Million dollar Melbourne: city's premium market expands

Date: 5 Jun 17

The number of million dollar suburbs in Melbourne has quadrupled in the past five years, new data from the REIV shows.

In the first three months of the year, 120 Melbourne suburbs recorded a median house price of at least $1 million or higher – up from just 30 suburbs in March 2012.

Melbourne’s middle ring has been the main driver of this growth, with the number of million dollar suburbs climbing from eight in March 2012 to 53 this year – an increase of 563 per cent.

REIV President Joseph Walton said middle Melbourne was home to more million dollar suburbs than the inner city for the first time ever in the March quarter.

“Traditionally the premium end of the market has been confined to Melbourne’s inner suburbs; however the bridesmaid effect has really driven price growth within 20km of the city,” he said.

Inner Melbourne has also experienced a significant increase in million-dollar suburbs, up 174 per cent over the past five years to 52 million dollar suburbs in the first three months of 2017. 

“Around 90 per cent of all suburbs within 10km of the city now have a median house price of $1 million or higher, with these areas amongst the most sought after by buyers,” Mr Walton said.

“Proximity to the city is a key factor in price growth, with Melbourne’s inner suburbs often recording the highest median house prices due to their quality infrastructure, amenities and lifestyle.”

Mr Walton added that more than 20 per cent of all inner Melbourne suburbs now have a median house price of $2 million or higher. 

“Melbourne’s most exclusive suburbs are predominately located within the city’s inner ring with limited stock on market driving significant price growth at the premium end of the market. 

“These tightly held suburbs appeal to buyers for a number of reasons, particularly as they generally offer larger land blocks, luxury homes and leafy neighbourhoods.” 

In the March quarter, Melbourne’s outer ring was home to 15 million dollar suburbs, up from just three suburbs five years ago.  

Nine new suburbs entered the million-dollar club in the March quarter, including Coburg, Chelsea, Mount Martha and Viewbank.