HOUSE prices soared more than 10 per cent in 130 Melbourne suburbs in the year to the end of March, latest figures show.
The boom has seen values sky-rocket hundreds of thousands of dollars in some well-heeled areas, according to RP Data’s research.
But a host of cheaper suburbs were among more than 80 to outpace the wider Melbourne growth of 12 per cent over the year.
Home hunters will have their chance to join the market this weekend with more than 1100 auctions scheduled. The best results for affordable houses – suburbs with a median value below $600,000 – were in Seville East where values grew $63,500 (23.6 per cent) to $333,000.
In Mt Dandenong they rose $98,000 (22 per cent) to $544,400 and Sandhurst, near Frankston, up $92,600 (21.2 per cent) to a $528,900 median.
But there were also strong gains in the west, with Melton South up $28,000 (12.1 per cent) to reach a new median of $260,381, and Werribee gaining almost $38,000 (13.1 per cent) to reach a median of $326,684.
The top end of town had the biggest growth, with Hawthorn East the strongest performer – gaining $365,000 (32.1 per cent) to reach a new median value of $1.502 million.
But more than half of the 245 suburbs to achieve a healthy 6 per cent growth or more had affordable median values, below $600,000. Just 35 suburbs lost value across the 12 months ending in March.
The impressive growth was only narrowly behind the 15 per cent growth in the lead-up to the previous market peak in October 2010.
RP Data spokesman Robert Larocca said while the suburbs of the inner east and inner south had mostly reflected a recovery of value they had lost in recent years, there had been strong growth in the north-east and outer north – in areas such as Ringwood North, Lilydale and Diamond Creek.
“That’s what happens when the Melbourne market completes its recovery from the Global Financial Crisis and moves into a new growth phase,” Mr Larocca said.
*Article by: Nathan Mawby, ‘Heraldsun’ April 5, 2014