As Melbourne’s outer suburbs traditionally offer a cheaper entry into the property market, it attracts many out-of-area buyers who find themselves priced out of the inner suburbs.
As for reported by Christina Zhou for Domain Group, every house that hit the auction block in Hoppers Crossing, Forest Hill, Thomastown, Keysborough, and Eltham sold under the hammer (or shortly after) in October. Homeowners in the more prestigious suburbs of South Melbourne and Prahran also enjoyed a solid month at auction.
Situated 20km north-east of the central business district, Eltham is known for its large family homes, tree-lined streets and verdant parks. Lured by its amenities, many out-of-area buyers are flocking here and families are particularly drawn to Eltham because of its good schools and capital growth potential.
All of the 16 auctioned houses were sold in October. Buyers paid a pretty penny, too. According to data from Domain Group, the median house price at Eltham is now $803,250 – 13.1% higher than it was a year ago.
Blackburn and Forest Hill
Homes that were auctioned in Blackburn and Forest Hill also achieved a 100% clearance rate, a strong indicator of a revival in the eastern suburbs.
“Those suburbs were flat earlier this year, and we’ve definitely seen clearance rates picking up quite well in the outer east over spring,” said Stephen Le Get, director at Jellis Craig Blackburn.
An urban fringe suburb situated 23.1km south-west of the central business district, Hoppers Crossing benefited from the infrastructure improvements in neighbouring Werribee (such as the Pacific Werribee shopping center).
More vendors have opted to auction rather than sell privately over the past six to 12 months due to increased competition from interstate and eastern-suburb investors.
“Demand has exceeded normal expectations; we’re usually getting about 20 inspections [during a campaign], now we’re getting between 80 and 100,” said Kirsty Cunningham of YPA Estate Agents.
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