One-Third of Melbourne's Suburbs Now Have Median House Price of $1 million

One in three Melbourne suburbs now has a median house price of at least $1 million according to new data from the Real Estate Institute of Victoria.

In the year to 30 September, 154 Melbourne suburbs recorded a median house price of $1 million or higher from a total of 402 suburbs. 

Ninety per cent of suburbs within 10 kilometres of the CBD have a million-dollar median house price, while almost 50 per cent of suburbs in the middle ring are also in the million-dollar club. 

Over the past year, 44 suburbs have joined the million-dollar list including Mordialloc ($1.14m), Flemington ($1.1m), Kingsville ($1.05m) and Coburg ($1m). 

REIV president Richard Simpson said the Melbourne property market had boomed in the past decade, growing from just 17 million-dollar suburbs in September 2007.

“The city’s property market has seen exceptional growth over the past decade with demand for housing being driven by high levels of interstate and overseas migration.”

“Proximity to the city has always been a key consideration for buyers; however, strong price growth in recent years has seen the premium market expand well beyond the inner city suburbs.” 

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“Gentrification has also seen once unattractive inner city suburbs grow in stature, particularly in the city’s north with Brunswick, Fitzroy and Collingwood all commanding a median house price of at least $1 million.”

Other top performing suburbs over the past decade include Clayton, Box Hill, Blackburn South and Doncaster East.

In the city, OSK Property has reported strong sales at its Southbank Melbourne Square development with total sales of $341 million following the development’s first stage launch last month.

“The first weekend of sales saw a high-volume of purchases and luxury buyers which resulted in a number of sales of penthouses and apartments in the upper levels.

Of the $46 million in deals, 12 were above $1 million and three above $3 million,” CBRE managing director of residential projects Victoria Andrew Leoncelli said.