634 Spencer St, West Melbourne is for sale for $820,000-$900,000. West Melbourne was the suburb with the biggest price rise for houses in the last quarter.
Houses in nearly 130 Victorian suburbs are worth at least $10,000 more compared to three months ago, with signs the state’s property market has turned a corner.
New research from PropTrack has revealed that median house prices in 431 suburbs and towns across Victoria increased in the March quarter by as much as 5.5 per cent – equating to five-figure increases for several areas.
SEARCH YOUR AREA: Home price changes in every suburb revealed
Across Greater Melbourne, the suburbs of West Melbourne, Albion and Waterways experienced the largest change in their median house prices.
Since December, West Melbourne’s typical median has stacked on almost $60,000 in value to hit $1,148,748.
Waterways’ median has jumped by more than $52,000 to reach $1,526,371, while Albion’s median has risen by more than $25,000 to sit at $744,058.
For units, Clarinda recorded the largest rise, 5.7 per cent, achieving a $741,409 median.
Overall, typical Melbourne house values fell by 2.38 per cent in the past year, but some suburbs strayed from the trend.
One of the top-performing suburbs in the 12 months to March this year was Yarramabat – where the median house price increased by more than $114,200 to hit $1,906,191.
The four-bedroom house at 56 King Edward Ave, Albion is listed for sale with $730,000-$760,000 price hopes.
Albion’s median house price in March was $744,058.
RELATED: 400 homes from $10bn: Albo’s huge housing flop
How to pay off your home faster as mortgage-free hotspots revealed
Next on the list for gains in median value was Coolaroo, boasting a 5.8 per cent jump from $507,504 in March 2024 to a $536,865 median in the last month.
Some regional Victorian areas recorded even bigger dollar gains, with Kerang ($317,543), Tongala ($426,975) and Merbein ($362,189) median house prices soaring by as much as 10.4 per cent in the past year.
PropTrack economist Angus Moore said while it was still early days, there were signs of growth in Melbourne’s home prices.
“We’ve been seeing, for much of the past few years, prices have been kind-of flat to falling,” Mr Moore said.
“We may be starting to see a bit of a pick-up in Melbourne.”
He said that Melbourne was starting to look relatively affordable for homebuyers compared to capital cities such as Adelaide, Brisbane and Perth.
The two-bedroom townhouse at 17D Inverness St, Clarinda is listed for sale with a $700,000-$770,000 price guide.
Clarinda’s median unit price as of March is $744,228.
He pointed to the example of South Australia, where 18 areas experienced a 20 per cent or higher increase in their median house price in the 12 months to March.
Back in Victoria, Mr Moore said that further interest rates cuts would increase home hunters’ borrowing capacities and improve mortgage serviceability, further driving demand.
“Affordability is probably more of a constraint elsewhere in the country,” Mr Moore said.
“It’s still certainly a constraint in Melbourne, don’t get me wrong, but it hasn’t deteriorated as badly as it has in some other parts of the country.”
RELATED: Home price changes in every suburb revealed
Property Home Base director Julie DeBondt-Barker said Melbourne’s property market was “waking up” with an increase in both homebuyers and interstate investors turning their eye to the city.
“There’s people packing up in Sydney and saying, ‘It’s just not affordable’. A lot of first-home buyers are starting their journey here in Melbourne,” Ms DeBondt-Barker said.
“(Increasing demand is) still area-sensitive and house-sensitive; it’s certainly not any sign of a boom, but it’s waking up.”
The four-bedroom house at 2-18 Astons Rd, Yarrambat is listed with a $2.3m-$2.5m price guide.
Yarrambat’s median house price as of March is $1.906m.
She added that Melbourne’s north and east had picked up in popularity, whereas the bayside area was “still a bit sleepy”.
Ms DeBondt-Barker predicted that the city’s property market would start ramping up in May, ahead of a big winter.
“The brokers are all very busy doing the pre-approvals and that’s like a canary in the coal mine,” she said.
“We actually are almost having to put a pause on bringing on any new clients.
“So the buyers are there, but the homes aren’t there, and everybody (home sellers and agents) seems to already (have) put a bit of a pause on for Easter and Anzac Day and the election.”
— To see the home price in every suburb across Victoria, click here.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Shock RBA call to spark price surge
How Coalition housing move could change everything
‘Absolute struggle’: Vic areas copping most home loan pressure
sarah.petty@news.com.au
English (US) · 