Here are the Melbourne suburbs that have blossomed over the last 10 years

Melbourne has been the strongest performing capital city property market over the last year (+7.5%) as well as over the last decade (+7.2% growth per annum).

Of course this is the average price growth and some suburbs have performed much better than others.

Domain recently produced an insightful animation showing how many suburbs have blossomed into areas with million dollar medians  over the past decade:


Source: Domain

How things have changed over the last decade:view from st kilda melbourne victoria state city live boat bay lifestyle

In 2006, there were just five suburbs in Melbourne’s million dollar club:

  1. Toorak,
  2. East Melbourne,
  3. Canterbury,
  4. St Kilda West and
  5. Brighton.

Now there are 89!

Domain Group chief economist Dr. Andrew Wilson said the $1 million median was no longer a prestige market indicator and more of a mid-market, interest rate-sensitive price.

“If we’re looking at the prestige market benchmark, maybe we should be looking at a $2 million median,”

“It is quite remarkable the acceleration in the number of million dollar suburbs in the past few years. That’s not just price inflation, it is also the fact that price range is more amenable to a larger proportion of buyers.”

Dr Wilson said the number of areas with million dollar medians would continue to spread from central Melbourne into the western and northern suburbs taking up vast swaths of Melbourne’s east.

And almost half of them are relatively new entries to the list, having only joined the club’s ranks in the past two years.

Click a year to see which suburbs passed the $1 million threshold

The chart above shows how until 2014, the red areas on the map had not changed much. 

The suburbs formed a continuous band that extended down from Kew before tracking along Beach Road as far south as Beaumaris.

But in 2015, the surge of buyer activity around Box Hill, Glen Waverley and Mount Waverley propelled those areas over the million threshold.

Average property prices now sit on about $1.2 million in these suburbs, driven, demographer Bob Birrell says, by locals and an “Asian plutocratic class” competing for the best housing stock in the inner east.

Dr Birrell said the map showed “a major group of gainers and a major group of losers”, with the losers excluded from areas that have the best access to public transport and top public schools.

Some further thoughts:

Of course these figures don’t account for inflation, so once adjusted for inflation, 49 suburbs, not 89, would qualify under 2006’s equivalent $1 million threshold.

Clearly owning property – your own home and investment properties is the way to wealth in Australia.

But not every property is an investment grade property


If you’re looking for independent advice about property  no one can help you quite like the independent property investment strategists at Metropole.

Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.

Whether you are home buyer or a beginner or a seasonedproperty investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.

Please click here to organise a time for a chat. Or call us on 1300 20 30 30.

When you attend our offices in Melbourne, Sydney or Brisbane you will receive a free copy of my latest 2 x DVD program Building Wealth through Property Investment in the new Economy valued at $49.

Source: Domain –  Dashboard and interactive map by Craig Butt

Want more of this type of information?

Kate Forbes


Kate Forbes is a National Director Property Strategy at Metropole. She has 15 years of investment experience in financial markets in two continents, is qualified in multiple disciplines and is also a chartered financial analyst (CFA).

'Here are the Melbourne suburbs that have blossomed over the last 10 years' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.



Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...