Those who have been in the property market for some time invariably have stories of the one that got away – that first home, sold years ago, now worth close to $1 million; or that bargain investment unit in a run-down area, now gentrified and expensive.
The REIV has been compiling median house prices for Melbourne suburbs for more than 20 years, making data-based comparisons possible. And while prices in some areas may have gone up significantly, there are also many areas that still have room for growth.
Our latest figures show that over the past year Melbourne has experienced an 11 per cent gain for median house prices and almost 7 per cent for units.
By comparing prices over the past five years, a likely holding time for many investors and home owners, it’s clear just what an excellent investment property can be.
Melbourne’s $643,000 median house price for the December quarter was up 58.6 per cent on the median for that quarter in 2008. And the city’s median unit and apartment price for the same period was up 38.9 per cent on five years ago.
While the increases were less dramatic in regional Victoria there, too, property has shown a substantial increase over the past five years. The December median house price of $320,500 was up 25.2 per cent on the same quarter in 2008. The apartment median of $237,500 was up 15.9 per cent.
Melbourne’s bayside and eastern suburbs – areas such as Balwyn North, Surrey Hills and Saint Kilda East – have shown the most growth over the past year, but also on the list are popular and well-located suburbs such as Fitzroy North, Blackburn, Ringwood and Newport.
Heading into 2014, the top five most affordable areas, based on their median house prices, are: Melton West, Cranbourne, Wyndham Vale, Carrum Downs and Cranbourne West; and for units: Sunshine, Frankston, Seaford, Dandenong and Noble Park.
If you are house-hunting in coming months, remember to do your research with much of this data (including information) provided online. And if you find a location you like, it’s worth broadening your search to surrounding suburbs, which are often more affordable and provide a viable alternative.
Armed with the right information, you can more easily find the property to best meet your needs. And, one day, it may end up on the $million list, alongside some of today’s top house and suburbs.
*Article by: REIV February 2014