Melbourne’s top money-making property markets of the decade

An outer-western property market has risen above the rest to be crowned Melbourne’s best performing suburb of the past 10 years, eclipsing more fancied areas. See the full list here.

Samantha Landy

2 min read

February 29, 2020 - 8:00AM

Ryan and Kacey White and their daughters Emma, 9, and Chloe, 7, at their home in Rockbank — Melbourne’s long-term house price growth star. Picture: Tony Gough

A developing outer-western region has outshone more fancied postcodes to be Melbourne’s biggest money-making market of the past decade.

The median house price in Rockbank-Mt Cottrell has gained an average 7.9 per cent each year since 2010 to hit $598,268, according to research by CoreLogic and Property Investment Professionals of Australia.

This puts it well above metropolitan Melbourne’s average annual growth rate of 4.9 per cent.

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Doncaster East was the next most consistently strong market of the decade, with a typical house in the “south” part of the suburb notching yearly 7.8 per cent price gains to reach a $1.26 million median and those in the “north” part rising 7.5 per cent to $1.3 million.

Abbotsford, Doncaster, Templestowe Lower and Bulleen also joined the million-dollar club off the back of stellar annual rises since 2010.

2 McCrae St, Elwood recently sold for $1.52 million.

Elwood’s median kicked above $2 million, thanks to 7.2 per cent yearly rises, while Mickleham-Yuroke added 7.1 per cent annually to crack half a million dollars.

PIPA chairman Peter Koulizos said the latter had developed from being “fairly rural 10 years ago” to a residential area.

“Ten years ago, there were only eight sales there. Last year, there were 269,” he said.

“New homes are generally sold at a premium, resulting in high capital growth.”

Mr Koulizos tipped the growth spots of the next decade to be those undergoing gentrification, like Footscray, West Footscray, Maidstone and Braybrook, given this had been the case for several stars of the last decade, namely Abbotsford, St Kilda East and Elwood.

“If you go back in history, places (like these) were not sought after,” he said.

“Now they’re at the top end of the market.”

103 Turner St, Abbotsford fetched $1.48 million this month.

Project director of major Rockbank housing development, Woodlea, Matthew Dean said the suburb was “a small township of about 1200 people” surrounded by “rocks and thistles” a decade ago.

Since being rezoned for residential purposes in 2012, it had become home to 6500 residents — 5000 of those in Woodlea — as well as a modern train station, schools and childcare centres, a sporting precinct, cafe, medical centre and parks.

“Rockbank will have about 35,000 residents in 10-15 years,” Mr Dean said.

“We’re only half an hour from the CBD on the train. And we’re creating quality amenities and well-maintained streetscapes (so) you’d expect to see more great price growth to come.”

The White family said Rockbank’s value and the fact it was a “growing area” were drawcards for them. Picture: Tony Gough

Ryan and Kacey White bought into Woodlea about five years ago, built a four-bedroom house, and moved in with daughters Emma, now 9, and Chloe, 7, three years ago.

“We felt it was a growing area and the price was right to get a large block and a large house,” Mr White said.

“We figured … the kids could grow up with schools, parks, space and a good community feel.”

CoreLogic head of research Tim Lawless said Melbourne and Sydney had outperformed most markets over the past 10 years, thanks to “strong economic conditions and high rates of migration, which has fuelled housing demand”.

“However, such high rates of capital gain have eroded housing affordability and compressed rental yields,” he said.

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