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Melbourne’s million-dollar boom: REIV

New REIV data shows that one in three Melbourne suburbs now have a median house price of at least $1 million. 

In the year to September 30, 154 Melbourne suburbs recorded a median house price of $1 million or higher from a total of 402 suburbs.

A remarkable 90 per cent of suburbs within 10km of the CBD have a million-dollar median house price, while almost 50 per cent of suburbs in the middle ring are also in the million-dollar club.

Over the past year, 44 suburbs have joined the million-dollar list including Mordialloc ($1.14 million), Flemington ($1.1 million), Kingsville ($1,052,500) and Coburg ($1 million).

REIV President Richard Simpson said the Melbourne property market had boomed in the past decade, growing from just 17 million-dollar suburbs in September 2007.

“The city’s property market has seen exceptional growth over the past decade with demand for housing being driven by high levels of interstate and overseas migration.”

“Proximity to the city has always been a key consideration for buyers; however, strong price growth in recent years has seen the premium market expand well beyond the inner city suburbs.”

“The bridesmaid effect has certainly impacted on house prices in the city’s middle ring, with buyers looking for new growth areas within 20km of the CBD. Ten years ago, only three middle ring suburbs had a median house price of $1 million, now middle Melbourne is home to almost 60 million-dollar suburbs.”

“Gentrification has also seen once unattractive inner city suburbs grow in stature, particularly in the city’s north with Brunswick, Fitzroy and Collingwood all commanding a median house price of at least $1 million.”

Mr Simpson added that the city’s east and south east had experienced the strongest price growth over the past decade.

“Clayton has been a real standout in terms of price growth with its median house price increasing 210 per cent over the past decade to $1.3 million.”

Other top performing suburbs over the past decade include Box Hill, Blackburn South and Doncaster East.

Million dollar suburbs – 2017 v 2007

Sep-17 Total $1 Million %
inner 77 69 90%
middle 122 59 48%
outer 203 26 13%
Metro 402 154 38%
Sep-07 Total $1 Million %
inner 75 12 16%
middle 124 3 2%
outer 164 2 1%
Metro 363 17 5%

Most expensive suburbs (minimum 50 sales in the 12 months)

Suburb Sep-17
Toorak $4,550,000
Brighton $2,775,000
Canterbury $2,750,000
Malvern $2,600,000
Armadale $2,360,000
Balwyn $2,300,000
Caulfield North $2,277,500
Hawthorn $2,200,000
Camberwell $2,180,000
Kew $2,165,000

Top growth suburbs over the past 10 years (minimum 50 sales in the 12 months)

Suburb Sep-17 Sep-07 Growth
Clayton $1,300,000 $420,000 210%
Box Hill $1,720,500 $600,000 187%
Blackburn South $1,210,000 $458,944 164%
Box Hill North $1,321,000 $505,000 162%
Doncaster East $1,380,000 $529,500 161%
Blackburn $1,410,000 $543,000 160%
Box Hill South $1,403,944 $545,000 158%
Mont Albert North $1,610,000 $630,000 156%
Niddrie $1,155,000 $455,500 154%
Mount Waverley $1,402,000 $553,000 154%

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