The richest streets in Melbourne

Whether they have incredible views or are in close proximity to the CBD, the beach, or both, Melbourne has some of Australia’s most desirable streets and they attract some of the country’s wealthiest people.

However the Melbourne property market has not performed as strongly as some other capitals over the last year, but Melbourne’s property values are expected to play catch up over the next year or two.

Over the last 12 months dwelling prices have been basically stagnant, with values rising 10.6% since the onset of Covid in March 2020.. but they are still -4.4% below their previous peak in March 2022.

But while Melbourne’s property market struggles to keep up with price increases seen across the rest of the nation, the city’s ultra-wealthy property buyers continue to be unphased.

Instead of stressing about the cost-of-living crisis, they’re splashing eye-watering sums on property across Melbourne.

Here is a list of the top 10 Melbourne streets with jaw-dropping properties and sky-high property prices that some of Australia’s wealthiest people call home.

The 10 most expensive streets in Melbourne

If you’re wondering where the city's richest people are residing, here are the 10 richest streets in Melbourne based on the highest house sale prices for the 2023/24 financial year.

Source: Realestate.com.au

Toorak dominates

The inner-city suburb of Toorak, just 5km south-east of Melbourne’s CBD in the Stonnington local government area has been considered the city’s most affluent suburb for decades, so it’s unsurprising that it completely dominates Melbourne’s list.

But, why is the suburb so rich?

Toorak is home to a wealth of smart leafy streets lined with mega-mansions where many high-end corporate juggernauts, entrepreneurs, and business people own a property.

These people are flocking to the local amenities, high-end schools, low crime rates and spectacular city views.

The median sale price for the houses in Toorak over the last year is $5 million, and $950,000 for units.

Grant Avenue, Edzell Avenue, Maxwell Court, Buddle Drive, Yarradale Road, St George’s Road and Albany Road, frequently make the top of the list of Toorak’s most expensive streets, thanks to the significant number of $5 million+ luxury homes.

Whisky baron and businessman David Prior sold his five-bedroom house at 14 St Georges Rd in February 2024 for around $40m, but it was initially listed with $46-$50 million price hopes.

And the family of late billionaire David Hains sold his Toorak mansion for about the same price, despite a $40m-$45m price tag when the mansion was first listed.

The biggest deal recorded for the financial year was the $80m sale of a country estate owned by the family of the late Sir William Angliss, although this is located in Rowsley, around 50km from Melbourne’s CBD and therefore did not make the list for most expensive streets.

Local real estate agents have noted that demand and prices have soared for the top end of Melbourne’s market over the past year due to domestic and international buyers competing for premium properties at a time when there is a shortage of luxury homes.

What next for Melbourne property prices in 2024?

In Melbourne, over the last 12 months dwelling prices have been basically stagnant, while many other capital cities enjoyed double-digit capital growth.

Melbourne's property values have risen 10.6% since the onset of COVID-19 in March 2020, but they are still -4.4% below their previous peak in March 2022.

The fact that the Melbourne housing market has not performed as strongly as some other capitals over the last year creates a window of opportunity for strategic property investors as Melbourne property values have significant upside potential.

The average price of a Melbourne standalone house is the lowest it has been against its Sydney equivalent in around twenty years.

There is significant "inbuilt equity" in the undervalued Melbourne housing market at present, but not all Melbourne property is created equal - you need to know where to buy, what to buy and what suburb is ripe for investment.

The problem is, that property investors are increasingly abandoning the Melbourne market, driven away by stricter residential tenancy legislation and higher land taxes.

Recent reforms in tenancy laws have tipped the balance heavily in favour of tenants, making it more challenging for landlords to manage their properties effectively.

Additionally, the Victorian government's decision to hike land taxes has further compounded the woes of property investors.

Despite the current struggles, there is a significant opportunity in Melbourne's property market.

Property prices are considerably below replacement costs, creating a unique buying opportunity.

This situation is similar to where Brisbane and Perth were three years ago.

One thing is becoming clear, if you wait around until interest rates fall, all you’re going to be doing is playing tug-of-war with owner-occupiers over the best properties.

Moving forward, there will continue to be a flight to quality and the various sectors of the Melbourne real estate market will be segmented, which is a more “normal” property market.

There is a clear flight to quality with A-grade homes and investment-grade properties still in short supply for the prevailing strong demand, but B-grade properties are taking longer to sell and informed buyers are avoiding C-grade properties.

Buying properties below replacement cost in a market poised for recovery could yield substantial returns as the economic conditions improve and interest rates eventually fall.

Not only will strategic investors benefit from Melbourne’s long-term growth, but they will also get a “free kick” as the Melbourne property market catches up and reverts to its loan term mean growth rates.

ALSO READ:

10 most expensive suburbs in Melbourne

The best suburbs to invest in Melbourne in 2022

These suburbs joined the million-dollar club in Melbourne

About Joseph Ballota Joseph is a Property Coach who put hundreds of people on the road towards wiping away their mortgage in under 5 years through expert Property Investment Plans.