37 Beauville Avenue, Murrumbeena was valued at $750,000 to $800,000 about a year ago is expected to fetch between $850,000 and $900,000 on Saturday. Murrumbeena has stepped out from the shadows of its higher-priced neighbours to take centre stage as Melbourne’s price pacesetter.
Over the past year the median house price in the suburb has surged by 27.5 per cent to $954,000, new data from Domain Group shows.
It has also outperformed some of Melbourne’s top blue-chip locales including Toorak and Canterbury, which recorded no growth during the period.
Woodards Carnegie director Ruth Roberts said price growth in suburbs such as Carnegie, Glen Huntly and Ormond could be pushing buyers across the border to Murrumbeena, which “has always been the poor cousin”.
She said a three-bedroom house at 37 Beauville Avenue, Murrumbeena, she appraised for $750,000 to $800,000 about a year ago was expected to fetch between $850,000 and $900,000 on Saturday.
“Carnegie is becoming quite populated with apartments, where as in Murrumbeena there is less likelihood that you’re going to have an apartment block springing up next door, and so allotments are still quite generous,” she said.
“Houses are now selling for up to $2 million in Murrumbeena.”
Ms Roberts said Murrumbeena Primary School and easy access to Chadstone have also proved to be major drawcards for buyers.
Domain Group’s senior economist Andrew Wilson said the inner south had been a growth region over the past year, and Murrumbeena is a more affordable option to Malvern East, Bentleigh East and Caulfield.
House prices in South Melbourne, South Yarra and Armadale in the inner city have also soared more than 20 per cent over the year, as have Hawthorn East and Warrandyte in the inner east.
Auctioneer Richard Earle of Jellis Craig Hawthorn said price growth was driven by old homes being knocked down in Hawthorn East to make way for new buildings.
“A lot of the growth that we’re seeing is that well-positioned blocks of land will now make $2 million or more pretty consistently, meaning the end product will command $3 million to $5 million,” he said.
“The wealthy seem to be moving in and securing their position by buying more land if it becomes available immediately adjoining them.”
He said the suburb, well known for its tree-lined streets, was also popular for its close proximity to sought-after private schools and public transport.
The cheapest suburb in Melbourne’s top 10 performers is Braybrook in the west, where the median has jumped by 21.7 per cent to $486,750.
Barry Plant Sunshine director Jason Allen said many developers had set their sights on the suburb because it was affordable compared to other suburbs a similar distance from the CBD.
“A lot of the housing in Braybrook is ex-housing commission homes – which are your weatherboard and concrete homes – and a lot of them are set on land sizes of 600-square-metre-plus, and it allows for a lot of redevelopment,” he said.
“The resale value of townhouses and new homes in that area are quite high, so that’s a big thing for a lot of buyers.”
In the inner south, Ormond and Oakleigh East also emerged as top performers, while Ashburton came out on top in the outer east.
Throughout the regions, the inner east was the top performer for houses, growing 13.4 per cent over the period, followed by the north east with 13.3 per cent and the inner city and outer east with 12.7 per cent.
The inner south also grew by 11.8 per cent, while the north climbed 6.8 per cent and the south east and west increased 6.3 per cent and 6.1 per cent respectively.
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