Melbourne’s best suburbs for house and unit price growth for March quarter 2017
A handful of once-overlooked Melbourne suburbs — some arguably still under the radar — have been rapidly slipping out of reach for a growing number of home buyers.
It now costs $570,000 to buy a typical house in Thomastown, where the median was about $440,000 just a year ago.
The northern suburb, 17 kilometres from Melbourne’s CBD, is among the fastest growing suburbs for house prices over the 12 months to March, alongside Brunswick East, West Footscray, Seaford and Highett, Domain Group data shows.
A four-bedroom home on Rupert Street in West Footscray sold for $1.3 million just before Christmas last year. Photo: Jas Stephens
The best suburbs for unit price growth include Noble Park, Altona, Toorak, Blackburn and Bentleigh.
Five bidders competed for 5 Waratah Street, Thomastown last year. Photo: Harcourts
It was inevitable house price growth would ripple out to Thomastown, and its proximity to the city was comparable to Blackburn, where prices were “through the roof”, he said.
Among those shifting from the inner north include a young family, who trumped four buyers for a three-bedroom house at 5 Waratah Street last October. They paid $870,000 — $170,000 over reserve — for the keys.
The former Brunswick synagogue was bought by a local family for more than $2.6 million.Photo: Jellis Craig
On the other side of the city, West Footscray’s median house price jumped 29.2 per cent over the past year to $885,000, with million-dollar sales becoming increasingly common.
A West Footscray record for a family home was recently achieved after a four-bedroom house at 15 Rupert Street sold for $1,325,000 – $25,000 over reserve. A family upgrading from Moonee Ponds trumped two other bidders to secure the keys.
Jas Stephens’ Craig Stephens said the suburb had a good selection of period-style homes built in the 1940s such as California bungalows, usually on good-sized blocks.
Many young families could not afford those homes in Yarraville and Seddon because they sold for well over $1 million, and West Footscray offered better value, he said.
The suburb always had potential for growth because it was only seven kilometres from the city, and popular cafes and restaurants had also popped up in the past 12 months, Mr Stephens added.
Lifestyle was also cited as a drawcard in Brunswick East, where the median house price climbed 41.7 per cent to $1,183,000. It is the first time the median has smashed through $1 million.
Jellis Craig Brunswick director Greg Cusack said about one in four buyers in the north came from the east, whereas buyers would traditionally not cross the river.
Empty nesters also chased their children and grandchildren who had already moved to the northern suburbs, and recognised the value the suburbs offered, he added.
Last month, a former synagogue at 32 Lord Street was snapped up by a local family for more than $2.6 million. It is believed to be a record price for Brunswick East.
Nearby Brunswick West house prices also grew 32.6 per cent over the past year to a median of $988,000.
In the south-east, a typical buyer now needs a budget of $645,000 for a house in Seaford — about $140,000 more than a year ago.
But Hocking Stuart’sDaniel Wright said Seaford was still relatively affordable to achieve the Great Australian Dream: to buy a house on a full block. The beach and EastLink were drawcards, he said.
The only suburbs to record a slight fall in median house price across Melbourne were Hawthorn East — 4.4 per cent — Kew, 0.5 per cent, and Healesville, 0.4 per cent.
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