News

This is why Victoria has a two-speed housing market

PR Newswire

Broadbeach Waters, Qld., Sep. 2, 2021 /Medianet/ --

This is why Victoria has a two-speed housing market 

 

The two-speed Victorian market 

 

The state of Victoria has seen the emergence of a two-speed housing market, according to the latest research from Australia's first national property buyer's agency network, BuyersBuyers. 

 

Pete Wargent, the co-founder of BuyersBuyers, said that 'the pandemic has encouraged homebuyers and renters alike to seek more space while eschewing share-houses and the high-density and high-rise tower blocks of the Central Business District of Melbourne". 

 

"While houses in some desirable Melbourne suburbs and especially regional locations recorded exceptional price growth over the past year, at the same time some sectors of the unit market are struggling and have experienced falling prices and rents", Mr Wargent said.  


"Oversupply has been an issue for some time in the inner-city unit market of Melbourne in particular, and this has been reflected in weakness in price performance". 

 

Strength in detached houses 

 

House price growth has been spectacularly strong in regional housing markets over the past year, such as on the Mornington Peninsula and in Geelong.  

 

Mr Wargent of BuyersBuyers said, "some suburbs in Melbourne have also recorded strong price growth for detached houses, albeit nothing like as strong as seen in the most robust regions over the past year.  

 

Figure 1 – Strong annual price growth 

 

SA4 Region 

Property Type 

12m price change 

Mornington Peninsula 

House 

27% 

Geelong 

House 

18% 

Melbourne – Outer East 

House 

13% 

Melbourne – South-East 

House 

12% 

Melbourne - North-East 

House 

11% 

  

Source: RiskWise, CoreLogic 

 

At the suburb level, Victoria's top performing suburbs list is dominated by detached house price growth across the Mornington region.  

Page Break 

Figure 2 – Suburbs with strong price growth 

 

SA4 Region 

Suburb 

Postcode 

Property type 

12m price change 

Mornington 

Somers 

3927 

House 

46% 

Mornington 

Blairgowrie 

3942 

House 

44% 

Mornington 

Crib Point 

3919 

House 

43% 

Mornington 

Sorrento 

3943 

House 

42% 

Back to News