Melbourne’s newest $1m and $2m suburbs revealed
More than 200 suburbs now have seven-figure median house prices following a big increase last year.
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Melbourne’s million-dollar club now has more than 200 members, after the number of suburbs with seven-figure median house prices swelled significantly in the past year.
The club has gained 65 suburbs – a 45 per cent increase – annually to reach 208 members, new Real Estate Institute of Victoria figures show.
Of these, 39 have house medians between $2m-$3m, up from 23 a year ago. Melbourne also has five $3m-$4m suburbs – Canterbury, Flinders, Malvern, Portsea and Shoreham – and two $4m-plus suburbs in East Melbourne and Toorak, according to the REIV.
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REIV president Adam Docking said it was “getting harder and harder to find houses (for less than) $1m” in Melbourne, especially in the inner ring.
He noted the citywide median sale price for houses hit $1.07m at the end of 2021, following an extraordinary $170,000 annual gain.
Even the city’s inner west and north – long considered reasonably affordable options close to the CBD – barely have a sub-$1m house market between them after South Kingsville and Bellfield gained seven-figure medians in the December quarter.
A typical house in northwest suburb Attwood is now worth $1.15m, according to the REIV. And seven outer-east and southeast postcodes also joined the million-dollar club in the last three months of 2021: Clayton South, Kilsyth South, Notting Hill, Scoresby, The Basin, Tootgarook and Watsonia North.
The cost of a typical house shot past $2m for the first time in Aberfeldie, Ivanhoe, Ormond, Park Orchards and Princes Hill in that period, too. This elevated the quintet to “elite” status, according to Mr Docking.
He said many of the new $1m and $2m markets had boomed as a result of buyers being priced out of prized neighbouring suburbs, known as “the ripple effect”. The Covid-driven desire for space and lifestyle had also spurred markets like The Basin, Tootgarook and Park Orchards.
Buxton Inner West director Matthew John said “hidden gem” South Kingsville had been “put on the map in recent years”, as an affordable alternative to adjoining Spotswood and Newport. But the extra competition for the small suburb’s limited housing stock had increased its median to $1,021,500.
Mr John said the suburb offered houses on 400-500sq m blocks for about this price, as well as access to amenities including public transport, schools, childcare centres and the popular Edwards Reserve.
The Vernon St shopping village also mirrored Yarraville’s, on a smaller scale, with cafe Blacksheep and Motorino Pizzeria highlights of the strip.
Mr Docking tipped Melbourne’s million-dollar club to continue to grow – but not at the same speed of recent years as the market stabilised in 2022.
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South Kingsville’s ‘crazy’ rise
Steven and Shannon Moses wanted to stay in South Kingsville – their home of 10 years – when they upsized.
But “crazy” price growth that has led to half the suburb’s houses exceeding $1m in value forced them to look elsewhere.
“Everything we looked at that suited our requirements, from a size and functionality perspective, just ended up being out of our price range,” Mr Moses said. “We had to look more broadly.”
South Kingsville’s boom may ultimately end up benefiting the Moses family, which also includes Olivia, 13, and Zion, 14. They’re set to auction their three-bedroom house at 37 Truman St with a $950,000-$1.04m price guide on February 5.
Mr Moses said the suburb’s initial appeals had been its easy access to the city via public transport and the freeway, its quality primary schools and Edwards Reserve.
But he and his wife also came to love walking into nearby Spotswood to cafe Doyle & Sons and Hudsons Road Wine & Beer.
“The businesses along Vernon St have continued to thrive, as well,” he said.
Melbourne’s million-dollar club
Newest $1m suburbs
Attwood: $1.15m
Bellfield: $1.085m
Clayton South: $1,037,500
Kilsyth South: $1,150,990
Notting Hill: $1.195m
Scoresby: $1.16m
South Kingsville: $1,021,500
The Basin: $1,002,750
Tootgarook: $1,097,500
Watsonia North: $1,007,500
Newest $2m suburbs
Aberfeldie: $2,230,500
Ivanhoe: $2.1m
Ormond: $2.026m
Park Orchards: $2.26m
Princes Hill: $2.55m
Number of $1m+ suburbs
$1m-$2m: 162 now / 147 six months ago / 115 a year ago / 108 five years ago
$2m-$3m: 39 / 23 / 23 / 17
$3m-$4m: 5 / 4 / 4 / 0
$4m+: 2 / 1 / 1 / 2
Total $1m+: 208 / 175 / 143 / 127
Source: REIV, data for December quarter 2021 and for houses only
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