Melbourne suburb where house prices rose the most amid foreclosure
Melbourne’s outer suburbs took on new meaning during the pandemic, with house prices rising by more than 20% in some pockets as buyers move out of the city center for more space.
Vendors take the opportunity to move locally, in the Victoria region or interstate, in search of their own change of scenery after the long blockages.
Home prices surged in leafy northeastern suburbs, up 27.5% in Diamond Creek to a median of $ 950,000 in the 12 months through September, the latest Estate House Price Report find. Strong increases were also recorded at Warrandyte (up 22.5% to $ 1,347,500) and Viewbank (up 20.9% to $ 1,185,000).
More than 120 Melbourne suburbs posted double-digit price increases – excluding the Mornington Peninsula – many in outer areas ranging from Frankston to Lilydale, Taylors Lakes and Sunbury.
It’s a change from the pre-COVID era. In 2019, the biggest movers were desirable indoor neighborhoods such as St Kilda East, Elwood, Armadale and Canterbury.
Long periods of remote work and study have taken away the daily commutes and freed many families from the need to live near the office, while also creating a desire for a home office and a garden.
But the timing of the pandemic also played a role, said Simon Kuestenmacher, co-founder of The Demographics Group.
“This happened at a time when the millennial generation is finally starting to have children,” he said.
“So that means you leave Brunswick, you leave Fitzroy behind and move to where you can afford a three bedroom house. “
He expects the change to continue even as high vaccination rates reopen city centers, but said the order of magnitude was in question.
Perhaps ‘knowledge workers’ will head to the CBD offices for collaborative tasks and to meet colleagues, then spend a few days a week at home and enjoy the extra time with family, especially since employees carry more leverage in an age when employers struggle to find enough. skilled workers, he said.
Jellis manager Craig Eltham, Chris Chapman, said he has seen a large influx of family buyers from nearby suburbs looking for more space to work and learn from home.
“Prices have certainly increased significantly in the last 12 or 18 months,” he said. “We think a bit of heat has come out of the market in the last few weeks – it’s a factor of more stock.”
Some of its salespeople are downsizing to relocate to regions or the coast, and it has seen more interstate movement than in previous years.
Further south, the Frankston region saw strong growth with Frankston North (up 22.2%) and Frankston South (up 21.2%) in the top 10. Frankston proper was up 12.5 percent.
The Harcourts Central (Frankston) officer in effective control, Gerard Cosgrave, responded to the demand for shoppers leaving the city center in search of value for money and a lifestyle on the waterfront. the bay while working from home.
Buyers have realized that the area is more affordable than the area around Mount Eliza or Chelsea, he said.
“People realized, ‘Why is this the case? There is an opportunity here, “and I took the opportunity,” he said.
“People work from home so they don’t have to travel from Frankston to the city every day and I think that way of life will stay in place for a while. “
It’s a similar story in the west of the city, with buyers from Essendon and the surrounding area moving to the Sunbury area for larger family homes, said Aaron Hill, auctioneer Ray White Sunbury.
“A lot of homes over $ 1 million took two to three months to sell,” he said. “Now they are selling like all the other houses. “
Sunbury sellers Matt and Kirrily Bevan have said they are hoping for a good result from the sale of their family home and are planning to move to Queensland for a lifestyle change after COVID. Prices at Sunbury have increased 11.6% in one year.
They know that moving now means selling in a growing market and buying back in one that is also experiencing strong growth.
“We’re not going to cash in on the high market because we are also buying on a high market,” Bevan said. “It’s more of a lifestyle change.
“We should get a good result, we hope.
11 Roseberry Avenue, Sunbury VIC 3429
Urban planning expert Mike Day said the popularity of outer suburbs in the future will depend on their characteristics similar to indoor neighborhoods, such as transport links, mixed-use amenities, and compact, pedestrianized layout.
Some of the outer suburbs that have been in demand this year have well-established villages catering to the daily needs of residents, unlike some of the growing areas, he said.
“You need this compact urban form, you need to mix uses,” said Hatch partner Roberts Day for urban solutions.