Melbourne’s Top Performing Suburbs

How does five-year capital growth of between 78% and 94% sound? Read on for a rundown of the top 10 best performing suburbs for capital growth in Melbourne over the past five years.

The Real Estate Institute of Victoria (REIV) has released its median price data from 2011, and has provided an interesting insight into the markets that experienced the greatest median house price growth between 2006 and 2011.

Top 10 growth suburbs (5-year, houses):

Suburb
2011 Median
2006 Median
5-year change

Ivanhoe
$1,152,500
$595,000
94%

Albert Park
$1,340,000
$717,500
87%

Sunshine North
$435,000
$234,000
86%

Braybrook
$428,500
$230,500
86%

St Albans
$386,000
$210,000
84%

Sunshine
$430,000
$238,000
81%

Brunswick East
$776,000
$430,750
80%

Doveton
$329,500
$183,000
80%

Airport West
$565,000
$315,000
79%

Springvale
$472,000
$265,000
78%

Source: REIV. Only suburbs with 50 or more sales in 2011 are included.

Overall, houses in the metropolitan region were found to have shown median price growth of 46% between 2006 and 2011, while units and apartments recorded a similar figure of 45%. Houses in regional Victoria saw less impressive five-year median price growth of 27% according to the REIV.

Recent history has not been so kind to the Melbourne market, judging by the REIV’s statistics. Metropolitan houses saw a median price drop of -1.8% during 2011. The REIV does point out, however, that this drop needs to be seen in the context of the 18% rise seen during 2010.

Regional houses, however, outperformed their metropolitan counterparts, recording median price growth of 3.6%, according to the REIV.

2011
2010 to 2011
2010
2006 to 2011
2006

Metro (Houses)
$540,383
-1.80%
$550,000
46%
$370,000

Metro (Unit and Apartments)
$456,000
-1.30%
$462,000
45%
$315,000

Regional Victoria (Houses)
$315,000
3.60%
$304,000
27%
$248,000

Source: REIV

Despite the -1.8% median house price drop recorded in metropolitan Melbourne, there were several suburbs that recorded impressive growth figures last year. Derrimut (15%) and Healesville (13%) were the standout performers, according to REIV data.

Top 10 growth suburbs (1-year, houses):

Suburb
2011 Median
2010 Median
1-year change

Derrimut
$460,000
$400,000
15%

Healesville
$421,000
$372,500
13%

Fitzroy
$912,500
$835,000
9%

Taylors Lakes
$510,000
$470,000
9%

Melton
$293,500
$271,000
8%

Cairnlea
$519,750
$482,000
8%

Toorak
$2,567,500
$2,385,000
8%

Cockatoo
$360,000
$335,000
8%

Chirnside Park
$483,500
$450,500
7%

Ivanhoe
$1,152,500
$1,075,000
7%Bottom of Form

Source: REIV. Only suburbs with 50 or more sales in 2011 are included.

For more information on this article, or to view properties currently available, please contact your Prestige Property Consultant on 1300 732 595 or email enquiries@prestigegrp.com.au

Source: Your Investment Property: "Melbourne Hotspots Reveiled"