It’s clear that the steady increase in house prices over the last few years has resulted in a rising number of million dollar suburbs in Melbourne. The ever growing list, now available on the Real Estate Institute of Victoria’s website, contains the usual high end suburbs such as Toorak, Canterbury and Brighton. However, we are seeing more and more new kids on the block, mainly from Melbourne’s outer fringe suburbs that are weighing into the million dollar game.
Million dollar suburbs
The REIV’s list of million dollar suburbs currently contains 39 suburbs with median house prices over 1 million dollars. The list generally is comprised of Melbourne’s eastern suburbs, however an emerging number of million dollar suburbs in Melbourne’s outer fringe is apparent, including the likes of Kangaroo Ground, Warrandyte South and Red Hill South.
Melbourne’s million dollar suburbs at a glance
Growth in the city’s fringe
Growth in Melbourne’s outer suburb house prices has come about for several reasons. These suburbs sit on the edge of the metropolitan area, which means that proximity to the CBD does not play a huge part in underpinning their high prices.
Suburbs on the edge of the city tend to share quiet bush settings and low density. The dwellings are larger, with 4 to 5 bedroom houses being the average, clearly to take advantage of the other common factor, larger blocks. These two factors will contribute to the higher values as large blocks – in Kangaroo Ground for instance the average size is 14 acres – and also provide one of the attractions for living that distance from the CBD.
In addition, the residents are on average less diverse than the metropolitan area and older with a median age of at least 40. The higher average age underpins very high levels of home ownership at between 41 to 52 per cent compared to the city wide average of 33 per cent.
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