Melbourne has 17 new suburbs with a million-dollar median house price, latest data from the Valuer-General reveals.
One council in particular seems to be growing steadily in value, and that’s the Glen Eira council – which welcomed four new suburbs into the million-dollar club in 2014.
Those include Caulfield, Bentleigh, Glen Huntly, Ormond & Caulfield East.
Caulfield East’s median price jumped by 36% to $1.15 million. This equates to a $300,000 increase in the year to 2014.
Glen Eira deputy mayor Mary Delahunty said the gains in Caulfield East might surprise people. “It’s always traditionally been a suburb full of housing for families… a lot of California bungalows and a good mix of entry-level houses,” she said.
Rising prices in the municipality have increasingly pushed young families into smaller subdivided blocks and apartments.
This is a pattern that we’re beginning to see throughout the inner to middle ring suburbs of Melbourne; and ever-more reason why we advise our buyers to stay away from the over-priced, often over-supplied inner ring suburbs of capital cities. Great growth potential can always be found in those fringe suburbs that are supported with strong infrastructure foundations, lifestyle amenity and of course, public transport facilities.
So what’s driving this growth?
Domain Group Senior Economist Dr. Andrew Wilson said low interest rates had been a key driver of price growth, allowing buyers to borrow and pay more. As prices push up, buyers were turning to neighbouring suburbs for affordability.
“The strength is radiating out from what have been the strong parts of the Melbourne market over the last few years, particularly those aspirational suburbs in the inner south, the inner north and the inner east,” Dr Wilson said.
“There is a perception in those middle and higher-priced suburbs that it’s a good time to buy.”