Looking to invest in a booming Melbourne suburb?

Melbourne’s property market continues to show strong growth,

with several suburbs experiencing significant house price increases over the past five years. As a leading real estate agency in St Albans and surrounding areas, Create Real Estate can help you navigate this dynamic market and find the perfect investment opportunity.

Here’s a table summarising the recent report on Melbourne’s fastest-growing suburbs, incorporating data from the Real Estate Institute of Victoria (REIV):

Over the past five years, certain neighborhoods in Melbourne have witnessed remarkable growth in unit prices. Mitcham, for instance, saw an impressive surge of 21.3% to reach $752,000, closely trailed by Highett with a 19.6% increase to $658,000, and Brighton with a rise of 17.9% to $1.2 million.

Meanwhile, the overall median house price in Melbourne rose by 22.1% during the same period, signaling positive momentum in the market. While still below its peak, recent weeks have shown signs of improvement, with clearance rates suggesting modest price increments. Prospective homebuyers are exhibiting renewed interest, anticipating a Reserve Bank rate cut later this year.

It’s worth noting that this analysis excludes the Mornington Peninsula. However, coastal areas like Blairgowrie, Sorrento, and Rye experienced even more significant growth during the lockdowns, with increases of 66.3%, 52.9%, and 52.8%, respectively.

Terry Rawnsley, Director of Planning and Infrastructure Economics at KPMG, attributes the robust performance of suburbs further from the city to persistent affordability challenges and evolving preferences during lockdowns. Rawnsley notes a ripple effect in middle-ring suburbs, where residents seek larger homes away from the city center due to pricing constraints and changing lifestyle preferences.

“In these middle-ring suburbs, there’s a discernible shift away from the inner city,” Rawnsley observes. “Detached four-bedroom houses are increasingly favored over compact two-bedroom townhouses, reflecting changing priorities among homebuyers.”