The spring market has invigorated Melbourne's real estate sector, propelling a significant number of suburbs into or back into the exclusive million-dollar club. Latest median price figures underscore a widespread rebound across the city, signaling a robust and sustained cycle of growth that is capturing the attention of developers and agencies across the region.
Recent data confirms that 11 suburbs achieved or re-entered the $1 million median house price mark during the September quarter. Among the notable entrants, Taylors Hill in Melbourne’s outer west recorded a median house price of $1.04 million for the first time. Other key suburbs now back above seven figures include Airport West, Avondale Heights, West Footscray, Mornington, Ringwood, Ringwood East, Taylors Lakes, Watsonia, and Yarra Glen.
A Broad-Based Market Recovery
The market's momentum is evident across various price points. At the prestige end, Brighton East was a standout performer, with its median house price surging an impressive 31.8% for the quarter. Surrey Hills, in Melbourne's leafy east, also recorded substantial gains, reflecting strong demand for high-end properties.
Simultaneously, more accessible corridors are experiencing intense buyer activity. Suburbs like Melton South and Sunshine West in the north and west have emerged as surprise movers, with St Albans, Glenroy, and Epping also seeing positive growth. This widespread demand is driven by buyers actively seeking value near essential transport links and quality schools, often seeing investors and upgraders bidding side-by-side.
According to REIV president Jacob Caine, "What we’re seeing now is a genuine, sustained cycle of growth, both at the prestige end... and at the affordable end." This sentiment is echoed by observations from leading agencies on the ground, indicating a confident market outlook.
Fierce Competition and Strategic Opportunities
The competitive landscape is largely shaped by limited property listings and persistent demand for family homes. For properties under $950,000, competition is particularly fierce, with buyer's advocate Cate Bakos noting significant "urgency and FOMO" in this segment. First-home buyers are finding themselves in direct competition with upgraders and investors, exacerbating thin stock levels. This pressure is even pushing units and townhouses to auction, making the market tougher for buyers with finance considerations.
Buyers are increasingly showing flexibility, compromising on dated interiors or looking further afield to secure a foothold in the market. Interestingly, boutique apartments and villas are emerging as potentially undervalued options, offering strong locations, lower owners’ corporation fees, and often superior long-term value compared to new high-rise developments.
Melbourne's Allure to Interstate Investors
Melbourne's relative affordability compared to Sydney is proving to be a significant draw for interstate investors. Anthony Webb of Belle Property and Hockingstuart notes that Melbourne is "still seen as undervalued compared to the other east coast capitals," with Sydney buyers specifically targeting Melbourne for capital growth over the next one to three years. Areas like Preston and its surrounding northern suburbs are experiencing strong demand, while auctions across the city, particularly those under $1 million, continue to attract heavy competition.
With spring typically ushering in more listings, market observers caution that if supply tightens again early next year, price growth could accelerate further. The consensus among market experts is clear: "now’s the time to act" for those looking to engage with Melbourne's flourishing property market.
In this dynamic environment, comprehensive market understanding and strategic execution are paramount. Axtra Property, a master property agency based in Melbourne, provides critical insights and expertise into these evolving trends, guiding developers and real estate agencies to navigate the complexities and capitalize on the significant opportunities emerging across the city's diverse and growing real estate landscape.