Over 2017, Melbourne dwelling values increased 8.9 per cent, with house values rising 9.1 per cent and unit values up 8.4 per cent. While some inner-city suburbs of Melbourne have seen a plateau and even decline in dwelling values, clearance rates have remained above 70 per cent in 2018, with the number of Sales & Auction results also remaining steady in what is traditionally still a quiet period of the market.
Where the market goes from here is yet to be determined, so let’s take a look back at some of the highlights seen last year in Melbourne…
The year that records tumbled
There were some epic sales at the top end of the market in 2017, including the unforgettable $40 million sale of 18 St Georges Road, in exclusive Toorak to a mysterious Chinese buyer keen on privacy. Other notable sales included the $17 million paid for 53-55 Hopetoun Road, Toorak, and the sale of 16 Harcourt Street in leafy Hawthorn for $16 million in October.
A penthouse on Level 84 of the Eureka Tower in Southbank fetched $15 million, while actress Madeleine West and her husband, chef Shannon Bennett, moved their six children from South Yarra to a new home in Lansell Road, Toorak for the princely sum of $16 million.
Epic price growth in 2017 saw 44 new suburbs join the million-dollar club across the city. The suburb of Research, in the leafy north-east, enjoyed growth of 46.2 percent, with houses now fetching a median of $1.38 million. Nearby in North Warrandyte, homeowners watched their properties soar in value, up 55.1 per cent to $1.29 million.
On the other side of town, the median price of houses in Essendon North increased from $868,500 to $1.24 million, while in Brunswick a home will now set you back $1.25 million, up 28.2 per cent in 12 months.
Some of the suburbs which recorded the biggest jump in property prices last year were in locations you may not expect. For example, units in Heatherton grew an astonishing 71 per cent to $547,500, while the median price of Gladstone Park units soared from $195,000 to $516,000 – up a staggering 164.6 per cent! Houses in West Melbourne are now commanding upwards of $1.5 million, an increase of 69 per cent from the previous year, and in Williamstown, the new $1.56 million median is the result of an 85.6 percent gain since 2016.
No shortage of willing bidders
According to the REIV, auctions are increasingly becoming the preferred method of sale in Melbourne, with the number of auctions held in outer-ring suburbs up 24 per cent since 2016. Thanks to the State Government’s new stamp duty concessions, affordable properties in the western suburbs topped the lists for auction volume in 2017, with Melton South, Hoppers Crossing and Wyndham Vale joining Werribee and Melton West in the top 5.
The auctioneers were just as busy in the inner suburbs: in Hawthorn, 49 Lisson Grove fetched $7.65 million at auction in March, while in Balwyn, 9 Knutsford Street sold for $8.36 million went it went under the hammer in June, smashing the reserve by more than $900,000. Clearance rates were strong across the city, with Croydon North recording 96.3 per cent, and Notting Hill 95 per cent, in the 12 months to September.