Victoria real estate: Areas that are thriving despite interest rate rises — search your suburb

Out is in with Melbourne’s far-flung suburbs dominating the list of the city’s interest rate-defiant suburbs, new PropTrack data has revealed. SEARCH HOW YOUR SUBURB PERFORMED

This four-bedroom house at 9 Pilmer St, Bacchus Marsh, is for sale with a $699,000-$759,000 asking range. Bacchus Marsh has experienced one of the biggest rises in median house values since April 2022, the PropTrack data shows.

Out is in with Melbourne’s far-flung suburbs dominating the list of the city’s interest rate-defiant suburbs.

New PropTrack data has revealed staggering fringe benefits for the city’s outer areas, with prices jumping as much as $111,171 in Pearcedale near Frankston since the Reserve Bank began raising the cash rate in May last year.

Bacchus Marsh, Maddingley, Manor Lakes and Taylors Hill to the west have added an extra $34,782-$62,586, up to 10.7 per cent, to the suburbs’ median house values.

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Lyndhurst, Lynbrook, Sandhurst and Officer join Pearcedale on the winners list in the south east, with median increases topping out at 12.3 per cent and dollar gains anywhere from $33,512-$82,336.

Closer to the city, units in Caulfield South and Patterson Lakes both experienced double-digit increases of 17.6 per cent and 13.9 per cent to their medians, respectively.

And as spring’s busy auction market gets underway agents are reporting fear of missing out, also know as FOMO, is now driving buyers scared they won’t be able to secure a home.

18 Glenbrook Cres, Lynbrook, is a four-bedroom house with a $780,000-$840,000 price guide. The area experienced one of the largest increases in median house prices.

93 Gisborne Rd, Bacchus Marsh, is on the market with a $899,000-$949,000 price tag. Median house prices in the area have risen 7.4 per cent since April 2022.

PropTrack economist Angus Moore said houses in some of the nation’s “more affordable” areas have “held up pretty well across the past 16 months”.

“We are seeing some buyers priced out of more expensive areas they may have been looking at 18 months ago and who now may be looking at more affordable areas,” Mr Moore said

Barry Plant partner Andrew Koulaouzos said rising building material and labour costs were driving buyers who might have wanted a brand-new suburban fringe home to Taylors Hill’s high quality ex-display homes instead.

“As soon as we get a home there which is quite a nice house it doesn’t last long,” Mr Koulaouzos said.

“We are still getting multiple inquiries per property because there’s less property available and the FOMO is out there.”

On the Mornington Peninsula, a four-bedroom house at 17 Ferrier Close, Sandhurst, is listed with a $1m-$1.1m asking range. The area’s median house price stands at $1.03m.

Melbourne’s auction market is expected to be busy this spring. Picture: Ian Currie.

Also in the west, Eview Group’s Dave Samarges said Manor Lakes houses were being snapped up quickly.

“Stock that’s come up for sale has been sold within its first 14 days on the market,” Mr Samarges said.

He recently listed a house in Buloke Ave, Manor Lakes, off market for a fortnight which attracted an $850,000 offer.

Four days after the home was advertised online at realestate.com.au it sold for a sum $32,000 higher.

“The fact is there’s not a lot of stock around and fear of missing out saw the buyer who offered $850,000 then give $882,000,” he said.

With three bedrooms, 29 Nellie Street, Lang Lang, has a $629,000-$640,000 asking range. This is slightly below the suburb’s $722,500 median house value, according to PropTrack. Photo: Supplied/House of Pixels.

First National Real Estate’s Adam Tucci said a lot of people moved to Bacchus Marsh and nearby Maddingley because it was located just outside the Covid-era’s “ring of steel” in 2020. This had resulted in visiting family and friends falling in love with the “relaxed” and affordable area and deciding to buy there.

“We were sort-of a well secret in Bacchus Marsh but as more people move to the area, more people find out about it,” Mr Tucci said.

This three-bedroom vintage charmer at 39 Parwan Rd, Maddingley, has a $649,000-$749,000 asking range.

OBrien Real Estate’s Colin Butler said Pearcedale Primary School’s Deaf Facility was luring several families to the area, while many people from Indian and Afghani backgrounds sought homes in the “close-knit, fantastic communities” of Lyndhurst and Lynbrook.

In Melbourne’s western suburbs, this house at 14 Blakewater Cres, Weir Views, has a $619,000-$669,000 listed range. The suburb’s median house value rose 6.9 per cent to hit $577,000 in June.

Buyers Home Base founder and flat-fee buyer’s advocate Julie DeBondt-Barker said low numbers of properties on the market in some of these areas meant purchasers should expect a fight for homes if they wanted a piece of them.

“If you have a nice family home that is well-presented, it will do well right now because stock levels are so low,” Ms DeBondt-Barker said.

But she warned against waiting for prices to come down, saying this was unlikely with many August auctions resulting in sales 10-25 per cent above quoted asking ranges. .

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