Melbourne’s property markets are very fragmented.
Sure it is having a cyclical downturn after five years of strong growth.
But while some suburbs a falling in price (some almost 20% over 2018) other suburbs holding your own.
Domain reports that two trendy neighbouring suburbs close to Melbourne’s CBD were the biggest victims of the property market downturn in 2018, with house prices in both suburbs falling almost 20 per cent over the year.
While overall property values in Melbourne fell 7 per cent in 2018, in the hip suburb of St Kilda East, about 6 kilometres south-east of the CBD, house prices dropped 18 per cent in 2018 according to Domain Group data shows.
By the way… apartments in this great location could not fall anywhere near as much in value
And house prices in South Yarra fell 17.7 per cent, although values are still 57.7 per cent higher than they were five years ago.
Currently many of Melbourne is outer suburbs with median prices under $770,000 are defying the downturn.
But before you get too worried…
Not all properties in the suburbs telling value I such a large amount.
The fall in prices tends to reflect the type of stock being sold rather than a change in capital growth.
Domain’s data analyst Nicola Powell explained:
“What we might be seeing is that those owners of multimillion-dollar homes in the area are holding off and more homes at the lower end of the price spectrum in the suburb being sold”.
Overall apartments held their value better than houses.
Apartment prices fell most in Blackburn (-14.3 per cent) followed by Cheltenham (-13 per cent) and Abbotsford (-12.4 per cent).
In general suburbs where there was a lot of new development suffered most.
Suburbs where houses prices fell most in 2018
- St Kilda East: -18 per cent
- South Yarra: – 17.7 per cent
- Clayton: -17.4 per cent
- Abbotsford: -17.1 per cent
- Flemington: -16.8 per cent
- North Melbourne: -16.8 per cent
- South Melbourne: -16.7 per cent
- Fairfield: -16.5 per cent
- Lower Plenty: -16.5 per cent
- Collingwood: -15.6 per cent
Suburbs where apartment prices fell most in 2018
- Blackburn: -14.3 per cent
- Cheltenham -13 per cent
- Abbotsford: -12.4 per cent
- Toorak: -11.7 per cent
- Surrey Hills: -10.2 per cent
- Sandringham: -9.9 per cent
- Prahran: -9.1 per cent
- Carnegie: -8.7 per cent
- Armadale: -8.4 per cent
- Mount Waverley: -8.2 per cent