31 McNamaras Rd, Millgrove easily eclipsed its $470,000-$515,000 to fetch $550,000 in Melbourne’s top growth suburb last month.
Forget the doom and gloom — dozens of Melbourne house markets have defied cooling conditions to record double-digit price growth in the past year.
A resounding 70 suburbs across the city had 10 per cent or more added to their median house prices in the year to September 30, Real Estate Institute of Victoria data shows.
Yarra Ranges town Millgrove was the biggest mover, jumping 30.8 per cent to a $401,500 median from 31 sales.
It was followed by northern suburb Dallas, up 26.6 per cent to $529,500 from 55 transactions, and beachside ’burb Elwood, up 22.9 per cent to $1.7 million after 78 sales.
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Dallas is one of the city’s top price growth performers. 20 Millewa Cres earned $542,000 there in October.
Also notching gains of more than 20 per cent were Whittlesea, Melton South, Yarra Junction, Blairgowrie, Keysborough, Melton and Melton West.
The vast majority of suburbs on the REIV list (57) are more than 20km from the CBD, with just three (Elwood, Williamstown and South Yarra) in the inner ring.
The City of Casey was the best represented council area — eight postcodes there recorded double-digit gains, with Hampton Park (up 16.9 per cent to $550,000) and Doveton (up 16.2 per cent to $493,500) the top performers.
The Yarra Ranges region had seven entrants, while Cardinia, Hume and the Mornington Peninsula each had six.
REIV president Robyn Waters said affordability was a key factor keeping most of the postcodes in high demand, with all bar 14 coming in under greater Melbourne’s $834,000 median house price.
Elwood — where 329 Barkly St recently sold for $2.808 million — was one of three inner suburbs to record double-digit growth.
That figure had experienced modest five per cent annual growth.
“First-home buyers are more likely to be found in those outer suburbs, so those markets are still quite viable,” Ms Waters said.
“It’s not all doom and gloom.”
Barry Plant Group chief executive Mike McCarthy said outer Melbourne was still benefiting from the ripple effect that had pushed entry-level buyers further from the city centre throughout the market’s six-year “bull run”.
He said first-home buyers had become the city’s “strongest buying group” by taking advantage of challenging conditions for sellers.
“That’s paradoxically pushing prices up in those outer areas. But they’re still relatively affordable,” he said.
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4 McOwan Cres, Yarra Junction offered top value for the buyer who paid $605,500 for its huge 1495sq m block.
Bell Real Estate Yarra Junction director Michael Robinson said “value for money” was the biggest lure in Millgrove, where the high-$300,000s to low-$400,000s could still secure a house on a decent block. Although, that had soared from the low-$300,000s a year ago.
The lure of “a country lifestyle” within commuting distance from Melbourne’s eastern suburbs was another plus for Millgrove and fellow growth hotspot Yarra Junction.
Further research by Hotspotting’s Terry Ryder found 61 suburbs or towns in regional Victoria had also notched double-digit price growth in the past year.
Bendigo was the strongest regional market of 2018, with Geelong and Ballarat consistent top performers and Latrobe, East Gippsland and South Gippsland on the up, he said: “Property prices are rising, you just have to know where.”
MELBOURNE SUBURBS WITH DOUBLE-DIGIT ANNUAL MEDIAN HOUSE PRICE GROWTH
By the numbers:
70 suburbs recorded annual median house price gains of 10% or more, including:
• 57 outer suburbs (more than 20km from the CBD)
• 10 middle suburbs (10-20km from the CBD)
• 3 inner (within 10km of the CBD)
• 8 in Casey municipality, 7 in Yarra Ranges, 6 in Cardinia, Hume and Mornington Peninsula, 5 in Frankston, Melton, Nillumbik and Wyndham
• 56 below greater Melbourne’s $834,000 median house price (which rose 5% annually)
• Millgrove: $401,500 median house price, up 30.8% annually from 31 sales
• Dallas: $529,500, 26.6%, 55
• Elwood: $1.7m, 22.9%, 78
• Whittlesea: $605,000, 22.1%, 61
• Melton South: $405,000, 21.3%, 73
• Yarra Junction: $485,000, 21.2%, 57
• Blairgowrie: $885,000, 21%, 76
• Keysborough: $872,750, 20.9%, 156
• Melton West: $411,500, 20.5%, 119
• Melton: $405,000, 20.4%, 119
• Roxburgh Park: $555,000, 18.9%, 154
• Brookfield: $453,750, 18.7%, 40
• Manor Lakes: $473,750, 18.4%, 84
• Meadow Heights: $572,500, 18.4%, 60
• Warburton: $525,000, 18.3%, 64
• Officer: $546,500, 17%, 134
• Hampton Park: $550,000, 16.9%, 131
• Gembrook: $750,000, 16.8%, 28
• Black Rock: $2,132,500, 16.4%, 58
• Healesville: $602,000, 16.4%, 101
— Source: Real Estate Institute of Victoria, for year to September 30