A developing outer-western region has outshone more fancied postcodes to be Melbourne’s biggest money-making market of the past decade.
The median house price in Rockbank-Mt Cottrell has gained an average 7.9 per cent each year since 2010 to hit $598,268, according to research by CoreLogic and Property Investment Professionals of Australia.
This puts it well above metropolitan Melbourne’s average annual growth rate of 4.9 per cent.
Doncaster East was the next most consistently strong market of the decade, with a typical house in the “south” part of the suburb notching yearly 7.8 per cent price gains to reach a $1.26 million median and those in the “north” part rising 7.5 per cent to $1.3 million.
Abbotsford, Doncaster, Templestowe Lower and Bulleen also joined the million-dollar club off the back of stellar annual rises since 2010.
PIPA chairman Peter Koulizos said the latter had developed from being “fairly rural 10 years ago” to a residential area.
“New homes are generally sold at a premium, resulting in high capital growth.”
Mr Koulizos tipped the growth spots of the next decade to be those undergoing gentrification, like Footscray, West Footscray, Maidstone and Braybrook, given this had been the case for several stars of the last decade, namely Abbotsford, St Kilda East and Elwood.
“If you go back in history, places (like these) were not sought after,” he said.
“Now they’re at the top end of the market.”
Since being rezoned for residential purposes in 2012, it had become home to 6500 residents — 5000 of those in Woodlea — as well as a modern train station, schools and childcare centres, a sporting precinct, cafe, medical centre and parks.
“Rockbank will have about 35,000 residents in 10-15 years,” Mr Dean said.
“We’re only half an hour from the CBD on the train. And we’re creating quality amenities and well-maintained streetscapes (so) you’d expect to see more great price growth to come.”
Ryan and Kacey White bought into Woodlea about five years ago, built a four-bedroom house, and moved in with daughters Emma, now 9, and Chloe, 7, three years ago.
“We felt it was a growing area and the price was right to get a large block and a large house,” Mr White said.
“We figured … the kids could grow up with schools, parks, space and a good community feel.”
CoreLogic head of research Tim Lawless said Melbourne and Sydney had outperformed most markets over the past 10 years, thanks to “strong economic conditions and high rates of migration, which has fuelled housing demand”.
“However, such high rates of capital gain have eroded housing affordability and compressed rental yields,” he said.
MONEY-MAKING MARKETS OF THE DECADE
1. Rockbank-Mt Cottrell: 7.9% average annual median house price rise, from $279,684 in 2010 to $598,268 in 2020
2. Doncaster East (South): 7.8%, $593,736 to $1,263,792
3. Doncaster East (North): 7.5%, $636,597 to $1,306,834
4. Abbotsford: 7.4%, $604,463 to $1,238,627
5. Doncaster: 7.3%, $673,307 to $1,366,596
6. Elwood: 7.2%, $1,040,808 to $2,094,366
7. Templestowe Lower: 7.2%, $616,004 to $1,230,223
8. Mickleham-Yuroke: 7.1%, $283,824 to $566,064
9. St Kilda East: 7.1%, $723,131 to $1,441,491
10. Bulleen: 6.9%, $656,440 to $1,274,829
Metropolitan Melbourne average: 4.9%
Source: Property Investment Professionals of Australia (PIPA) and CoreLogic
Samantha Landy, realestate.com.au, 29 February 2020
Gold Coast Bulletin, 29 February 2020
The Mercury, 29 February 2020
Cairns Post, 29 February 2020
Geelong Advertiser, 29 February 2020
Townsville Bulletin, 29 February 2020
Daily Telegraph Australia, 29 February 2020
Northern Territory News, 29 February 2020