Hidden Gems Revealed: Melbourne Suburbs That Skyrocketed in Just Five Years
- Posted By Ndl 1 Realty
Supercharged by the COVID price cycle, a wide range of Melbourne suburbs experience a booming surge over the past five years, witnessing remarkable property price growth in both affluent and affordable neighbourhoods.
Alphington, nestled in the verdant northeast of the city, witnessed a remarkable surge in its median house price over the five-year period ending in March, skyrocketing by an impressive 65.2 per cent to reach $1,975,000.
The suburb's growth is closely followed by Patterson Lakes, located in the southeastern growth corridor, which saw a remarkable increase of 50.3 per cent, reaching $1,345,000.
Other suburbs that witnessed significant growth include the more affordable Lyndhurst with a rise of 46.8 per cent, the bayside area of Elwood with 44.2 per cent, and the more distant Frankston South with 43.5 per cent growth.
When it comes to unit medians, Brighton takes the lead with a surge of 54.6 per cent, followed by Balwyn with 44.8 per cent, and Carrum Downs with 35.7 per cent. It's important to note that the analysis excludes tree-change locations included within greater Melbourne's statistical count.
Dr Nicola Powell, Domain's chief of research and economics, attributes the massive growth in these suburbs to the exodus of people from the inner city during the pandemic and lockdown periods. The data captures the pre-COVID period and the entire COVID price cycle, revealing Melbourne's significant demographic shift compared to other Australian cities. Despite Melbourne experiencing the weakest overall upswing in house prices among capital cities, certain outer suburbs experienced a notable boom.
Former resident Michael McInnes, who resided in Alphington for 22 years, credits the suburb's growth to its ongoing gentrification. He notes the rising property prices and the desirability of the area, often referred to as a "tightly held spot." Alphington's allure lies in its proximity to amenities, reasonable public transport, and a comfortable living environment.
Real estate agents also highlight the growth potential in other suburbs. Nelson Alexander agent Tom Breen compares Alphington to northside Kew, offering a family-friendly atmosphere and excellent access to private schools. Justin Maher, director at Asset Property Sales, emphasizes the hidden potential of Patterson Lakes, noting its undervaluation and desirability once people become aware of its attributes.
Elwood's strong performance is attributed to gradual gentrification and an increase in high-end renovations and developments. Julian Cannata, head of sales at Belle Property St Kilda, mentions the suburb's unique characteristics, serving as a hybrid between St Kilda and Brighton. Elwood offers a balance of proximity to St Kilda's vibrant scene and the privacy of suburban living.
These booming suburbs illustrate the significant growth potential in Melbourne's diverse real estate market, fueled by the super-charged COVID price cycle and shifting housing preferences.