Konrad Bobilak Logo

Homeowners earn big bucks every day they hold onto their house

HOMEOWNERS in parts of Melbourne are making as much as $1200 a day just by holding on to their houses, new research shows.

Victoria’s capital has overtaken Sydney to become the nation’s strongest performer for annual price growth in recent months — and a handful of suburbs are batting well above the city’s lofty average.

Figures from realestate.com.au and CoreLogic reveal northeastern fringe suburb Kinglake West recorded massive 51.6 per cent median house price growth in the year to June 30, to $580,000.

 
Kinglake West’s median price grew by 51.6 per cent in the year to June 30. 1092 Whittlesea-Kinglake Rd, Kinglake West, is for sale.
 

This was the biggest increase of all Melbourne suburbs in that period, well above the citywide 13.7 per cent gains, and equated to $541.10 per day.

It was followed by million-dollar suburb Essendon North, where house-owners earned $845.21 a day in capital growth, thanks to 44.4 per cent annual gains.

Abbotsford’s median jumped 38.2 per cent in the year, equating to $976.71 daily returns, and St Kilda’s, 33.7 per cent for $904.11 a day.

And houses in Princes Hill made an eye-watering $1205.48 a day, on average, due to 33.2 per cent annual growth.

Frankston North, Diggers Rest, Carlton and The Patch also had median house price rises of more than 30 per cent.

Realestate.com.au chief economist Nerida Conisbee.

 

Realestate.com.au chief economist Nerida Conisbee said population growth, economic strength, job opportunities and relative affordability compared to Sydney were driving Melbourne’s market.

She said while many of the city’s biggest growth suburbs were north of the CBD, they were more widely spread than in other Aussie capitals.

“If you’re buying in Melbourne, you’re going to do pretty well. You don’t need to buy in a really expensive suburb to see strong price growth,” she said.

Mason White McDougall Real Estate agent Donna Wilson said she’d been “blown away” by the performance of Kinglake and Kinglake West’s property markets over the past year.

She said the suburbs’ big 1000-2000sq m blocks, affordability and small town lifestyle were luring more families to the former “sleepy hollow”, while low available housing stock was pushing up prices.

Frankston North enjoyed a 30 per cent increase in its median house price to $405,600, equating to $256.44 a day. Picture: Tony Gough

 

Ray White Carrum Downs’ Maggie Raad said Frankston North offered similar lures for first-home buyers and investors, including rare 600sq m blocks: “Eight months ago, the average house cost $400,000. Now we’re getting another $100,000 on top.”

Tegan Mackie said young couples like herself and husband Scott were transforming Frankston North by revitalising its old housing stock.

They’re privately selling the three-bedroom house they renovated at 40 Rosemary Cres to move on to acreage, with a price guide of $440,000-$480,000.

The value of units and apartments has also spiked dramatically in several Melbourne suburbs over the past year, flying in the face of oversupply concerns.

Strathmore’s median unit price soared 53.8 per cent or $732.88 per day, and Aberfeldie’s, 51 per cent or $636.99 per day.

MELBOURNE’S TOP CAPITAL GROWTH SUBURBS

FOR HOUSES:

Kinglake West: median price up 51.6% to $580,000 = $541.10 increase per day

Essendon North: up 44.4% to $1,003,500 = $845.21 per day

Abbotsford: up 38.2% to $1.29m = $976.71 per day

St Kilda: up 33.7% to $1.31m = $904.11 per day

Princes Hill: up 33.2% to $1,767,500 = $1205.48 per day

Diggers Rest: up 32.3% to $395,000 = $264.38 per day

Carlton: 31.3% to $1,318,500 = $861.64 per day

The Patch: 31.2% to $665,000 = $432.88 per day

Frankston North: up 30% to $405,600 = $256.44 per day

Lower Plenty: up 29.1% to $980,000 = $605.48 per day

FOR UNITS:

Strathmore: median price up 53.8% to $765,000 = $732.88 increase per day

Aberfeldie: up 51% to $688,500 = $636.99 per day

 

Wheelers Hill up 34.6% to $825,000 = $580.82 per day

Rowville: up 32.2% to $582,000 = $388.77 per day

Chirnside Park: up 28.5% to $535,000 = $325.34 per day

South Kingsville: up 26.5% to $650,000 = $372.60 per day

Sandringham: up 25.4% to $720,000 = $399.45 per day

Mount Eliza: up 24.8% to $535,000 = $291.10 per day

Sunshine North: up 23.4% to $434,500 = $226.03 per day

Greensborough: up 22.6% to $596,000 = $301.37 per day

Source: CoreLogic and realestate.com.au, for the year to June 30. Suburbs must have had at least 10 sales for inclusion

 

This article was originally published by Samantha Landy, Herald Sun, July 21, 2017

 

 

© 2022 Konrad Bobilak | All Rights Reserved