VIC Suburb snapshot: Essendon

Written by in Investment on April 8, 2013

The recent release of the Real Estate Institute of Victoria (REIV) December quarter data has revealed strong growth across many areas of Melbourne, a positive sign that demand for property is strengthening and buyer confidence is improving.

In the December quarter 2012, Melbourne’s median house price increased by 7.8 per cent to $555,000, from $515,000 (revised) in the September quarter. The median price for units and apartments increased by 4.2 per cent to $456,000.

According to Enzo Raimondo, CEO of the REIV, “Strengthening demand has resulted from a combination of improved Victorian consumer confidence, four interest rate cuts and the seasonal increase in activity in the December quarter.”

Essendon shines bright

One area in particular that stood out as a top performer was the north-west suburb of Essendon which is located in the City of Mooney Valley, along with the suburbs of Strathmore, Ascot Vale and Avondale Heights.  Essendon is located only 7-10 kilometers from the CBD, and is easily accessible via the Tullamarine Freeway and Citylink, both which allow for faster transit.  In addition, Essendon is easily accessed via public transport.  With an abundance of shops, cafes, schools and parks it is no wonder that all segments of the market are eyeing off this property hot spot.

In the December quarter 2012, the median house price for the the Moonee Valley municipality was $734,000, and the median unit price was $476,000.  Both of these figures are above the Melbourne median.

Based upon results reported to the REIV until the 5th of March, there were 153 auctions results recorded for the municipality with a clearance rate of 67%, with an additional 108 Private Sales reported.

Essendon is represented in both the upper and lower ends of the market for the municipality with 30 sales transactions recorded so far with 17 auction related sales and 13 Private Sale results recorded with a current auction clearance rate of 65%.

The median prices for Essendon calculated by the REIV for the December Quarter were $945,500 for houses and $460,000 for units which are respectively higher and lower than the municipality wide medians for this time frame.

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