Melbourne’s 10KM middle ring property prices soar

Melbourne’s 10KM middle ring property prices soar

Melbourne’s 10KM middle ring property prices soar

Properties inside a ring around Melbourne CBD have had prices soaring up to 16 per cent in five years.  This might be the best gamble homebuyers could make in 2021.

The data from PRD Real Estate’s inaugural Major Market Update for the first half of 2021 shows homes 10km-20km from the CBD have experienced significant price growth of up to 16 per cent in five years, with a prediction of more growth going forward.

According to the report, properties in the said area have a median price of $840,000 today. This means owners who bought a standard home 5 years ago gained more than $115,000 value.

The report includes both the 2018 market correction and the effects of the coronavirus pandemic to the property market last year, both of which left significant hits to property sales.

Dr Diaswati Mardiasmo, author of the report, said that the prices have “gone completely bonkers” in Melbourne’s 10km-20km outer ring.

“In the past five years it’s grown 15.9 per cent and to be honest I think it can still be growing, especially with the way more people are working from home.”

However, in the same research, Dr Mardiasmo noted that houses within 5km-10km from Melbourne’s CBD had a lower median house price than they did in 2018.

Dr Mardiasmo is confident, based on the data gathered and calculated for the report, that the median house price is increasing. Yarraville, Brunswick, Hawthorn and St Kilda are among this 5km-10km band.

Nevertheless, Real Estate Buyers Agents Association of Australia president Cate Bakos said buyers will have difficulty finding homes within the area at 2018 prices.

For Ms Bakos, the next ring out was the better bet, noting that most buyers had added an extra bedroom to their requirements due to the pandemic. Inner-city units had been the hardest hit by COVID-19 in 2020, and so buyers can better try their luck in Melbourne CBD’s 10km outer ring.

Despite the negative status of the inner city in the report, Dr Mardiasmo believes prices could bounce back in the future. She noted that there is still capacity for growth due to the market’s resilience. She believes there is no reason why inner city unit prices can’t improve in the course of time.

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