Booming suburbs in Melbourne’s west excelled with some of the most impressive price growth seen across Victoria last year.
Houses in Tarneit, Taylors Hill, Point Cook and Hoppers Crossing had price increases well above the 1.4 per cent citywide median, Real Estate Institute of Victoria data shows.
Tarneit was the seventh best performer in metropolitan Melbourne, with a median price increase of 9 per cent to $567,000 in 2018.
Biggin & Scott Wyndham City director Romy Gakhar said the rapid development of the outer west suburb had spurred demand for the area.
“Since the opening of a train station and Tarneit Central shopping centre, people have wanted to move closer to these amenities,” Mr Gakhar said.
“There are developments going up everywhere around here and it’s still very affordable.”
First-home buyers and investors from across Melbourne, and even interstate, often showed interest in the area, he added.
“Buyers come from everywhere, but there are also a lot of locals who are now upsizing into family homes to stay in the area,” Mr Gakhar said.
Further north, Taylors Hill’s median price increased 8.7 per cent to $750,000 in the same time.
Point Cook and Hoppers Crossing also had strong median price increases, of 6.1 per cent to $680,000 and 4.8 per cent to $555,500 respectively.
Hocking Stuart Werribee agent Adrian Brugaletta said proximity to the CBD made both suburbs attractive to buyers.
“It’s less than 30km to the city, and homes in Hoppers Crossing are often priced under $600,000, which attracts first-home buyers,” Mr Brugaletta said.
“Interest in the area has spiked over the past two to three years, as other areas have become unaffordable for buyers and there has always been exceptional value in the Wyndham city area.”
The $400 million upgrade to Pacific Werribee shopping centre, a new St Vincent’s Hospital and further developments nearby had attracted more investors and first-home buyers, he added.
REIV president Robyn Waters said outer suburbs attracted more buyers in 2018.
“There is no doubt that the banks’ tighter lending conditions are contributing to this trend, as are incentives for first-home buyers that encourage the purchase of affordable properties, more likely to be found in Outer Melbourne or Regional Victoria,” Ms Waters said.
Kensington was the west’s best performing inner city suburb, where the median unit price increased 3.3 per cent to $552,500 last year.
Melbourne’s top 20 annual growth suburbs for houses were all more than 20km from the city, with Mt Martha rising the most, by 12.3 per cent to a $1,100,500 median.