Melbourne’s worst performing house and unit markets of 2024 revealed

One Melbourne suburb has had a more than $1.2m hit to its typical value in 2024, making it the city’s worst performing property market. See the list of areas with the biggest price drops.

Nathan Mawby

@mrmawby

2 min read

December 10, 2024 - 1:44PM

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Toorak has had a more than $1.28m hit to its typical house value in 2024, making it Melbourne’s worst performing property market.

PropTrack data has revealed that Melbourne’s priciest postcode was also the second worst in the nation as the typical price plunged from more than $6m to a bit over $4.8m in the 12 months to November.

Tough conditions more broadly led Victoria to dominate the list of the nation’s worst performing areas, with Barwon Heads and South Yarra also among the 10 worst-performing suburbs in the country.

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Substantial unit value falls were also recorded in Toorak, Sunshine, Canterbury and Balwyn, with the four also making it onto the nation’s worst-performers’ list.

This Toorak mansion has had its asking price reduced from $75m-$82m in March to $70m-$75m today.

PropTrack economist Angus Moore said with Melbourne’s wider property market dropping 1.16 per cent over the past 12 months, it was possible there was more volatility in response to changing types of homes being listed for sale that could be a factor in many of the areas.

If more smaller homes sell in a year than the previous year this can lower a suburb’s median price, without necessarily meaning individual home values have decreased.

“Toorak has come off a very, very high base, and it is quite susceptible to the types of homes for sale,” Mr Moore said.

In the 12 months to November 2023, Toorak had notched multiple home sales above $70m. By the end of November this year the highest disclosed sale was $40m.

98 Queen Circuit, Sunshine sold in May for $555,000.

Mr Moore added that with the Mornington Peninsula broadly falling 3.4 per cent and areas including Sommers, Sorrento and Blairgowrie recording some of the biggest falls for Greater Melbourne, it was probable the region was pulling back a bit after significant growth in the pandemic era.

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“It’s not that the area has seen huge price falls, but it is an area we have seen with the softest prices in the past year,” he said.

“And that has been the case for a few years, so it does seem we are seeing a bit of an unwinding of pandemic-era gains … though not all of the growth has come back.”

In many cases, areas where values have fallen in 2024 have had substantial growth in prior years, and those selling still made profits.