Melbourne hotspots revealed

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How does five-year capital growth of between 78% and 94% sound? Read on for a rundown of the top 10 best performing suburbs for capital growth in Melbourne over the past five years.

The Real Estate Institute of Victoria (REIV) has released its median price data from 2011, and has provided an interesting insight into the markets that experienced the greatest median house price growth between 2006 and 2011.

Top 10 growth suburbs (5-year, houses):

 

Suburb

2011 Median

2006 Median

5-year change

 Ivanhoe

$1,152,500

$595,000

94%

 Albert Park

$1,340,000

$717,500

87%

 Sunshine North

$435,000

$234,000

86%

 Braybrook

$428,500

$230,500

86%

 St Albans

$386,000

$210,000

84%

 Sunshine

$430,000

$238,000

81%

 Brunswick East

$776,000

$430,750

80%

 Doveton

$329,500

$183,000

80%

 Airport West

$565,000

$315,000

79%

 Springvale

$472,000

$265,000

78%

Source: REIV. Only suburbs with 50 or more sales in 2011 are included.

Overall, houses in the metropolitan region were found to have shown median price growth of 46% between 2006 and 2011, while units and apartments recorded a similar figure of 45%. Houses in regional Victoria saw less impressive five-year median price growth of 27% according to the REIV.

Recent history has not been so kind to the Melbourne market, judging by the REIV’s statistics. Metropolitan houses saw a median price drop of -1.8% during 2011. The REIV does point out, however, that this drop needs to be seen in the context of the 18% rise seen during 2010.

Regional houses, however, outperformed their metropolitan counterparts, recording median price growth of 3.6%, according to the REIV.

 

 

2011

2010 to 2011

2010

2006 to 2011

2006

Metro (Houses)

$540,383

-1.80%

$550,000

46%

$370,000

Metro (Unit and Apartments)

$456,000

-1.30%

$462,000

45%

$315,000

Regional Victoria (Houses)

$315,000

3.60%

$304,000

27%

$248,000

Source: REIV

Despite the -1.8% median house price drop recorded in metropolitan Melbourne, there were several suburbs that recorded impressive growth figures last year. Derrimut (15%) and Healesville (13%) were the standout performers, according to REIV data.

Top 10 growth suburbs (1-year, houses):

 

Suburb

2011 Median

2010 Median

1-year change

 Derrimut

$460,000

$400,000

15%

 Healesville

$421,000

$372,500

13%

 Fitzroy

$912,500

$835,000

9%

 Taylors Lakes

$510,000

$470,000

9%

 Melton

$293,500

$271,000

8%

 Cairnlea

$519,750

$482,000

8%

 Toorak

$2,567,500

$2,385,000

8%

 Cockatoo

$360,000

$335,000

8%

 Chirnside Park

$483,500

$450,500

7%

 Ivanhoe

$1,152,500

$1,075,000

7%Bottom of Form

Source: REIV. Only suburbs with 50 or more sales in 2011 are included.

What do you think of the Melbourne market? Have your say on our property investment forum.

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