A new study shows Melbourne houses have notched up annual price gains of 8.1% over the past 25 years – the highest across Australia.
Groundbreaking research by Aussie Home Loans and CoreLogic has revealed the Australian suburbs where price growth has been strongest over the past 25 years.
And it turns out that Melbourne has been a top performer, accounting for 41 of the nation’s top 100 suburbs (by price growth). The Victorian capital has seen house prices rise an average of 8.1% annually – compared to 6.8% nationally, since 1993.
In dollar terms, it means Melbourne home owners have enjoyed an average increase in house equity of around $28,000 each year over the last quarter century – the highest of any state capital.
Looking back… looking ahead
To put this growth in perspective, way back in 1993, the median Melbourne house price was $117,000. Today the median value is $825,000. It’s a similar growth story with apartments. A quarter century ago, the median apartment value in Melbourne was $116,000. Today, buyers can expect to pay a median price of $574,000.
Over the past 25 years, Melbourne house values have moved through seven periods where annual capital gains exceeded 10%. And estimates by CoreLogic show that in another 25 years, Melbourne’s median house value could reach a whopping $5.8 million and apartments could cost $2.8 million! It goes to show that the price you pay for your place today can seem pretty reasonable with the passage of time.
Melbourne’s top performing suburbs – gains of 1,100%
It’s easy to assume some of Melbourne’s ritzier suburbs would have topped the league table of price growth over the past 25 years. But that’s not always the case.
Taking out the city’s number one spot for price growth since 1993 is Flinders on the Mornington Peninsula, where houses have notched up price gains of 1,100% since 1993. It’s taken the median house price from just $126,000 a quarter century ago, to $1.5 million today!
The Maribyrnong region has done well too, with Kingsville coming in at second place on Melbourne’s league table of price growth, recording 25-year house price gains of 1,076%. Amazingly, houses in Kingsville could be purchased for $86,500 back in 1993 but today’s buyers are looking at a median price of $1 million.
Geelong region shines
The Barwon region, in Victoria’s south west, has enjoyed some spectacular property price growth since 1993, largely driven by Geelong.
Barwon Heads tops the leader board with house price growth of 812% since 1993. A house in Barwon Heads may have set buyers back around $103,000 25 years ago but these days the median house price is $940,000 – an exceptional gain!
Meanwhile, in the state’s south eastern Gippsland region, Cape Woolamai in the Bass Coast district has recorded price gains of 565% over the 25-year period. That’s taken the median house price from just $63,000 in 1993 to $419,000 today.
Take a closer look to see which Victorian suburbs have been the top performers over the past 25 years by viewing the full Aussie/CoreLogic 25 years of housing trends report or contact your Aussie Broker for a free copy.
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