It’s the question most often asked in the property industry…what are the suburb hotspots in the market?
Melbourne’s house prices have been booming since 2012, so what are the top ten performing suburbs over that time?
Unfortunately for investors, the data from Domain Group is largely retrospective because the market is set to cool for the coming months so they may have missed the boat but it’s interesting to look at nonetheless.
The Melbourne property boom got going in 2012 off the back of interest rate cuts in November, and then December of 2011.
Since the boom began in 2012, Melbourne house prices across the board have risen from a median price of $530,774 to $843,674.
As for the best performer, South Yarra takes the honours, with a whopping 5-year growth rate of 132 per cent. That means a house in South Yarra that cost $750,000 in 2012 would now cost around $1,750,000.
Unsurprisingly, neighbouring suburbs to South Yarra such as Middle Park, Toorak, Armadale and Windsor were all also in the top ten.
Jellis Craig’s Nathan Waterson told Domain that it was mainly buyers cashing in on the success of suburbs like Balwyn and Glen Waverly that were making waves in the South Yarra.
“We’ve seen owners of those homes in the east who would not have been able to afford South Yarra before, but they are cashed up and want to enjoy closer proximity to the city,” he said.
Particularly with homes in that $1.5 million to $3 million bracket, which are largely single fronted cottages, they are in huge demand from downsizers.”
Top 10 suburbs for house price growth since 2012
Suburb Median Growth rate
South Yarra $1,780,000 132.3%
Middle Park $2,225,000 129.4%
Parkville $1,555,000 122.1%
Toorak $4,325,000 116.3%
South Melbourne $1,400,000 104.4%
Armadale $2,300,000 100.0%
Windsor $1,500,000 100.0%
Hughesdale $1,310,500 99.8%
Kew East $1,840,500 99.0%
Blackburn South $1,182,000 97.0%