cent) to reach $425,000.

Wallington near Geelong’s typical house price climbed $1534 a day to $2.375m as the wider state’s best performing market across the year, while central Ballarat’s typical unit soared an incredible $253,000 (62.2 per cent) to $670,000 as the top unit market.

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