Block buyer Frank Valentic reveals Melbourne suburbs tipped to boom

One of The Block’s best-known buyers has revealed the real reason why the Channel 9 properties aren’t worth the price tags.

Experts say Melbourne’s next Toorak could already be emerging in suburbs like Elwood, Richmond and Reservoir, with ripple-effect buyers seeking capital growth, lifestyle and long-term legacy.

Apartments featured on The Block have struggled to hold value after the cameras stopped rolling — and the reason is brutally simple: they don’t have land.

Advantage Property Consulting director Frank Valentic said land appreciates over time, while buildings depreciate.”

“And it’s land that appreciates over time. Buildings depreciate,” Mr Valentic said.

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The Block regular also said suburbs like Elwood, Richmond and Reservoir could follow in Toorak’s footsteps, and reward buyers who get in early and ripple effects from Melbourne’s most expensive suburbs were already pushing into more affordable postcodes, where gentrification, infrastructure upgrades and buyer demand were starting to overlap.

“Elwood, it’s Brighton’s neighbouring suburb and can benefit from ripple effect,” he said.

“Richmond, it’s Toorak’s neighbouring suburb and is more affordable.”

He added that buyers willing to take a long-term view could also find opportunity in Reservoir, Preston, Dromana and McCrae.

“I think areas like Reservoir and Preston still offer great bang for buck,” he said.

“Peninsula suburbs such as Dromana and McCrae are great value for the water views you can get.”

But Mr Valentic warned buyers to be cautious in certain inner-city markets.

Buyers’ advocate and The Block regular Frank Valentic says buyers chasing the next Toorak should watch for infrastructure upgrades, gentrification and proximity to blue-chip postcodes.

The sale of 5 Isabelle Court, Mill Park, for $986,000 highlights growing buyer interest in outer-ring suburbs tipped for gentrification, with Mill Park among those Frank Valentic says are now on the rise.

“High-rise inner-city apartments and surrounding inner suburbs where there is an oversupply of properties compared to demand,” he said.

While some suburbs have grown by more than $3m since the 1980s, he said the fundamentals of capital growth remained the same, starting in prestige areas and spreading outwards.

“They usually follow the ripple effect, the ripple starts in blue chip suburbs and spreads outwards to more affordable area,” he said.

The Advanced Property Consultant director said even outer suburbs like Mill Park, Seaford and Frankston were now seeing signs of gentrification.

“Yes, some outer suburbs 20km plus from Melbourne are seeing gentrification,” Mr Valentic said.

Frank Valentic has helped buyers snap up some of The Block’s biggest homes — but says Melbourne’s best future gains could be in underrated suburbs buyers can still afford. Photo: Glenn Ferguson

Dromana’s $1.26m sale at 4 St Mary’s Place shows the growing appeal of Mornington Peninsula suburbs offering water views and long-term capital growth, according to Frank Valentic.

Mr Valentic also said young buyers were often discouraged by today’s prices but could still build wealth by getting a foothold in the market.

“It’s important to stay positive and try to get your foothold in the market,” he said.

“You may need to be more flexible on your wish list and suburb criteria.”

The $1.19m sale of 3 Fiddled St, Reservoir, reflects increasing demand in inner-north suburbs that buyers’ advocates say echo Fitzroy and Brunswick’s early transformation.

Kay & Burton Stonnington director Darren Lewenberg says Melbourne’s prestige buyers are more globally mobile and financially agile than ever and they’re focused on legacy, not just location.

Kay & Burton Stonnington director Darren Lewenberg said prestige buyers today often have family backing or wealth built over generations, and tend to be more considered in their approach.

“We’re seeing well-supported younger buyers from tech, internationally mobile professionals, and family-backed purchasers,” Mr Lewenberg said.

“Stonnington’s prestige market has long attracted families with generational wealth, high-income professionals, and increasingly, global buyers seeking security, education, and lifestyle.”

“If anything, today’s buyers are more considered, less driven by urgency, more attuned to long-term value.”

Mr Lewenberg said even as prices have surged, buyers were not showing signs of compromising on land size or location.

“We aren’t seeing widespread compromise in terms of location or land size; the prestige segment remains resilient, underpinned by limited supply and enduring demand.”

Asked whether Melbourne’s top-tier price levels were sustainable, he said financial flexibility and long-term vision remained key.

“At this end of the market, long-term vision and financial agility continue to define success and therefore feel confident in the long-term viability and sustainability of the top-end market,” he said.

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Originally published as Block buyer Frank Valentic reveals Melbourne suburbs tipped to boom