Accrue Real Estate Reviews Melbourne’s Growth Suburbs

We’re all aware of doomsday predictions regarding the Australian property market. As real estate professionals in Melbourne’s property scene, Accrue Real Estate hears it on a daily basis.

And while we mightn’t have seen the unprecedented increases of previous years in a number of locations, the outlook is incredibly optimistic.

As Jeff Grochowski, Principal of Accrue Real Estate states “after experiencing significant growth for a number of years, there’s no doubt that the property market has cooled somewhat. Certainly prices have decreased overall but it’s a gentle decline we’re talking about. There’s no indication that the property market is going to, or will, collapse like doomsayers are predicting.”

An Optimistic Outlook for Melbourne Property Investment

A review of top performers across Melbourne’s property market – Accrue Real Estate’s area of local knowledge – certainly supports Mr Grochowski’s optimism. Parts of Melbourne are performing extraordinarily well.

This review looks at the performance of Melbourne’s growth suburbs using varying statistics from the Real Estate of Victoria, CoreLogic and realestate.com.au. Positive growth in property prices for both houses and units across the Melbourne property market is evidenced in the data.

Top Growth Suburbs across Melbourne by Median House and Unit Price over two quarters (REIV)

To begin with, the Real Estate Institute of Victoria demonstrates a positive trend occurring across Melbourne’s property sector for both houses and units over the last two recent quarters.

As the figures show, there has been a significant increase in both median house and unit prices across Melbourne, particularly in the inner and beach suburbs.

What is particularly evident is that price changes for units outperformed houses between the March and June quarters of 2018.

The “Top 7” suburbs for price increases in Melbourne units – that is, Sandringham, Carlton, Glen Huntly, St Kilda East, Abbotsford, Thornbury and South Yarra – outperformed the top suburb for house price increases (i.e. Brighton) over the two quarters.

Based on significant price increases for units in the Top 10 performing suburbs over the two quarters – from 46% to 12.90%– units appear to be rebounding or bucking trend. Median house price increases in the Top 10 growth suburbs across Melbourne ranged from 15.90% to 5.80% between the two quarters. Both figures lend support to the fact that in 2018 Melbourne property prices in the top performing suburbs are still, overall, on the rise.

A. Top 10 Growth Suburbs by Median House Price in Melbourne

 Taken from: https://reiv.com.au/property-data/high-performers#growth 

B. Top 10 Growth Suburbs by Median Unit Prices in Melbourne

 Taken from: https://reiv.com.au/property-data/high-performers#growth 

Top 10 Annual Price Growth Suburbs by Median House Price across Victoria (12 months to April 2018) (CoreLogic and Realestate.com.au) 

Another set of data shows significant increases in house prices in Melbourne over the last 12 months to April 2018. While the first set of data looked at percentage changes between the two most recent quarters, this data examines annual increases up to April 2018. Sourced from CoreLogic, analysed by realestate.com.au, this data was presented by news.com.au.

The data shows that, over the last year to April, house price growth was extremely strong in the outer commuter suburbs of Melbourne.

Top 10 Annual Growth by Median House Price across Victoria (12 months to April 2018)

 Taken from: https://www.news.com.au/finance/real-estate/melbourne-vic/melbournes-star-suburbs-rising-more-than-1000-a-day/news-story/79a776a12e9ea6552623ebab37cbd763

Compound Annual Percentage Growth by Median House & Unit Price across Accrue Real Estate Locations (as of 13 August 2018) – Realestate.com.au

As experts in the Melbourne property market, Accrue Real Estate has a presence across a range of inner Melbourne and suburban locations. As Jeff Grochowski, Principal of Accrue Real Estate, explains “Accrue works with clients to source and introduce only the right properties for clients. These means finding suitable properties that align with the client’s specific financial goals, as opposed to undertaking a hard sell and pushing them to purchase the first property that comes along.”

Accrue Real Estate property locations have experienced steady increases overall over the last 12 months, as the statistics from realestate.com.au reveals. While methodologies differ across sources, the figures presented by realestate.com.au are compound annual growth rates in median house and unit prices. This figure is arrived at by comparing the median price of property sales in the preceding 12 months to the median price of properties sold in the same 12 month period five years ago. Data was current as of 13 August 2018.

In line with the general trend across some areas of Australia where units have underperformed, house prices in Accrue locations across Melbournehave experienced higher growth rates than units. Top performing Melbourne growth suburbs in Accrue locations for house prices include Niddrie, Brunswick and Werribee. These include increases of 13.1%, 11.4% and 11.3% respectively. For Accrue locations, the Top 3 suburbs for growth increases for unit prices include Bonbeach, Reservoir and Altona – at 8.8%, 8.5% and 8.4% respectively. 

Compound Annual Percentage Growth by Median House & Unit Price: Accrue Suburb Locations

(Methodology / data from realestate.com.au) 

This review provided a picture of property growth in Melbourne's suburbs over recent time periods. While there might have been a gentle decline in prices from the significant growth period of the past, the figures show that overall prices remain strong in both inner and outer Melbourne suburbs.

Between the last two quarters of this year, prices have increased, particularly for units across Melbourne and specifically within the inner and beach suburbs. Data also revealed that some of the outer commuter suburbs of Melbourne experienced extraordinary price increases.

Realestate.com.au data also showed that there has been growth in all Accrue Real Estate locations across Melbourne, both amongst house and unit prices. This is particularly satisfying as Accrue works with clients to select the right property for clients above all else.

And finally, the only conclusion left to draw is that Melbourne continues to be a great market for the property investor.

References:

Carbines, S. (2018, April 16). Melbourne’s star suburbs rising more than $1000 a day, URL:

https://www.news.com.au/finance/real-estate/melbourne-vic/melbournes-star-suburbs-rising-more-than-1000-a-day/news-story/79a776a12e9ea6552623ebab37cbd763

https://www.corelogic.com.au/

https://www.realestate.com.au/invest

REIV (2018). High Performers. URL: https://reiv.com.au/property-data/high-performers#growth          

Written by Accrue Real Estate

Last Updated: 14 March 2022

Published: 23 August 2018