What to expect in 2018

Author: Richard Simpson, REIV President
Date: 9 Jan 18

Price growth has been widespread across Melbourne in recent years; however the city’s west and northwhat-to-expect.jpg continue to offer affordability. Given increasing buyer demand for areas that offer value, suburbs yet to reach the citywide median house price are best placed to experience strong price growth in 2018.  The following are suburbs to watch in 2018.

Ideally located just 13km from the CBD, Albion remains well below the citywide median house price and is poised for significant capital growth. The western suburb has already benefitted from its proximity to the city, with its median house price increasing by almost 27 per cent in the year to September 30. Price growth has also been supported by increased auction activity with its year-to-date clearance rate currently sitting at 78 per cent. 
Median house price: $665,000

Ardeer is another western suburb that offers affordability despite being within 20km of the CBD. The suburb has experienced significant capital growth over the past year, up an impressive 31.6 per cent on September 2016 figures. Serviced by a train station, Ardeer is well positioned for strong growth as buyers look for new growth opportunities within the middle ring.
Median house price: $658,750

Gentrification is improving the attractiveness of this north western suburb, which has experienced some of the city’s strongest price growth this year. Despite its median house price increasing 38.7 per cent over the year, Broadmeadows remains relatively affordable given it is situated just 16km from the CBD. Strong auction activity this year has seen more than 150 auctions held with 77 per cent selling under the hammer – more than doubling last year’s auction volumes and sales. 
Median house price: $595,000

This northern suburb has recorded some of the city’s highest auction activity this year with more than 350 auctions held and 85 per cent selling under the hammer. Strong buyer demand in Melbourne’s outer ring has boosted values in the suburb with the median house price up 20.8 per cent over the year. Homes sold by private sale have also been highly sought after with properties selling in a median of 30 days in November. 
Median house price: $600,000

Located 19 km north of Melbourne’s CBD, Mill Park has recorded significant median house price growth of around 21 per cent this year. While the suburb has experienced high auction volumes (288), its year-to-date clearance rate is 88 per cent. The suburb’s private sale market is also one of the city’s best with homes selling in a median of just 25 days in November. The high clearance rate and low days on market both suggest that supply is not currently meeting demand in this middle ring suburb. 
Median house price: $687,500

This 27-year-old suburb is starting to reach maturity, offering buyers easy access to the city combined with quality local amenities. Situated 23km north-west of the CBD, Taylors Lakes has recorded median house price growth of 16.4 per cent in the past year. With the median house price in Melbourne middle ring set to break $1 million next year, Taylors Lakes provides a more affordable alternative without really needing to compromise on proximity to the CBD. 
Median house price: $718,500

Surrounded by suburbs with higher median house prices, Bayswater North is poised for strong price growth in 2018. House prices in the eastern suburb rose 17.1 per cent over the year, as buyers were priced out of neighbouring Ringwood East. Predominately a private sale market, homes in Bayswater North sold in a median of just 21 days in November. 
Median house price: $748,000

Situated 19km west of the CBD, Albanvale has experienced significant price growth this year with its median house price up 28.8 per cent. Homes in the middle ring suburb sold in a median of just 21 days in November, indicating a high level of buyer demand. New residential developments are likely to further boost interest in the suburb, driving long-term price growth. 
Median house price: $658,500

Doreen in the city’s north-east continues to offer affordability within 30km of the city, with house prices in the suburb increasing 12 per cent over the year.  The suburb has an exceptionally strong private sale market with homes selling in a median of just 17 days in November. New infrastructure commitments by the State Government, such as the Mernda rail extension project, will improve the liveability and attractiveness of Doreen in coming years.  
Median house price: $534,625       

Surrounded by multiple golf courses and a short distance to the beach, Frankston North offers affordability in Melbourne’s south-east. Despite annual price growth of 35.2 per cent, the suburb’s median house price remains below $500,000. Given significant price growth in nearby Frankston, Frankston South and Seaford, Frankston North is expected to be a top performer in 2018. 
Median house price: $491,500