Source: Melbourne Investor Feb/March 2007

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Top 5: Melbourne Suburbs

Source: Melbourne Investor Feb/March 2007

Top 5: Melbourne Suburbs

Dale BeaumontMelbourne’s Top 5 Suburbs
Though the honeymoon would appear to be over for Melbourne’s property market, there’s no cause for panic. Property values around Australia peaked 18 months to two years ago, but as Macquarie Bank points out, price drops in Melbourne have been more “moderate than in previous cycles”. Rod Cornish, the head of Macquarie Property Research, has remarked that, “the Melbourne residential market f undamentals are more solid than the price falls imply. Negative
commentar y, particularly about the oversupply of city apartments, has affected overall confi dence.”

As the market cools, it becomes imperative for investors to do even more research than usual. The hot spots are still out there; they are just harder to pinpoint. To get you started, here is a top fi ve list of Melbourne’s hottest investment suburbs.

  • Derrimut. According to PRD Nationwide’s Melbourne Hot Spots report released in Januar y, Melbourne’s northwestern suburbs are showing encouraging signs of growth. Derrimut showed an astounding median house price increase of 33.27% last year. Surrounding suburbs such as Doreen and Mickleham are also tipped for growth.
  • Middle Park. One of the most expensive suburbs in Melbourne, Middle Park is vaunted among property agents for consistently defying market downturns. Snare a good piece of the action around the St. Vincent’s Place/Richard Street precinct, and long-term returns are guaranteed. As The Age pointed out in September this year, Melbourne’s ‘cultural elite’ continue to push prices up throughout Middle Park.
  • Frankston. A wave of state government infrastructure planning in the Frankston area – mainly as part of the Melbourne 2030 Transit Cities program – is expected to drive population growth and property price increases over the next few years.
  • North Melbourne. Right on the doorstep of the CBD, North Melbourne is still thought to be under-priced relative to nearby suburbs like Carlton and Fitzroy. Attractive to young renters.
  • Blackburn. As The Age points out, “the completion of the Eastlink Freeway will throw the once-sleepy suburb into the big league.” The signs are already good; in July this year, a new price record was set in the suburb with a $2 million sale in Laurel Grove.