Aintree and Balwyn North Among Top-Growing Suburbs in Melbourne

South-eastern Narre Warren North recorded the largest jump, up 38.4 per cent to the end of December, to a median of $1,693,000 on Domain data. It was followed by growth suburb Aintree (up 34.8 per cent to $755,000) and inner-eastern Balwyn North (33.4 per cent to $2,375,000).

Unit prices grew the most in Mitcham, where they jumped 21.3 per cent over the five years to $752,000. It was followed by Highett (19.6 per cent to $658,000) and Brighton (17.9 per cent to $1.2 million).

Melbourne’s overall median house price rose 22.1 per cent in the same period. Although it remains below its peak, the market has somewhat improved in recent weeks as clearance rates point to modest price rises and home buyers show renewed activity in expectation of a Reserve Bank rate cut later in the year.

The analysis excludes the Mornington Peninsula, but growth was even stronger in popular sea-change destinations that swelled during lockdowns such as Blairgowrie, Sorrento and Rye, which were up 66.3 per cent, 52.9 per cent and 52.8 per cent, respectively.

KPMG planning and infrastructure economics director Terry Rawnsley said strong results in suburbs further from the city reflected entrenched affordability issues and lockdown-era preferences for larger homes.

“There’s definitely a ripple effect coming through those middle-ring suburbs,” he said. “They’ve been priced out of the [more inner] inner suburbs and are heading out along the train lines by a couple of stops.

“There’s definitely places in the middle-ring suburbs where people wanted to get out of the inner city. The two-bedroom townhouse was less appealing than the detached four-bedroom house.”

Narre Warren North in particular reflected this trend; recent buyer Edward Hao said he saw great value in the leafy suburb.

“I moved from Bentleigh East … we loved [Narre Warren North] because the price is affordable. When you pay the same price you can’t buy your dream house anywhere in Melbourne, but you can buy your dream house there,” he said. “We love the animals, you can see kangaroos. The mountains are visible and there’s no traffic.

“We never asked our friends to come [visit in Bentleigh East] because the streets are too narrow, and the streets are packed up. There’s no room for them to come and park.”

Belle Property Berwick director Anne Haynes sold Hao his new home in Fontaine Terrace, Narre Warren North for $3,388,888. She said other buyers were replicating Hao’s move out from smaller inner suburbs.

“We’re getting international buyers, but we’re also getting buyers from inner suburbs, say Bentleigh, Oakleigh, and everywhere in between who are living on cramped smaller blocks,” she said. “If you move out to Narre Warren North, it’s tranquil and peaceful.”

Haynes said a diverse mix of properties meant buyers of most budgets had options in the acreage suburb.

Ray White Berwick director Debbie Brettoner said it had also benefited from the opening of a new mosque which had proved attractive to the Islamic community.

“The mosque has brought a lot of people out of Dandenong and Hallam, and they want the bigger blocks of land, closer to the mosque,” she said. “And then COVID. People said, ‘I can work from home, I want the peace and tranquillity of the big block’.”

Brettoner said it was common for homeowners to try to stay in the area after selling.

“I sold a house for someone who looked to see if they could find something for 12 months,” she said. Those buyers ended up buying in nearby Berwick after giving up on their first choice of suburb, Brettoner said.

Rawnsley said a strong five-year result in a growth suburb like Aintree reflected a maturing of a greenfield market, as developers began shifting away from building entry-level homes to cater for local upgraders.

“The suburbs out towards Melton is reflecting a fuller build out of the community,” he said. “As those markets pick up [developers] try to pick up the margins a bit.”

Harcourts West Realty listing agent Matthew Farrugia said newer stages of the suburb’s development that were more expensive had been popular with previously entry-level buyers.

Farrugia said the opening of a new private school had also proved to be a drawcard, even drawing interest from overseas.

“There’s a fair bit of multicultural people there. It’s a very strong Indian community,” he said. “A lot of [growth] came once the school [Bacchus Marsh Grammar] came through. It just boosted it by heaps and then the lockdown came through, it was like a double effect.”

Farrugia said properties tended to be larger to accommodate multigenerational families, which also kept prices high.

“If you drive through Aintree, they’re predominantly double-storey houses,” he said. “There’s a lot of million dollar homes there because they’re all big.”