Melbourne houses tipped to hit new high by Christmas
PropTrack's latest quarterly home figures show it's battler 'burbs like Frankston North and Brooklyn leading the city's price charge.
Inner-city pockets including Collingwood and Parkville were also among the top performing areas as almost 380 suburbs recorded an uptick in the past three months.
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And with forecasts of further rate cuts, despite the Reserve Bank's shock hold decision this week, fuelling price rise confidence it's helping to drive expectations that Greater Melbourne's $979,979 median house value could top seven-figures before December.
PropTrack senior economist Anne Flaherty labelled the numbers 'a bit of a comeback for Melbourne' and said more was on the way as FOMO, the fear of missing out, creeps back into the market.
'I actually do think that home prices in Melbourne will hit a new record high by the end of the year, just based on the rate at which we're growing at the moment,' Ms Flaherty said.
'I think there's a very real possibility that we could get there.'
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PropTrack's data showed Melbourne's median house value was 1.6 per cent higher in June compared to 12 months earlier, with the Reserve Bank's two rate cuts this year helping to boost competition in the market.
'And I think from the perspective of buyers, we're sort-of seeing a bit of evidence of FOMO,' Ms Flaherty added.
Prominent Melbourne-based buyers' advocate Cate Bakos agreed it was likely the city's median house value would surge to a new high by the year's end.
'I am experiencing record high inquiry and also many interstate investors committing to working with me, it hasn't been this hectic since 2021,' Ms Bakos said.
'Any suburbs offering houses on freehold in the sub-$1m market are experiencing high rates of competition.'
The buyer's agent said she did not believe the RBA's decision to leave interest rates on hold this week would diminish buyer sentiment, with most people were expecting further rate cuts later in 2025.
Across the June quarter, Melbourne's top suburbs for median house value growth achieved figures between 4 per cent and 5 per cent.
They included Glen Huntly, which now has a $1,507,058 median, Wandong, $871,817, Braeside, $1,530,522, Williamstown North, $1,143,023, and Frankston North, $603,715.
For purchasers seeking a smaller residence, Wallan in Melbourne's outer north performed best for units with median prices zooming up 10 per cent to $483,070.
In regional Victoria, houses in the East Gippsland town of Orbost increased 8 per cent to hit $350,875 and Castlemaine units soared 9 per cent to $647,860.
Closer to the Victorian capital, OBrien Frankston's Mark Burke said first- and second-home buyers, retirees and investors were among those trying to secure homes in Frankston North.
He said this was thanks to the area's proximity to the beach and top-notch community infrastructure such as public transport, schools, shops and sports clubs.
In June, the suburb's median house price stood almost $22,000 higher than three months prior.
Mr Burke said the 'sizzling hot' local market particularly appealed to interstate-based investors hoping to capitalise on its affordability with up to 200 buyers and buyers' advocates inspecting homes during some sales campaigns.
'It's the highest rate of interstate interest I've seen in 40 years, it's about three times higher than usual,' he noted.
Nelson Alexander Fitzroy partner Rick Daniel covers Melbourne's inner northern suburbs, including Collingwood where median house values rose 3 per cent, more than $41,000, to reach $1,284,545.
Mr Daniel said the number of interstate investors inquiring about the suburb had steadily increased lately, although houses in were tightly held and did not often come up for sale.
He credited Collingwood's proximity to the CBD and MCG, plus Smith's St's eateries, pubs and retail offerings, for driving its popularity.
'With all the local amenity, if you're looking for inner-city living, it's as good as it's going to get,' Mr Daniel said.
In the western suburbs, Compton Green Inner West's Bella Doria said Williamstown North offered both lifestyle appeal and value for buyers. Young families, professionals and investors are among the most frequent buyers.
'You enjoy all the perks: beach proximity, easy access to the CBD via train, community charm, it has all the best Williamtown has to offer just at a more affordable price,' Ms Doria said.
Neighbouring Williamstown is one of the priciest suburbs in Melbourne's west with a $1,536,493 median house price.
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