On the first Tuesday in November, the Melbourne suburb of Flemington is flush with cash as punters flock to watch the running of the Cup… but this year, it’s not just the racetrack where millions are flowing.
Significant property price growth across Melbourne over the past three months has led to 10 new suburbs reaching the prestigious six-figure median house price status.
Recent market momentum is thanks in large part to the return of private inspections and on-site auctions after the city’s latest extended lockdown, according to Eleanor Creagh, senior economist at REA Group’s PropTrack.
“As Melbourne has emerged from a long lockdown, the auction capital has fired up with the city welcoming the return of on-site auctions leading to a run of Super Saturdays,” Ms Creagh said.
“With the return of private inspections in September, Melbourne’s housing market is back in action and the week before last, Victoria clocked its second-biggest week of sales this year.”
A lift in confidence all round
Seller confidence is growing as COVID-19 restrictions ease, Ms Creagh said, with new Melbourne listings on realestate.com.au climbing almost 75% in September as vendors move to meet strong buyer demand.
“The continued return of vendor confidence is a welcome development for buyers as we know demand remained elevated on realestate.com.au, even as lockdowns affected activity with less stock and fewer transactions.
“Given the selling season cools off as Christmas approaches, many of these vendors are now looking to sell over November and we continue to see a rise in the number of properties up for sale.”
Low mortgage rates and closed international borders also played their part in contributing to exceptional price growth in the city, with people putting money that may have otherwise been spent on overseas trips towards property.
PropTrack data shows dwelling prices in Greater Melbourne have increased by 13% over the past 12 months.
Frankston has cemented itself as one of the bayside suburbs to watch. Picture: Getty Images
Melbourne suburbs join the million dollar club
Ten Melbourne suburbs have seen their median house prices hit $1 million over the past quarter.
These newly minted million-dollar suburbs have a lot in common – most are by the water as the draw of the coastal lifestyle in the pandemic continues to reign.
Frankston South’s median house price rose 4.4% in the three months to September to $1.02 million.
Janice Dunn, director of Janice Dunn Real Estate, said Frankston South’s increase had much to do with its ‘centralised’ nature – something that’s increasingly important following lockdowns.
“Motivation has completely changed, and while once it was about finance, with city buyers coming to the area to find something cheaper, now it’s all about lifestyle,” Ms Dunn explained.
“Frankston South is centralised and we have everything you need within the 5km, which people are keeping in mind after the lockdown rules.
“People looking to buy have been in all age groups, from first homebuyers to retirees.”
Melbourne’s Altona is one of the city’s newest million-dollar suburbs.
In that same period, the median price for a house in Altona, known for being home to the western suburbs’ largest swimming and recreational beach, reached $1.08 million – an increase of 9%.
Situated on a rocky outcrop on the south-eastern end of the Bellarine Peninsula, Point Lonsdale’s median house price rose 7.4% to $1.07m.
Lake Wendouree, however, was the highest flyer of all, with median house prices rising 31.2% to $1.21 million by the end of September, up from $922,500 in the June quarter.
Also joining the million-dollar club were Heathmont ($1.03 million), Newtown ($1.02 million), Oak Park ($1.04 million) and Torquay ($1.05 million).
Maribyrnong and Rye both edged onto the list, reaching a median house price of exactly $1 million.
Ten newest million-dollar suburbs
Median house price at June 30
Median house price at September 30