One in five Melbourne suburbs have million dollar price tag
Date: 29 Oct, 2015
Annette Ferry paid $13,000 for this house in Box Hill in the 1970s. It's expected to sell for about $1.7 million at auction next month. Photo: Eddie Jim
About one in five Melbourne suburbs now have a $1 million median house price, with a flurry of buying pushing 26 suburbs into the million dollar club.
Melbourne has now clocked its strongest annual growth rate since 2010, fuelling increased activity in the market.
There are now 82 suburbs on the property rich list, with Box Hill stealing the show after clawing its way to a median house price of $1.28 million.
This four-bedroom house at 36 Hedderwick Street in Essendon is asking for more than $1.6 million when it goes to auction on December 5. Photo: Supplied
A typical house in Box Hill is now more expensive than one in South Yarra, South Melbourne and Templestowe.
There is also an emerging corridor of millionaires in the west and north-west, with Williamstown, Essendon and Strathmore joining the once-exclusive club, as do Hughesdale, Balaclava and Carnegie in the inner south.
“One million dollars is now becoming a mid-price range in Melbourne,” Domain Group senior economist Andrew Wilson said.
“We’ve got 16 per cent growth in the Melbourne median over the past 12 months, and that’s just about a boom market.”
One property that has beaten the odds of a house doubling in value every decade is a Box Hill California bungalow, which Annette and Trevor Ferry bought for $13,000 in 1971.
If they achieve their asking price of about $1.7 million, the value of the three-bedroom Alexander Street home would have doubled every six years.
Ms Ferry said she had seen a new wave of gentrification in the suburb, with younger professionals moving in to start a family.
“They’re loving the area and not wanting to move out, so they’re actually improving the value of it by going up and renovating,” the family and youth worker said.
Listing agent Tim Heavyside of Fletchers Real Estate said house price growth in Box Hill was largely driven by land sales in the residential growth zone.
Old houses in the growth zone were being knocked down to make way for new apartments and townhouses, he said.
“If you are in the precinct, your home is elevated in price dramatically,” he said.
The price difference between a house in the zone and another a few doors down could differ by more than $500,000, he said.
Last weekend, six bidders fought for the keys to a three-bedroom house at12 Howard Street. Nestled in the plum spot, it fetched $2,036,000 under the hammer.
In the north-west, Essendon made the list with a median of $1.02 million.
Paul Filippone, of Barry Plant Essendon, said properties in the Mar Lodge estate, between McCracken and Hedderwick streets, generally held their values better than other parts of Essendon because they had single-dwelling covenants.
Houses in the estate were being demolished for new builds, he said, and a block of land alone would cost between $1.5 million and $1.6 million.
“Throw in the proximity of all the schools; Penleigh and Essendon Grammar School, Lowther Hall and other private schools, people feel it’s relatively safe to invest in the area.”