High-priced suburbs offer best discounts

As reported by The Age, a cluster of well-heeled suburbs on Melbourne’s bayside have recorded the steepest house price falls in the city over the past three months, and experts say a sluggish market and high interest rates are to blame.

CoreLogic data shows Albert Park’s median house value fell 9 per cent in the three months to October, the most rapid decline in Melbourne. It was followed by South Melbourne (down 8.6 per cent) and Port Melbourne (8 per cent).

Balaclava, Elwood and St Kilda were among the top 10 suburbs with the fastest house price declines, and their median values went backwards between 7.6 and 5.9 per cent. All six bayside suburbs had median values of more than $1.3 million, and were within the top quartile of house prices in Melbourne.

Unit prices fell the most in Malvern East, down 6.4 per cent. It was followed by Flemington (down 6.1 per cent) and Ascot Vale (down 5.9 per cent).

CoreLogic head of Australian research Eliza Owen said the price falls in Albert Park were significant.

“It’s a massive shift and it’s the equivalent to over $200,000 taken off the median value. Albert Park firmly sits in the higher end of house values where, broadly, through this cycle values have fallen the fastest,” she said. “You could say the same for Elwood with both suburbs’ house medians sitting above the $2 million mark.”

Our view at Strategic is that buyers wanting get into these tightly-held suburbs are offered a rare opportunity, not to be missed.  Our mission is to by our clients the best available property, within their Brief and budget, at the best possible price.