The Real Estate Institute of Victoria (REIV) has recently released its ‘million dollar’ statistics for the 12 months leading up to May 2013. The number of suburbs in Melbourne where the median house price is over $1 million appears to be consistently growing, with a total of 42 suburbs with million dollar medians during this time.
The top ten
The most expensive suburb was East Melbourne, where the median was $2.6M. Deepdene was second on the list with a median of $2.5M and Toorak third at $2.2M. Toorak may have a median lower than that of East Melbourne and Deepdene, however it has a significantly higher volume of very high priced sales as well as the most expensive properties in the city.
Sales volume a key indicator
The list of million median suburbs is subject to a degree of volatility because some of the most exclusive suburbs have a very low turnover due to their small size. Deepdene for instance has only 846 occupied dwellings according to the census, whilst neighbouring Balwyn (which is also a million dollar suburb) has 4,889 occupied dwellings. Whilst this does not affect the sale prices or demand it is a statistical issue that is important to appreciate when reviewing the data.
North-eastern suburbs featuring more regularly
Million dollar sales have been a regular feature of the market for some time now in the inner eastern suburbs and over time there will be a gradual increase in the overall number. The north eastern suburbs is one area that is increasingly also seeing million dollar sales grow. In the list there is Eaglemont at $1.3M, Ivanhoe East at $1.27M, Ivanhoe at $1.02M and Alphington at $1.02M. These suburbs all have one locational feature in common; they have a frontage to the Yarra River.