Things change a lot in ten years, and the Australian housing market is not immune. This transformation has been marked by several key trends and shifts that have reshaped the way Australians buy, sell, and invest in real estate.
The pandemic, oversupply, sustainability, changing preferences and rapid price growth are just a few examples contributing to historical change. Not to mention the digitisation of the real estate industry, which grants buyers and sellers access to a landscape of information like never before.
Even through all the ups and downs, one city has consistently and unsurprisingly outperformed the rest: Melbourne.
At the heart of the metamorphosis is a strong economy, steady population growth, and the city’s appeal as a prime location for both domestic and international investors. The demand for Melbourne properties has been further amplified by the city’s diverse range of housing options, which cater to a wide spectrum of buyers — from first-home buyers to seasoned investors.
Growth in ballpark terms is always welcome news, but which suburbs have hit a home run? Let’s take a look at the Melbourne destinations where house values have essentially doubled in a decade.
A Snapshot of a Decade of Growth
Over the past decade, the search for a better lifestyle has sent buyers flocking to the Mornington Peninsula. The sunny Melbourne suburbs dotting the area have emerged as hotspots for property price growth. These include St Andrews Beach, Dromana, Frankston North, Crib Point, and Sorrento, all of which have experienced substantial increases in property prices.
However, it’s not just the appeal of these individual suburbs that have contributed to their growth. Broader market trends, city planning initiatives, and infrastructural developments also play a pivotal role. For instance, the expansion of the Mornington Peninsula region, a locale renowned for its wineries, beaches, and relaxed lifestyle, has had a ripple effect on its surrounding suburbs.
With all signs pointing to long-term growth, this has piqued the interest of those looking for their first or next investment property.
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The 5 Suburbs Leading the Way
1. St Andrews Beach, 3941
St Andrews Beach, a serene coastal enclave, has experienced a remarkable surge in property values over the past decade. This impressive growth can be attributed to its captivating coastal appeal and the ever-increasing demand for beachfront properties. With its close proximity to Melbourne’s CBD, this tranquil suburb has become a magnet for home buyers and investors alike. The result? A consistent demand that has propelled property prices to new heights.
Spanning a distance of approximately 3.1 square kilometres, St Andrews Beach is home to an abundance of park areas that account for nearly 37.2% of its total area. Beautifully kept parks and coastal living have both been major draw cards for families and home buyers.
In line with overall trends on the Mornington Peninsula, the St Andrews Beach area has had the most substantial price appreciation over the past decade, with property values rising 145.6%. This remarkable growth cements its status as one of Melbourne’s most sought-after beachside suburbs.
2. Dromana, 3936
Dromana has been one of Melbourne’s most popular holiday spots for some time, and demand for coastal homes on the Peninsula isn’t showing any signs of slowing down. The Dromana area offers easy access to the beach, as well as a great selection of restaurants, wineries and other attractions.
Just over an hour’s drive from the CBD, this charming suburb combines the allure of a small-town atmosphere with the convenience of a larger city. Whether purchased for permanent residence, holidays or investments, it’s no surprise that Dromana has seen a consistent rise in property prices..
Over the past decade, Dromana has seen property values climb by more than 130%, cementing its position as a popular and competitive location for real estate investment.
3. Frankston North, 3200
Frankston North has undergone a significant transformation over the past decade. From significant infrastructure projects to attracting a growing number of young professionals, Frankston North has witnessed a substantial uptick in property values. Its affordability, combined with its prospects for future growth, positions it as an attractive option for both first-time homebuyers and savvy investors. In the span of a decade, Frankston North has seen property values surge by an impressive 132%. This has earned it a reputation as a compelling destination for those seeking an evolving community with the potential for substantial returns on investment.
4. Crib Point, 3919
Now, turning our attention to Crib Point, we find a quieter suburb that has quietly but steadily witnessed an upward trajectory in property values. Its charm emanates from the fusion of a serene, idyllic setting with affordable housing options, making it a reliable choice for families and retirees seeking the quiet life.
Spanning approximately 6.5 square kilometres, Crib Point features 12 parks, covering nearly 2.3% of its total land area. Green spaces, beaches and pockets of natural beauty are a winning formula for leisure and recreation.
Over the course of a decade, Crib Point has seen property values rise by over 130% and the promise of lasting returns on investment.
5. Sorrento, 3943
Last but not least, we have Sorrento. Renowned for its historic limestone structures and picturesque sandy shores. Sorrento has undergone a substantial surge in property values, owing to its fusion of historical significance, cultural richness, and natural splendour.
Covering an area of approximately 7 square kilometres, Sorrento is full of excellent property opportunities, local amenities and a real community feel. This offers residents abundant opportunities for relaxation and recreation amid its picturesque beachside views.
Over the span of a decade, Sorrento has seen house prices soar by 121%, marking our fifth and final example of a Melbourne suburb that has doubled in price.
Predictions for the Future
Looking forward, all signs point toward long-term future growth. Industry experts predict that the next decade will continue to see a sustained and steady incline in Melbourne’s property market.
However, the suburbs that will see the most significant price growth may not be the same as those that dominated the past decade. Factors such as infrastructure projects, changes in population demographics, and evolving buyer preferences will likely influence which suburbs emerge as the top performers.
For property investors, this presents both opportunities and challenges. On one hand, there’s the potential for high returns in suburbs poised for growth. On the other, there’s the risk of investing in areas that may not perform as well due to factors beyond their control.
If you’re an investor weighing up your options, it’s worth seeking the advice of a well-versed buyer’s agent for Melbourne’s property market.
Pinpoint Your Investment Strategy with Top-Performing Buyer’s Agent in Melbourne
With so many suburbs and areas to choose from it can be difficult to know which ones have the most potential for the next ten years ahead. Collaborating with an experienced buyer’s agent in Melbourne is the first step to success. Together, we can work toward an investment strategy to secure your financial future.