INDUSTRY NEWSReal Estate NewsVIC Real Estate News

How much is a postcode worth? REIV looks at price differences within suburbs

Buyers are often encouraged to purchase the worst house in the best street, but new REIV data suggests the postcode may be worth more than the street name โ€“ up to $836,000 more to be exact.

In the year to June 30, homes on Beach Rd experienced the largest price discrepancy between postcodes with apartments in Hampton recording a median price of $1,361,000 – $643,000 more than apartments also located on Beach Road but in Black Rock and $836,000 more than those in Mentone.

A postcode also made a six-figure difference on Chapel Street with apartments in desirable South Yarra recording a median price of $772,000 – $230,000 more than those in the St Kilda end of the street.

Apartment prices on Dandenong Road also varied significantly depending on their postcode with those classed as Prahran fetching $215,000 more than those in Malvern East.

Postcodes also had a considerable impact on apartment prices in Toorak Road, Whitehorse Road and Burwood Road.

REIV President Joseph Walton said a homeโ€™s postcode, which can change depending on which side of the street you live on, generally adds more value than a street address.

โ€œGiven there are quite a few Melbourne roads spanning multiple suburbs, a postcode is now often worth more to the value of a home than a street address.โ€

โ€œSuburb rezoning in the past decade has resulted in hundreds of thousands of dollars being added to the value of many homes overnight โ€“ particularly at the higher end of the market.โ€

โ€œBuyers value an exclusive suburb address and while there are a number of streets that remain highly sought after, such as St Georges Road in Toorak, it is often the postcode that delivers real value.โ€

โ€œBuyers looking to purchase in a desirable street should do their research because they may be able to save a significant sum by considering a home a couple of blocks further down the road.

 

Show More

Azal Khan

Azal Khan was a in-house features writer for Elite Agent Magazine.