The booming suburb where more than 1,000 homes sold last year

6 days ago 6

Population growth is fueling demand in this investor hotspot, which is bucking more than one Melbourne trend.

Just nine suburbs in Australia had more than 1,000 houses sell in the past year, and they've all got one thing in common - they're located on the outskirts of Melbourne in rapidly growing areas.

Clyde North is one of those suburbs, and it's been singled out as one of the top 100 suburbs across Australia with strong price growth prospects in 2026.

What is particularly surprising about Clyde North, located around 50km southeast of Melbourne's CBD, is that investors are swarming - which is not the story in other parts of Victoria, a state where investor taxes are the nation's highest.

But this outer suburb, just 10 minutes drive from Western Port Bay's northern shore, is undergoing a population boom. Over the last 10 years, it's swelled by 435%.

Matthew Scafidi, founder of buyers agency Abode Advocacy Group, called Clyde North "one of Melbourne’s fastest-growing suburbs".

Clyde North recorded 1,113 sales over the past 12 months, the 5th highest turnover in the entire country. Picture: realestate.com.au

The big appeal? According to Mr Scafidi, it's "exceptional affordability and long-term growth potential".

Clyde North's median house price sits at $750,000, up 4.2% over the last 12 months.

This beats Greater Melbourne's 3.4% annual growth, where median dwelling prices are now $854,000, according to the PropTrack Home Price Index.

Agent Aseem Jhanji at Empire Real Estate Agents Casey, a proud Clyde North local of eight years, says the suburb is a magnet for first time buyers and families seeking affordable new homes, with properties under $850,000 selling quickly.

The rapidly growing suburb is tipped to outperform in the year ahead. Picture: realestate.com.au

This is despite abundant supply in the southeastern pocket, where 1,113 houses have sold over the past 12 months, and 357 houses have become available in the past month alone.

"This shows you the depth of the market. I don't know any other suburb where there's been that many sales in one year. There were another 539 sold in nextdoor Clyde — but there are over 20,000 houses in these two suburbs, which are a lot bigger than your normal suburb."

Mr Jhanji said buyers like living in a new area that's safe and family-friendly.

"The houses here are brand new, unlike Cranbourne 10 minutes away where houses are often around 20 years old."

Investors are also swooping for deals, he said — despite Melbourne's investor slowdown due to doubled absentee surcharges, slashed land tax thresholds and hiked stamp duties aimed at boosting affordability and clearing the state government's Covid debt.

Mr Jhanji said two-storey homes were renting for over $800 per week and while there were plenty available, they weren't hanging around for long.

Investors and first-home buyers are flocking to the suburb. Picture: realestate.com.au

Mr Scafidi said the numbers were strong.

"It represents one of the city’s best opportunities for entry-level buyers and investors seeking solid yields and medium-term capital uplift as amenity continues to mature," he said.

"We're sure to see continued growth into the year."

Green space and new infrastructure

Mr Scafidi said Clyde North's location in Melbourne's southeast growth corridor was another plus.

"There's new infrastructure — schools, retail hubs, transport links — and a strong pipeline of housing development."

With another 3,000 homes scheduled to be built in the next 12 months, plus widened arterial roads, new primary and secondary schools, and a proposed train station whisking locals straight to the CBD as part of the Cranbourne line extension, agent Dilshan Wijerathna at UpHill Real Estate is upbeat about the future outlook.

The suburb is predominantly made up of relatively affordable brand or recently built homes. Picture: realestate.com.au

He said plenty of new people were moving into the area, many from the nearby suburbs of Cranbourne, Noble Park and Pakenham, which have similar median prices.

"If someone wants to buy a brand new house, this is one of the closest places to the city right now," Mr Wijerathna said.

He added that while properties over $1m were taking longer to sell, they were seeing slower price growth than cheaper houses, which was making them increasingly attractive to buyers.

"Once the markets start picking up, those properties over $1 million will start moving as well," he said.

But Clyde North isn't just about new infrastructure and affordability, it's also a lifestyle destination, with plenty of open green space, Mr Scafidi said.

"You've got the hilltop park for a sunset or a sunrise, and you've also got the Cascades Wetlands to walk as well."

Clyde North is one of 14 Melbourne suburbs nominated in this year's realestate.com.au Hot 100.

Now in its fourth year, the Hot 100 is compiled by a panel of experts including leaders of national real estate agencies, buyer’s agents, researchers, investors and an academic, with additional data and analysis from PropTrack.

Suburbs are nominated based on the following growth drivers:

Affordability, either low prices suiting buyers on a budget or relative affordability compared to nearby suburbs.
Amenity, being the level of lifestyle pluses, from bars and restaurants to boutiques and parklands.
Family appeal, such as dwelling type, perceived safety and proximity to good schools.
Location, including proximity to the CBD or major hubs, or closeness to natural amenity like beaches.
Investment prospects, from rental market conditions to expected imminent upside.
Gentrification, being the changing face of a suburb.
Population growth, representing a projected increase in the number of locals.
Demographic change, indicating a shift from the current make-up of residents, for example young families replacing downsizing elderly locals.
Infrastructure, looking at major investments in projects that will benefit the suburb or surrounds.