Home prices in 20 Melbourne suburbs are expected to rebound in 2025, thanks to the positive impact of low interest rates on homebuyer confidence. While timing the market is not recommended, those who are ready to make a move now could potentially benefit from future gains in suburbs like Mentone, South Yarra, Sunshine, and Craigieburn. According to real estate researchers at Suburb Data, Kalkallo in Melbourne’s outer north is also showing promising signs for buyers interested in houses.
Suburb Data analyzed various metrics such as property demand, supply, online engagement, time to sell, auction clearance rates, and listing volumes to determine which suburbs were “bottoming out” and experiencing a slowdown in price falls. The research found that units, including townhouses and apartments, were dominating the market in Melbourne.
Some of the Melbourne suburbs with high demand-to-supply ratios for units include Mentone, South Yarra, Sunshine, Forest Hill, Craigieburn, Altona, Richmond, Newport, and Laverton. Median unit prices in these suburbs range from $404,000 in Craigieburn to $740,000 in Forest Hill. It’s worth noting that South Yarra and Richmond have higher median prices for three-bedroom units, with medians of $1.38 million and $1.1895 million, respectively.
According to Suburb Data analyst Jeremy Sheppard, these suburbs represent a safer bet in Melbourne’s falling housing market. While they may not experience immediate growth, the increasing demand and slowing price declines suggest that the market conditions are stabilizing.
Buyers’ advocate Emily Wallace recommends looking for units with outdoor areas, a second toilet if there’s only one bathroom, and a hallway that provides a more house-like feel. She also suggests considering apartments in boutique blocks rather than larger complexes.
Greg Brydon from Ray White – The Bayside Group highlights the popularity of Mentone’s units and townhouses among first-home buyers and downsizers. The suburb’s well-regarded schools and amenities, such as the beach, train station, and Southland shopping center, make it an attractive option. Brydon expects an average annual growth rate of 7 to 10 percent in Mentone going forward.
Other Melbourne suburbs poised for a comeback include Richmond, Heidelberg Heights, Glen Iris, Lilydale, Port Melbourne, Newport, Laverton, and Kalkallo. These suburbs offer a range of median prices for units and houses.
Overall, the Melbourne property market is showing signs of recovery, with certain suburbs presenting opportunities for buyers and investors. It’s important to stay informed about market trends and seek professional advice when making real estate decisions.
1 Comment
I’ve always been curious about Melbourne’s real estate market. This post gave me some great insights into the potential growth of different suburbs. I can’t wait to explore these areas myself and see if the predictions hold true!
I completely agree with this analysis! Melbourne has so much potential for price growth, and it’s exciting to see which suburbs are poised for unprecedented growth. Definitely bookmarking this list for future reference.
While I understand the potential for price growth in these suburbs, I’m also cautious about the impact it could have on housing affordability. How can we ensure that these increases in prices don’t make it even harder for people to find affordable housing in Melbourne?
This post provides amazing value for anyone looking to invest in Melbourne’s real estate market. The detailed analysis of each suburb’s growth factors is incredibly helpful. Are there any suburbs that stand out as having a particularly impressive combination of growth factors?
I’ve been considering investing in Melbourne’s property market, and this post couldn’t have come at a better time. The insights and predictions shared here will certainly help me make informed decisions. Thank you for sharing your expertise!
As a local resident, I can attest to the growth potential of these suburbs. The development and infrastructure projects in some of these areas make them perfect for long-term investment. I’m excited to see how the prices will evolve in the coming years.
Great post! I found it interesting to learn more about the factors that contribute to price growth in Melbourne. Between the proximity to amenities, transport links, and lifestyle offerings, it seems like these suburbs have a lot going for them.
I agree that these suburbs have great potential, but I’m also curious about the potential risks involved in investing in them. Are there any red flags or external factors that investors should be aware of before diving in?
This is a fantastic resource for people who are considering a move to Melbourne. Knowing which suburbs are likely to experience significant price growth can help individuals and families make informed decisions about where to live and invest.
I appreciate how this post not only highlights areas with potential for price growth, but also explains the underlying factors driving that growth. It helps readers have a clearer understanding of the real estate market in Melbourne.