Melbourne’s top property markets in 2023 revealed amid questions over immigration driving price rises

Melbourne’s top property markets for 2023 have been revealed, but there are questions over whether some have had their numbers influenced by surging foreign migration.

32 Metung St, Balwyn, has a $4m-$4.4m asking price and is located in one of Melbourne’s top performing suburbs of 2023.

An immigration surge is thought to be a factor in the price growth of a number of Melbourne’s best performing property markets this year.

Harkaway on the city’s south-eastern fringe was the city’s best in show according to new PropTrack analysis, with house and unit prices combined rising 10 per cent across the past year.

The suburb was identified as number one based on PropTrack machine-learning backed Automated Valuation Model analysis assessing all homes — not just those that have sold. It calculated the suburb’s overall median home price at $1.294m.

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A new home mecca in nearby Officer South was the next best, also notching an about 10 per cent gain to its $820,000 median, driven by first-home buyers.

Balnarring on the Mornington Peninsula claimed third spot thanks to an increase in ritzy new homes being built in the suburb that helped raise the typical home price 8 per cent to $1.388m.

But with many of the city’s 10 top-performing markets centred in the leafy east around Balwyn, Deepdene, Glen Waverley and Canterbury, prominent buyer’s advocate Cate Bakos said she was curious how many new arrivals to Australia had made a move to those areas.

“It’s been a record year for new migration, and Deepdene and Balwyn absolutely attract new migrants,” Ms Bakos said.

“But I’m not surprised more expensive areas have gone up, as people making a lot of money don’t tend to worry about interest rates.”

Kay & Burton executive director Scott Patterson said he had noticed an uplift in international buyers “mainly from China”, who were “taking advantage of the Aussie dollar”.

Mr Patterson added there were others coming from India, the UK and USA, including a number of expats returning home.

“We have sold a handful of homes sight unseen,” he said.

Strong local demand from families had also driven market gains from October to present, and he tipped that growth to continue in 2024.

27-29 Rowallan Ave, Harkaway, gives an idea of the equestrian-friendly homes the suburb is known for. It will set you back $3.3m-$3.5m.

Latest Australian Bureau of Statistics figures show Victoria’s population rose by 161,700 people in the year to March, with 454,400 new migrants arriving nationwide in the same time frame.

Meanwhile, the most recent Foreign Investment Review Board found that offshore investment from China into Aussie homes lifted by $1bn in the past financial year to a $3.4bn total.

Separate PropTrack research has indicated Melbourne is the nation’s most searched capital by international buyers on realestate.com.au.

Peake Real Estate director Kirsten Turner said Harkaway was a hub for premium equestrian properties, with many of the streets outside of the main township lined with white post and rail fencing and houses commanding impressive views and prices upwards of $3m.

“Per capita, it has one of the highest selling prices in Victoria,” she said.

Rosedale in Gippsland was the state’s top-performing regional market with its $493,000 median valued home up by 11 per cent. Heyfield was next best with an 8 per cent uptick bringing the local median to $404,000.

28 Bruce St, Balnarring, is one of the suburb’s more classic residences and has a $1.35m-$1.45m asking price.

Kay & Burton Flinders’ Ruth Williams said Balnarring was an area that had a similar blend of coastal country charm to Red Hill and Flinders, but was closer to services as well as Melbourne.

MELBOURNE’S TOP PROPERTY MARKETS 2023

Harkaway: $1.294m — up 10%

Officer South: $820,000 — up 10%

Balnarring: $1.388m — up 8%

Balwyn: $2.079m — up 8%

Somers: $1.666m — up 8%

Deepdene: $3.006m — up 8%

Canterbury: $2.708m — up 8%

Glen Waverley: $1.507m — up 8%

Vermont South: $1.458m — up 7%

Forest Hill: $1.155m — up 7%

Source: PropTrack Automated Valuation Model

Median prices and growth amalgamate both houses and units

Ms Williams said an uptick in ritzy new homes like 5 Thornton Grove had given it a lift, while its more classic cottage-like residences similar to 28 Bruce St were also still in vogue.

“And Balnarring has great liveability as a small community,” she added.

Ray White Officer managing director Gavin Staindl said Officer South homes were almost entirely set within the Kaduna Estate that had become a hotspot for houseproud first-home buyers, that would quickly correct you if you mistakenly suggested they lived in neighbouring Officer.

6 Atherton Ave, Officer South, gives an idea of what $775,000-$825,000 gets in the suburb.

“Nothing is really over five-years old and people who move there are quite proud of it,” Mr Staindl said.

And with more schools, shops and even a new hospital due to be built in the area in the future, he said it was possible the $700,000-$1m most people paid today would ultimately seem affordable.

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