While inner Sydney has experienced a mixed bag of either significant growth in median house prices or more restrained growth this year, Melbourne’s inner-city suburbs have seen a more consistent continued growth in 2017 as the supply of houses has remained smaller than demand within the market.
Looking at view.com.au’s November figures for median sale prices and sale volumes across Melbourne, here are 10 inner city suburbs in Melbourne that have seen considerable growth over both 2017 and the past three years. And yes, it is in alphabetical order.
Abbotsford has attracted significant interest from buyers over both 2017 and the past three years. A surge in unit dwelling completions has had its effect on house prices, while Abbotsford’s proximity to the city, public transport, Victoria Street in Richmond and the lush greenery of the Yarra Boulevard continue to make this one of hte most popular suburbs in Melbourne this year.
Median sale prices increased 18.9 per cent in 2017 to reach $1.35m, which is a relatively mild increase compared to the past three years, which saw median sale prices increase by 70.1 per cent. Supply and demand is definitely at the heart of this rise, as the sale volume decreased by 46.2 per cent over three years.
The famous and historical suburb of Albert Park may not have seen the same growth as some of its neighbours north of the river, but it has continued to experience what would still be considered considerable growth in median sale prices.
In 2017 Albert Park experienced a 12.2 per cent increase in the median sale price of houses, reaching $2.02m, which was a considerable chunk of the 25.9 per cent growth in median sale prices over a three year period. A decrease of 34.1 per cent in the sale volume of houses over this three year period would certainly indicate that demand has driven this growth.
Situated between Ivanhoe and Northcote, Alphington has proven to be a favourite for buyers looking for inner city living without feeling like they are about to be run over by a tram.
The median sale price of houses in Alphington increased by 13.1 per cent in 2017 to reach $1.68m, which is a slight decrease compared to the past three years where the inner north-eastern suburb saw a 40.9 per cent increase in the median sale price over three years. Again, a 42.9 per cent decrease in the sale volume of properties in 2017 certainly contributed to this rise.
Ascot Vale continues to symbolise the changing market in Melbourne and how much competition their is to buy a home within the inner northwestern and western suburbs. Its proximity to the city, public transport, schools and parkland along the Maribyrnong River make it an ideal location for families and first home buyers.
Ascot Vale saw a 45.6 per cent decrease in sale volume over three years, which helped drive up median sale prices for houses by 11.3 per cent in 2017 to $1.13m and a 42.8 per cent increase over three years, when median sale prices werew at $795,000.
The historical suburb of Carlton continues to lead the way in house price growth in Melbourne, due to its proximity to the city, access to public transport and restaurants, park lank and the treasure trove of Victorian terraces that line its streets.
A 60.5 per cent drop in the sale volume of houses continues to indicate both a growth in demand and homeowners awareness of this, driving up median sale prices for houses by 30.7 per cent in 2017 to $1.5m and 102 per cent over three years.
Clifton Hill feels like Carlton but without the noise. Access to public transport, including buses, trams and trains, all of which converge at the end of Hoddle Street, continue to make this a destination point for investors and home buyers.
Clifton Hill saw a 16.8 per cent increase in median sale prices for houses in 2017, reaching $1.42m. While a softening of the market over 2017 was seen in many areas, Clifton Hill’s 2017 rise in median house prices accounted for 31 per cent of growth over three years. Over this three year period, median sale prices for homes increased 53.9 per cent.
The innercity suburb of Collingwood has a high number of high density dwellings, and this continues to increase. Because of this, demand for houses continues to climb, while sale volume over three years to November 2017 decreased 43.8 per cent. Restauraunts, pubs, bars, cafes, parkland, a 10 minute walk to the city and a growing startup culture continue to make this one of the most sought-after suburbs in Melbourne.
Collingwood saw a 25.8 per cent increase in median sale prices for houses over 2017, reaching $1.24m in November, while this figure was at 70.4 per cent over three years.
While Fitzroy has seen a softening over 2017 (with only a 5.2 per cent increase in median sale prices for houses), Fitzroy North continues to indicate the general trend for those suburbs immediately outside the innermost areas to see increasing demand.
Fitzroy North saw a median sale price for houses rise 20.4 per cent in 2017 to $1.48m, while over three years this increase was at 49.2 per cent. Contrary to the above suburbs, Fitzroy North also saw the sale volume of houses increase 10.6 per cent over 2017.
Just like Ascot Vale, Footscray continues to prove its position as an indication towards what to expect in Melbourne’s west. However, affordability still underpins this suburb, attracting large numbers of first home buyers.
The median sale price of houses in 2017 increased 22.8 per cent to $766, 250 and 52 per cent over three years. At the same time, the median sale price of units increased 7.9 per cent in 2017.
North Melbourne is the last on the list but has some of the most impressive figures of all. Access to the city, the Victorian Markets, public transport and an increasingly popular nightlight have seen the suburb’s median sale price for houses increase 21.4 per cent in 2017 to $1.19m, which is a softer rise compared to its 80.9 per cent increase over three years. With the sale volume for houses decreasing by 56.7 per cent over three years, there is little wonder why it has seen such a rise.