New suburbs join Melbourne's real estate million-dollar club

 "A lot of the fringe suburbs have entered the million-dollar club because people have been priced out of those suburbs that have done well in the prestige area."

Domain Group data shows wealthy buyers have switched their focus from traditional blue-ribbon suburbs such as Toorak and Malvern to the inner north. 

 

Fitzroy was the top performer for house price growth in the past six months, jumping by 32 per cent to a new median of $1,135,000. It shows the suburb has been popular with buyers, though the scale of the increase could also reflect that the standard of properties sold in the suburb over the period were better than average.

 

Fitzroy North has also entered the million-dollar club following growth of 4.4 per cent.. 

 

Nelson Alexander sales director Arch Staver said the features that underpinned the two suburbs' popularity – handsome historic homes, proximity to the CBD and parklands – have always been there, but more buyers were now discovering the advantages.

 

He said young families were also now staying put in the inner city where they once moved to be near schools in the eastern suburbs. 

 

"They're renovating their houses as opposed to changing them over regularly," Mr Staver said. "Subsequently, the supply level of property is never all that high and that's where a great deal of the demand is."

 

He said a buyer armed with a budget of $1 million in Fitzroy and Fitzroy Northwould be looking at an unrenovated single-fronted terrace. 

 

South of the CBD, Port Melbourne is now rubbing shoulders with upmarket neighbours Albert Park and South Melbourne. House prices in the suburb climbed by 3.6 per cent in the past six months. 

 

Biggin & Scott director David Lack attributed Port Melbourne's lure to the spread of demographics and variety of housing in the area, and the quality of amenities along Bay Street.

 

"You've got a mixture of houses that have had nothing done to them and houses that are have the full monty," said Mr Lack, who has seen renovation spendings of more than $700,000 on double-storey extensions in the Garden City precinct. 

 

There is also an emerging corridor of millionaires in the inner south, with Bentleigh and McKinnon making a debut on the rich list. 

 

Buxton's Simon Pintado said properties in the highly sought-after McKinnon Secondary College zone were in a "bit of a bubble", attracting a premium of 15-to-20 per cent. 

 

The above is an extract from: http://news.domain.com.au/domain/real-estate-news/new-suburbs-join-melbournes-real-estate-milliondollar-club-20150206-136924.html

 

4C Realty

Carolin He