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Sought-after Melbourne suburbs where house prices rose by double digits in 2023!

Dear Fellow Property Investors,

A handful of Melbourne suburbs recorded double-digit property price increases over 2023, bucking the city’s wider trend of modest growth.

Melbourne’s median house price median rose 2 per cent to $1,047,000 over the 12 months to December, and its unit price grew 4 per cent to almost $580,000 in the same period, the latest Domain House Price Report showed.

In the ever-popular inner north suburb of Fitzroy, however, house prices increased 16.4 per cent to a median $1.63 million last year. Unit prices in neighbouring Fitzroy North also shot up over the year, up 12.5 per cent to nearly $617,000.

Burwood (up 11.9 per cent to $1,411,000) and Maribyrnong (up 11.9 per cent to $1,031,000) had the next highest house price growth, and Notting Hill (10.8 per cent to $385,000) and Bayswater (10.5 per cent to almost $608,000) were the closest for units.

Domain chief of research and economics Dr Nicola Powell said the growth was out of character for Melbourne. “There are a handful of suburbs that have seen double-digit increases and declines, but the bulk of suburbs haven’t seen a lot of movement in the past 12 months,” she said.

Powell said Fitzroy and Fitzroy North had over-performed particularly when compared against blue-chip suburbs which typically lead market movements.

Melbourne suburbs where property prices rose most. Konrad Bobilak

Nelson Alexander agent Jonathan West said sought-after suburbs tended to help boost prices of their neighbours, particularly if they held high-quality homes. Brunswick East, for example, recorded house price growth of 4.3 per cent over 2023 to a median of $1,249,000.

“It’s the connection suburb to Fitzroy North and Carlton North,” West said. “They will start coming out of Carlton North and Fitzroy North and look in Brunswick East to see what’s around, then they’ll hop to Brunswick and Brunswick West if there’s nothing there.”

Brunswick West had less spillover effect, however. House prices there fell 19.8 per cent to $923,000 over the year.

West said the Brunswick West neighbourhood included homes which needed more work, and didn’t attract the same premiums as turnkey properties.

“Brunswick East is more expensive, there’s no doubt about it. With Brunswick West, you get bigger blocks and wider streets,” he said. [The median price] is based on those older style double-fronts that need a lot of work.”

Prices fell the furthest in the unit markets of Clayton South (down 23.2 per cent to $460,000) and St Kilda West (down 20.7 per cent to $486,000), and for houses the biggest drops were in Elwood (down 19.8 per cent to $2,085,000), Brunswick West and Alphington (19.4 per cent to $1.55 million).

Westpac senior economist Jarek Kowcza said the demand for renovated homes was a common trend because of Australia’s high inflation, particularly in the construction sector.

“Properties that are ready for people to move into are really popular,” he said. “The cost of building a new home has been one of the main contributors to inflation.

“So that’s meant the cost of renovating the home has really increased. The availability of staff and materials are also a factor.”

Let me ask you something…

Do you have a game plan for 2024?

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which, in my opinion, already bottomed out in November 2022), again?

Or, will you join them?    

So, what are you waiting for?

Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

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Dear Fellow Property Investor,

The Reserve Bank of Australia’s (RBA) unprecedented monetary tightening, which has seen the largest and sharpest rise in interest rates in Australian history, has done little to curb home buyer enthusiasm.

CoreLogic recorded the strongest preliminary auction results in three weeks, with 73.8% of homes taken to auction nationally returning a successful result.

It was also the eighth consecutive week that a preliminary clearance rate of 70% or more was recorded:

Graph: Capital City Auction Stats

Sydney recorded a preliminary clearance rate of 78.7%. This was 4.2% higher than last week’s result (74.5%), which revised to 70.8% at final figures.

However, Melbourne recorded its lowest preliminary clearance rate in 11 weeks, down 2.8% from last week’s preliminary rate of 72.9%, which was revised to 69.5% at final numbers.

The next chart plotting quarterly growth shows that home values continue to rise in the face of the RBA’s aggressive tightening:

Sydney leads the pack, with values soaring by 4.9% over the quarter. This has driven values at the 5-city aggregate level up by 3.4%.

Indeed, values at the 5-city aggregate level have now rebounded by 4.2% from their 7 February low, driven by a very strong 6.4% rebound across Sydney:

Westpac recently described the current house price rebound as highly unusual given it has occurred despite ongoing interest rate rises and off low transaction volumes.

“Housing recoveries typically only emerge once the RBA is actively cutting rates or is very clearly poised to do so. Price gains also tend to follow a sustained lift in turnover, not vice-versa”, Westpac noted.

Unusual is an understatement given mortgage rates have roughly doubled since the RBA began tightening and borrowing capacity has shrunk by around one-third.

The positive forces of record immigration, soaring construction costs and limited stock on market continue have created FOMO (fear of missing out) and continue to push house prices higher, despite the RBA’s aggressive tightening efforts.

Let me ask you something…

Do you have a game plan for 2023? 

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which in my opinion by the way has already bottomed out in November 2022), 

Or will you join them? 

So, what are you waiting for? 

Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!

Click HERE to reserve your seat now!

Book Real Estate Investing Fast-Track Weekend

Seats are strictly limited so book NOW in order to avoid future disappointment…

Don't take our word for it...see what our past attendees have to say about the event!

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