A third of Melbourne’s suburbs now have a median house price of at least $1 million.
The Real Estate Institute of Victoria data says 154 out of Melbourne’s 402 suburbs have a $1 million or more median house price but that figure jumps to 90 per cent when you’re just talking about inner ring of suburbs within 10kms of the CBD.
For the next ring of suburbs, those that are 10-20 kilometres from the city, around half have a median house price of over $1 million.
REIV president Richard Simpson told the ABC that 44 suburbs joined the $1 million club this year.
“Ninety per cent of suburbs in the inner ring have a median house price of over $1 million, that’s what you sort of expect,” he said.
“Suburbs such as Moorabbin, Craigieburn, Narre Warren North, those types of suburbs, they’re the ones we’re seeing the best price growth.”
“We’ve had unprecedented growth in real estate prices over the last 10 years, but more particularly in the last few years,” he said.
“It’s mainly driven by low interest rates and also high population movements to Melbourne from interstate and overseas that’s put pressure on housing.”
Mr Simpson said people can expect to see more of the outer suburbs heading towards the $1 million club in the future.
“And we’ll see the price in the outer suburbs coming up towards that $1 million. Suburbs in that middle ring, people can’t afford those anymore, so what we’re seeing is a lot more competition in the outer ring.”