Melbourne’s cheapest, most expensive and highest growing suburbs revealed

According to REIV president Richard Simpson, this growth was due to auctions, with 25 auction-related records being broken over the last year.

“While price growth slowed in the December quarter due to increased supply and reduced investor activity, 2017 was a record-breaking year for Melbourne’s property market,” he said.

“High levels of interstate and overseas migration, new government initiatives for first home buyers and record low interest rates have contributed to significant double-digit price growth last year.”

The highest performing suburbs over the December quarter were at what REIV highlighted as the premium end of the market, which included Toorak, South Yarra, Surrey Hills and Canterbury.

“Demand for houses in the city’s most exclusive suburbs continues to outstrip supply, with increased competition delivering exceptional results for vendors in these areas,” said Mr Simpson.

Meanwhile, Melbourne’s affordable outer suburbs saw a 2.4 per cent rise in their medium house price to $666,500.

“Increased participation from owner-occupiers is driving values in the city’s outer suburbs, with these areas offering buyers the ideal combination of affordability and space,” Mr Simpson noted.

“Strong price growth over the past year has meant that houses within 20km of the CBD are almost out of reach for many first home buyers. These buyers are now looking for new entry points to the market, especially in established suburbs with infrastructure, amenities and services.”

Melbourne’s apartment market rebounded in December with the citywide median price increasing 1.2 per cent to $594,500.

Apartments also saw rises in median prices, with a rise of 1.2 per cent up to $594,000, and regional Victoria also saw a rise of 2.6 per cent for the quarter and 10 per cent compared to the same quarter last year up to $396,5000.

“Regional cities and towns within commuting distance of the CBD have certainly benefitted from strong price growth in Melbourne with a number of these areas now recording median house prices higher than those in the outer ring,” Mr Simpson concluded.