The Rise Of The Million Dollar City Fringe
The REIV maintains a listing of the most expensive suburbs in Melbourne on its website. This list is updated every month and reflects sales over the preceding 12 months.
The list of 39 suburbs with median house prices over 1 million dollars contain many of the suburbs that would typically be expected to appear, those in the inner east, inner south east and north east.
In addition to those are some new suburbs that share few characteristics with the likes of East Melbourne and Brighton. These are Kangaroo Ground, Warrandyte South and Red Hill South. Whilst they differ from the other 36 suburbs with million dollar medians they do have a number of factors in common.
Each is on the edge of the metropolitan area meaning that proximity to the CBD is not a factor underpinning their high prices. As suburbs on the edge of the city they share quiet bush settings and low density.
The dwellings are larger as well with 4 to 5 bedroom houses being the average, clearly to take advantage of the other common factor, larger blocks. These two factors will contribute to the higher values as large blocks – in Kangaroo Ground for instance the average size is 14 acres - and also provide one of the attractions for living that distance from the CBD.
The residents are on average less diverse than the metropolitan area and older with a median age of at least 40. The higher average age underpins very high levels of home ownership at between 41 to 52 per cent compared to the city wide average of 33 per cent.