The value of green suburbs on house prices

Melbourne’s greenest suburbs are also some of Melbourne’s most expensive.

REIV analysis shows that greener areas with higher tree density are associated with higher median house prices. A suburb with tree coverage 50 per cent higher than the average for Melbourne sees an increase on their median house prices of $237,000. Two of Melbourne’s greenest suburbs had a median house price of over $2.5m in the most recent June quarter with Balwyn and Canterbury ranking seventh and eighth respectively for tree density.

Top 10 Melbourne suburbs for tree density

Bargain suburbs for buyers seeking leafy areas

Some green areas still offered great value with median house prices under $1m. Ringwood East ranked as Melbourne’s sixth leafiest area while having a relatively more affordable median house price of $950,000. With house prices also below $1m Heidelberg Heights was within Melbourne’s 30 greenest suburbs while scoring above Deepdene which had a median price of $3.75m, more than 3 times the price!

How tree canopies could explain some differences in house prices

Heathmont had the 3^rd best tree density in Melbourne which might partially explain why houses there sell for more than $150,000 more compared to neighboring Bayswater and Bayswater North. Frankston South has a significant price premium of more than $350,000 and a higher tree density rank compared to both Frankston and Frankston North which might be a cause of the house price variation.

To read the full story in the Herald Sun click here