The most in-demand suburbs for property buyers in Victoria have been revealed by PropTrack.
In these suburbs the number of homes up for sale is low and hundreds of buyers are vying for available properties.
New listings of properties for sale were down 11.1 per cent, year on year, in February, according to PropTrack, with nearly all capitals seeing fewer new listings compared to last year.
By the way... none of the suburbs of work we would consider investment-grade locations, however, the list makes interesting reading
Kangaroo Ground, located 26km northeast of the CBD, tops the list with an astounding 484 potential buyers competing for each listed property.
According to Barry Plant Eltham agent Nathan Foley, Kangaroo Ground has seen a surge in interest from inner Melbourne buyers who are looking for a lifestyle property after being priced out of areas like the Mornington Peninsula.
He said:
"And with this being a gateway to the Yarra Valley, and with the train line to Hurstbridge being upgraded, it’s driving a lot of people from the inner east and north.
If you’re looking at Mornington Peninsula suburbs like Merricks or Red Hill you can’t get anything on a decent amount of land for less than $5m, but in Kangaroo Ground you can buy something really nice at about $3m."
He added there was a lack of housing stock in the town, which kept it in high demand.
What's attracting buyers?
PropTrack economist Anne Flaherty said for houses, the suburbs seeing the highest number of potential buyers per listing had a few things in common.
She explained:
“They’re typically in leafy green outer areas or along the Mornington Peninsula.
What’s clear is that the increased demand for lifestyle suburbs that emerged during the pandemic remains prevalent. Unsurprisingly, buyers looking for units are searching closer in."
However, she said the suburbs seeing the highest ratio of property seekers to sellers tended to be in the city’s middle ring and spread across Greater Melbourne.
She explained further:
“In suburbs where buyer demand remains high, relative to the supply of properties for sale, we are seeing more price resilience despite the impact from rising interest rates."
Victoria's most in-demand suburbs
Top 10 most in-demand suburbs for houses
Rank, suburb, and potential buyers per listing:
1. Kangaroo Ground, 484
2. Gruyere, 376
3. Belgrave South, 363
4. Warrandyte South, 314
5. Sassafras, 296
6. Merricks North, 288
7. Red Hill South, 269
8. Arthurs Seat, 256
9. East Melbourne, 251
10. Red Hill, 250
Top 10 most in-demand suburbs for units
Rank, suburb, and potential buyers per listing:
1. Croydon South, 184
2. Seaholme, 177
3. Albert Park, 168
4. Caulfield East, 150
5. Huntingdale, 146
6. Chelsea Heights, 145
7. Briar Hill, 143
8. Essendon West, 137
9. Aspendale Gardens, 135
10. Gardenvale, 134
