If you’re looking for property investment opportunities beyond the inner city, the eastern suburbs are the ideal place to explore. The REIV identified Melbourne’s eastern and south-eastern suburbs as having the strongest price growth over the past ten years.
After the summer holiday slowdown, Melbourne’s 2018 auction market has kicked into gear with Blackburn recording three seven figure sales. Other top performers include Box Hill, Blackburn South and Doncaster East, the latter of which is coming off the back of achieving the highest number of house sales in Whitehorse and Manningham in 2017 with 225 reported sales.
The latest figures indicate that while price growth may be slowing down, demand is still strong throughout the east. This may partially be due to the abolishment of stamp duty for first home buyers for purchases under $600,000 and concessions for purchases over $750,000, encouraging a higher level of participation in the housing market.
Latest Figures From the East
Here are the latest figures for all houses in the top performing eastern suburbs according to realestate.com.au, using data from the previous 12 month period up until 14 May 2018:
|Annual Growth||Median Price||Median Rent||Rental Yield||Rental Demand|
Focus on Local Demographics
Remember that the eastern suburbs market produce varied results, with a diverse range of people looking in the region for different reasons. It’s essential to understand local market behaviours before making any decisions based on wider performance.
Residents range from affluent families looking to move near the private school belt in Blackburn and Camberwell to working-class families and migrants looking for affordable, well-positioned properties with access to high-quality amenities close to the city as well as in outer eastern suburbs like Ringwood, Doncaster and Wantirna.
What Kind of Properties are Selling?
There’s still gold throughout the leafy eastern suburbs, but what kind of property should you look for? Keep an eye on the huge amount of real estate data available online, find out what kind of demographics are attracted to the area, what property features are appealing to them, whether any infrastructure projects are planned or in progress and what kind of amenities are in certain neighbourhoods that draw people there.
In the inner east, quality public and private schools are a major drawcard for families, as are single-fronted Victorian homes for retired, or soon to be retired people. You can also find large blocks from the 50’s and 60’s with small homes on them that offer solid opportunities for price growth and development opportunities down the line. Some experts are also saying the humble Californian bungalow, prolific in Glen Iris and throughout Stonnington may be the next big real estate winner for 2018.