Suburbtrends: where Melbourne’s $555.1bn in mortgage-free homes are — and how their equity could shape the market

Melbourne families own billions of dollars in homes without a loan. Find out which areas have the highest value of mortgage-free property — and how their equity could shape the market.

Brighton, home of famous beach bathing boxes, is one of the top Melbourne suburbs where children and grandchildren are set to benefit from intergenerational wealth transfers.

Melbourne’s mortgage-free families are sitting on an estimated $555.1bn in property, giving them a massive advantage in helping their children or grandkids to buy a home.

Suburbtrends has tallied the wealthiest suburbs for real estate inheritance based on Australian Bureau of Statistics data including the number of properties owned outright in each area and median house and unit prices.

The property analytics company’s founder Kent Lardner said intergenerational wealth transfer was crucial to help younger generations gain financial stability and enter “a very tough housing market”.

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The results indicated Melbourne’s mortgage-free homes, including the Mornington Peninsula, accounts for a fifth of Victoria’s $2.769 trillion worth of residential real estate.

Glen Waverly topped the state, boasting a whopping $9.78bn in overall estimated unencumbered property wealth.

This three-bedroom house at 23 Surrey Rd, Mt Waverley, has a $1.65m-$1.75m asking range. The suburb has a massive $8.12bn in mortgage-free homes.

Suburbtrends founder Kent Lardner. Picture: airviewonline.com.au

At 358 St Kilda St, Brighton, this five-bedroom house could be yours for $3.15m. The suburb is Melbourne’s second-highest area for the value of mortgage-free homes within its borders.

The suburb features 5086 detached houses and 842 units owned outright, with median prices of $1.75m and $1.07m, respectively.

Next up was Brighton where there are $8.37bn in mortgage-free homes, Mt Waverley’s $8.12bn in unencumbered property wealth came in third, followed by Camberwell’s $6.97bn and Balwyn North $6.93bn.

Suburbs in the city’s north including Reservoir and Preston, each calculated to have more than $5bn in paid-off homes, placed above Toorak’s $3.71bn figure in the same category.

Mr Lardner said this was because the first two areas have a high number of unencumbered homes, with 5297 houses in Reservoir among them, despite having lower median property values.

28 Barwon Ave, Reservoir, has a $900,000-$950,000 asking range. The suburb is home to more than $5bn in paid-off houses and units.

49 Woodbury St, Williams Landing, a three-bedroom house on the market for $595,000-$650,000 is an affordable option for homebuyers on a budget.

Or 124 Elevation Blvd, Craigieburn, might take your fancy with a $600,000-$660,000 asking range.

He said grandchildren locked out of the housing market due to rising prices stood to benefit the most from future wealth transfers.

“Ideally, the third generation would gain a foothold in the housing market in the coming years through this transfer,” Mr Lardner said.

“However, given the mismatch between new supply and high population growth rates, the reality may be an even wider wealth gap — depending on your family’s postcode.”

He added that it was vital to acknowledge people without access to older relatives’ property wealth who would require broader economic and housing reforms, including social housing, to be able to keep a roof over their heads.

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