Melbourne’s housing market on the rise with ‘supercharged’ spring suburbs revealed — Hotspotting
Melbourne’s housing market is at the forefront of a ‘national resurgence’, as new analysis reveals 23 Victorian areas among the nation’s top 100 suburbs to watch. SEE THE LIST
Melbourne’s housing market is at the forefront of a ‘national resurgence’ with home sales and new listings rising rapidly, according to property experts.
The latest Hotspotting Price Predictor Index revealed 23 Victorian areas have been identified as “supercharged” suburbs to watch this spring across Australia.
The report showed strong momentum across Greater Melbourne, with 58 assessed suburbs experiencing a rise in sales activity as opposed to just 12 in the previous quarter.
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Hotspotting founder Terry Ryder said the recovery trend had been “quite widespread” across capital cities, but Melbourne and Brisbane were “the most dramatic”.
“They have turned around from (two of the weakest markets) to where they’re actually showing considerable strength,” Mr Ryder said.
“Melbourne is definitely at the forefront of what we’re calling a national resurgence.”
While Greater Sydney was ranked as the strongest market based on the number of suburbs with positive sales activity, Mr Ryder said Melbourne was close behind it, with its revival particularly significant considering its much weaker prior position.
“We have labelled the Greater Melbourne area as a recovering market of those where for the past 18 months, the trend in sales activity has been down,” he said.
“It’s turned around and quite dramatically in many cases, not just a small recovery, but quite a big turnaround.
“People have adapted to the new normal, which is higher interest rates; people have adjusted in terms of doing their sums, working out what they can do and now are getting on with it.”
New listings in Melbourne also jumped 24.9 per cent month-on-month, and was the busiest August recorded since 2011, according to PropTrack.
PropTrack economist Angus Moore said interest rates seemingly having reached their peak and property price movement stabilising has led to the surge in homes hitting the market and rise in seller confidence.
“Unlike what we were seeing this time last year; we’re not seeing 50 basis point increases from the RBA (Reserve Bank of Australia) every month consecutively and that’s probably supporting buyer and seller confidence,” Mr Moore said.
“This year we’ve seen prices stabilise or even start to recover in some areas and that’s also probably supporting seller confidence.”
Total listings, or homes currently available for sale, across Melbourne was also around 10 per cent higher than average over the prior decade.
Mr Moore added that this indicated that there was a “reasonable amount” of stock on the market at the moment for buyers to choose from.
VICTORIA’S “SUPERCHARGED” SUBURBS
Suburb - Dwelling Type(s) - Median ($)
Armstrong Creek - Houses - $700,000
Balwyn - Houses & Units - $2.82m, $965,000
Bayswater North - Houses - $835,000
Botanic Ridge - Houses - $920,000
Box Hill - Houses & Units - $1.64m, $485,000
Brookfield - Houses - $565,000
Charlemont - Houses - $630,000
Clayton - Houses & Units - $1.23m, $735,000
Collingwood - Houses & Units - $1.24m, $635,000
Docklands - Units - $645,000
Doveton - Houses - $590,000
Echuca - Houses - $570,000
Hawthorn East - Houses & Units - $2.425m, $670,000
Kurunjang - Houses - $530,000
Kyneton - Houses - $895,000
Melbourne CBD - Units - $415,000
Mooroolbark - Houses - $830,000
Mordialloc - Houses - $1.34m
Officer - Houses - $700,000
Richmond - Houses & Units - $1.395m, $595,000
Sorrento - Houses - $2.2m
Weir Views - Houses - $570,000
West Melbourne - Units - $495,000
Source: Hotspotting
(Supercharged suburbs = The places showing the strongest growth patterns; the ones most likely to deliver future price growth, according to Hotspotting.)
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sarah.petty@news.com.au
Originally published as Melbourne’s housing market on the rise with ‘supercharged’ spring suburbs revealed — Hotspotting
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