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Latest REIV data: Melbourne buyers chase value and affordability



While Melbourne’s median price moderated in the last three months of 2015, outer Melbourne grew – in a sign that buyers are looking for value and affordability further from the city’s CBD.

A high proportion of sales in Melbourne’s outer ring, and strong growth in these suburbs, helped stabilise the city’s median price in the final quarter of 2015.

 

Melbourne’s median price

The citywide median house price fell marginally in the December quarter – down 0.1% to a median of $718,000.

However, Melbourne’s outer suburbs – areas more than 20km from the CBD – were the standout performers in the last 3 months of 2015, increasing 2.9% over September figures.

Double-digit quarterly growth was experienced in multiple outer suburbs including Warrandyte (19.1%), Greenvale (17.8%), Frankston South (12.4%), Hillside (11.8%), Werribee (11.6%) and Parkdale (10.7%).

This significant price growth in the city’s outer ring indicates buyer interest in new growth areas.

Buyers are increasingly looking for value and these suburbs offer space and affordability without compromising on lifestyle and access to amenities.

Other areas seeing solid capital growth in the December quarter were Prahran (15.1%), Hawthorn East (13.96%) and Thornbury (12.5%).

Melbourne’s moderating market signals positive news for buyers looking to get a foothold on the property ladder.

Unlike 2015 which was a remarkable year for vendors, a moderating market as we are seeing at present looks set to favour buyers.

 

Million dollar suburbs continue to grow

The number of million dollar suburbs in Melbourne increased in the December quarter to 92 with 8 new suburbs entering the list for the first time.

First time entrants with a median house price of $1million or more are Parkville ($1.6m), Sorrento ($1.1m), Hampton East ($1,081,000), Parkdale ($1,062,500), Brunswick East ($1,020,000), Thornbury ($1,017,000) and Rosanna ($1,010,000).

Inner Melbourne continues to dominate the most expensive suburbs list, occupying 9 of the top 10 suburbs.

Despite a decline in the December quarter, Toorak remains Melbourne’s most expensive suburb with a median house price of $2,840,000. This was followed by Canterbury and Malvern with median house prices of $2,432,000 and $2,230,000 respectively.

The number of suburbs with a median house price above $2 million also increased in the December quarter.

13 suburbs now have a median house price of more than $2 million – 5 more than in the September quarter. A further 19 suburbs had a median house price above $1.5 million in the last 3 months of 2015.

The REIV’s latest quarterly data also reveals suburbs in the city’s west and north remain among the most affordable, with many of these suburbs offering family homes well below the outer Melbourne median house price of $559,000.

 

MELBOURNE’S TOP 10 GROWTH SUBURBS – DECEMBER QUARTER 2015

Suburb Dec-15 Median Sep-15 Median Quarterly Change
WARRANDYTE $1,030,000 $865,000 19.1%
GREENVALE $655,000 $556,250 17.8%
SUNSHINE $645,000 $550,000 17.3%
ESSENDON $1,315,000 $1,133,794 16.0%
PRAHRAN $1,485,000 $1,290,000 15.1%
HAWTHORN EAST $2,050,000 $1,800,000 13.9%
THORNBURY $1,017,000 $903,750 12.5%
FRANKSTON SOUTH $682,250 $607,000 12.4%
MALVERN $2,230,000 $1,985,000 12.3%
ASCOT VALE $995,000 $888,500 12.0%