Many investors and property experts have tipped suburbs in the north and west as the next areas for the boom but what about the east? Real estate agents working in the area are still seeing strong growth and high demand fuelled by a shortage of supply in the second-hand market. This demand is largely fuelled by Melbourne’s ever-expanding population, with approximately 100,000 more people looking for somewhere to live every year.
House Prices and Demand Up in the East
Asking prices in Melbourne’s inner east are up by 27 per cent over the last 12 months according to SQM Research. However, the whole area is in a boom as people search for affordable housing, with the middle and outer rings up by 14 per cent and 8 per cent respectively.
Popular suburbs for renting in the east include Canterbury, Camberwell, Hawthorn and Kew. Families who want to live in the private school belt are a key factor in driving the demand here, with around 20 private schools located in this market. Buyer demand around these traditionally million dollar suburbs is creating a ripple effect, driving demand and pushing up the median house price in neighbouring areas.
Eastern Suburbs With Highest Growth
In addition to these high-priced inner-eastern areas, suburbs in the outer east are now among some of the highest performers in terms of growth. Top performers in the east include:
- Forest Hill – 12.7%
- Doncaster East – 12.5%
- Doncaster – 12.3%
- Ringwood East – 12.1%
- Blackburn North – 12.4%
- Blackburn South – 12%
- Malvern – 11.8%
- Box Hill South – 11.3%
- Ringwood – 11.2%
- Wantirna South – 10.9%
Meanwhile, units are performing relatively similar to houses in the east, with the highest growth areas including:
- Nunawading – 9.9%
- Box Hill North – 9.5%
- Ringwood North – 9.8%
- Ringwood East – 9.4%
- Box Hill South – 9.1%
- Blackburn South – 8.9%
- Balwyn North – 8.9%
- Heathmont – 8.1%
High growth in the surrounding suburbs of Blackburn, Balwyn and Box Hill illustrate the ripple effect of demand in the private school belt.
Eastern Suburbs With Highest Yield
Eastern suburbs recording high rental yields for houses include:
- Bayswater – 2.8%
- Wantirna – 2.7%
- Ringwood – 2.6%
- Heathmont – 2.5%
- Vermont – 2.4%
- Oakleigh – 2.3%
- Doncaster East – 2.1%
- Donvale – 2.1%
- Doncaster – 2%
- Hawthorn East – 2%
Units are also recording high yields in many eastern suburbs, including:
- Box Hill – 4%
- Hawthorn – 3.8%
- Doncaster – 3.6%
- Wantirna – 3.5%
- Ringwood – 3.4%
- Doncaster East – 3.3%
- Camberwell – 3.3%
- Blackburn – 3.1%
Top Investment Tips For the Eastern Suburbs
Investors who snap up property in areas like Balwyn, Blackburn, Glen Iris and Malvern will likely find themselves in a good position moving forward. Outer suburbs like Mitcham, Ringwood and Wantirna are also set to continue performing well as our population continues to grow. Rather than hunting for bargains, investors should look for nice, tree-lined locations close to quality schools and shops while keeping an eye on town plans.
Please note: This information is of a general nature and doesn’t take into consideration individual investment objections if you are wanting to invest in property. You should seek independent advice and a real estate appraisal with an agent familiar with the area.
