Melbourne suburbs where property values are rising fastest

Politics


Johnson said the local market has “stayed strong” since her family moved to the area.

“(Moving here) was meant to be temporary, but we quickly fell in love with the suburb and decided it was where we wanted to call home and raise our children,” said the mother of three. the age.

“We've also bought another property in the area because it's going to hold its value, and it's going to be a sought-after area and I don't see that changing.”

The median cost of a home in Parkdale has risen 3.2% to $1.56 million in three months.

Neighboring suburbs Edithvale and Aspendale Gardens had increases of 3.9 and 3.8 per cent respectively.

CoreLogic head of research Tim Lawless said most of the suburbs that surged in the past three months were in fairly affluent markets where the cost of a home was $1.3 million or more .

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“These areas tend to buck the trend and perhaps this is a sign that buyers at this higher end of the income range are likely to be less affected by cost-of-living pressures and high interest rates,” he said. to say.

Although many of these suburbs were in more expensive areas, Lawless noted that they could be more affordable than neighboring sought-after destinations.

“What you might describe as the bridesmaid suburbs, where they're the best thing, there can be this ripple of demand from the absolute top end of the market to the adjacent but slightly more affordable suburbs. No I'd be surprised if that's a trend we're seeing in the market.”

Lawless added that units in many downtown areas had seen growth as a result of first-home buyer activity.

Buyers are looking for properties in the 'bridesmaid suburbs'. Credit: LUIS ENRIQUE ASCUI

Prahran's average unit value has risen 3.6 per cent to $549,472 in the three months to April. The median unit value in South Yarra rose 3.1 per cent to $617,690.

Biggin & Scott Stonnington director Michael Tynan said unit prices in these inner-city suburbs were rising because of people looking to get out of the rental market.

“If you look at what one-bedroom (apartments) are currently renting for, $500 to $550 a week in rent, it's cheaper to buy something rather than rent a one-bedroom for that area,” Tynan said.

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“If you look at the one-bedroom market, it's doing pretty well at the moment because people don't want to rent because it's so expensive … because of the heat in the rental market, it helps drive that market”.

In Melbourne's inner-east and inner-south, local buyers who want to stay in the area have driven up prices, said Mathew Cox, director and auctioneer at Buxton Real Estate Mentone.

“Once marketers see those great results, they also jump on the bandwagon and go, well, if they get it for that, let's put ours on the market, too,” he said.

“So there's been a lot of people upsizing in the same location, helping drive those prices up.”



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