Elwood has been Port Phillip’s star property performer this year, notching some impressive price growth.
TRENDY Elwood is defying Melbourne’s property market slowdown, with house prices soaring in the past year.
The suburb’s median house price has jumped 25.1 per cent, leaving the sluggish 7.9 per cent growth seen across greater Melbourne in its dust.
And it’s not the only star on the Port Phillip market, with Middle Park also outperforming Melbourne overall.
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Elwood has recorded some impressive sales this year including 6 Joyce St, which sold for $3.215 million in October.
The four-bedroom house set a price record for the street.
Chisholm and Gamon Elwood director Sam Gamon said the best properties were bucking the trend amid weaker conditions.
“Yes, the market has shown a little bit of softening and buyers have become a bit more selective, but quality properties are still selling well,” Mr Gamon said.
“The softening of the market means there is some sensitivity in terms of pricing for properties that have a perceived weakness and that the prices have had a slight realignment.”
Mr Gamon said Elwood still provided great value compared to its bayside neighbours, boosting its popularity. “You’re never dealing in a suburb that is over supplied, and it is tightly held which protects values,” he said. “Plus it’s the liveability of the suburb with wonderful villages and a great community spirit.”
He added the area had also benefited from avoiding overseas investment.
“Yes, prices went up but bayside wasn’t overly inflated by overseas investment.”
The property sold for $2.808 million, $108,000 above price hopes.
The seaside suburb has had 106 reported house sales in the past 12 months and is one of the area’s priciest, with a $2.09 million median.
Further up the bay, Middle Park also notched impressive growth, with its median house price rising 17.8 per cent to $2.65 million.
CoreLogic figures also show median house prices in Albert Park and Balaclava grew 7.5 per cent and 7 per cent respectively.
That growth compares to overall Melbourne’s 7.9 per cent rise to a $750,000 median house price in the 12 months to July.
“A lot of Elwood and Middle Park have heritage overlays so you can’t get land and overdevelop it. That keeps it quite exclusive,” Mr Gamon said.
Elwood is one of five Port Phillip suburbs that have recorded annual house price gains.
Five Port Phillip suburbs have posted annual house price gains and three have fallen.
St Kilda’s median house price fell the most, down 35.4 per cent to a $850,000 median from 68 sales in the 12 months.
Melbourne’s top performer was Rockbank in the Melton City Council area, its median house price skyrocketing 44 per cent to $540,000.
Mr Gamon said buyers looking to upsize had the upper hand in a softer market.
“The top of end of the market and quality properties are highly sought-after because they are rare and people are recognising it’s a good time to upsize,” he said.
“At the lower end, some of the properties that attracted investors have softened due to bank lending requirements.”
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