One in three Melbourne suburbs now have a median house price of at least $1 million, and the once-affordable outer suburbs are also on the rise, according to Victoria’s leading real estate body.
The latest data from the Real Estate Institute of Victoria found 90 per cent of suburbs within 10 kilometres of the CBD and almost half of suburbs in the middle ring – between 10 and 20km – are now in the million-dollar club.
Ten years ago only three middle-ring suburbs had a seven-figure median price.
REIV president Richmond Simpson said 154 of Melbourne’s 402 suburbs recorded a median house price of $1 million or higher.
A staggering 44 suburbs made the jump in 2017, including Mordialloc on Melbourne’s bayside, Kingsville in the inner west, and Coburg in the north.
“Ninety per cent of suburbs in the inner ring have a median house price of over a $1 million, that’s what you sort of expect,” he said.
“Suburbs such as Moorabbin, Craigieburn, Narre Warren North, those types of suburbs, they’re the ones we’re seeing the best price growth.”
Clayton, 19 kilometres south-east of the city, had been a standout according to Mr Simpson. Its median house price increased 210 per cent over the last decade – now at $1.3 million.
“We’ve had unprecedented growth in real estate prices over the last 10 years, but more particularly in the last few years,” he said.
“It’s mainly driven by low interest rates and also high population movements to Melbourne from interstate and overseas that’s put pressure on housing.”
With Melbourne’s population still growing at a strong rate, the REIV said it’s likely more suburbs will join the million-dollar club.
“And we’ll see the price in the outer suburbs coming up towards that $1 million. Suburbs in that middle ring, people can’t afford those anymore, so what we’re seeing is a lot more competition in the outer ring.”