What's hot 2013 (Melbourne)

Fairfield is a north eastern suburb of Melbourne that has a population of 5,946 and is 6km from the city. Over the last 12 months Fairfield units have grown by 16.7%. The suburb has excellent access to the city via train, bus or car. This area mainly attracts single professionals who are in their 30’s who mainly commute to the city bringing money back with them into Fairfield. The economy benefits from Northern Melbourne Institute of TAFE’s campus, St Anthony’s Primary and Fairfield Primary. Currently clearance rates are a healthy 71% and the long term trend is above the Melbourne average which can only mean good things are still to come.


Coburg North, with its 6,576 people is 10km from the CBD; just north of Coburg and Brunswick. Over the last 12 months growth has been 3.5%. The suburb has two train stations: Batman and Merlynston but most residence choose to commute via car. The area is popular with families who are mainly white collared professionals. The economy is ranged; a lot of the areas income derives from city commuters however there are some light industrial companies, corner shops, restaurants and cafes that operate in the area. Coburg’s clearance rate is above trend at 68% and the long term growth for units has been impressive, almost double the national average.


Armadale a Blue Chip suburb, with its population of 8,760 is located in Melbourne’s inner east; just south of Toorak, 7km from the CBD. Over the last 12 months Armadale has shown resilience despite the downturn, growing by 0.7%. The suburb is based in an excellent location which features two rail way stations (Armadale and Toorak), and good access into the city via train, tram and bus. Armadale has a diverse economy which encompasses leading private schools such as Lauriston’s Girls’ School and King David’s School while also having the High Street shopping precinct for the fashion conscious and Glenferrie Road, which is known for its vibrant restaurants, cafés and shops. The aforementioned attracts great demand so auctions are popular with 67% of properties selling through this method. The demand can also be seen in the current clearance rate of 73%. The long term trend for units in this suburb has been excellent and we predict that this trend will continue.


Elwood, a Bayside suburb, with its population of 14,638 is located in the south eastern corridor of Melbourne 8km from the CBD. Over the last 12 months prices in Elwood have fallen by 2.6% as a result of the downswing however in recent months we’ve seen a move to the upside. Demand is strong as the suburb is positioned very well, being close to the bustle of the city, night life of St Kilda, the beach and the affluence of nearby Brighton. Elwood features Melbourne’s second largest single female population and a young professional demographic with a median age of 34. This benefits the performance of the economy through its three café precincts on Ormond Road, Glen Huntly Road and Tennyson Street which are all lined by picturesque London Plane trees. With clearance rates just below trend we see Elwood as good buying right now and predict that it will outperform most suburbs over the next 5 years.


St Kilda, houses 17,795 people and is located on the Bay just south of Albert Park 6km from the CBD. Over the last 12 months unit prices have dropped by 1.4%. The suburb is well connected to Melbourne’s CBD by trams and a dedicated light rail line. St Kilda’s economy features many tourism attractions and lifestyle choices which include Luna Park, the Esplanade Hotel, Acland Street shops and restaurants and Fitzroy Street’s shopping precinct too. Currently St Kilda’s clearance rate is just at the yearly trend (59%) however predictions for market activity are strong as St Kilda Beach will continue to attract demand throughout summer. It is expected that St Kilda will grow more aggressively over the next five years than most of Melbourne’s markets.


Windsor a suburb of 7,069 people is located 5km from the city in the south eastern corridor and is often mistaken for Prahran, its neighbour. Over the last 12 months Windsor has fallen by 1.1%. The suburb is well serviced by trams and is only 10 minutes away from the city. Like Elwood, Windsor has a young population with the median being 34 years old. As such the economy benefits from this demographic as shops, bars, cafes and restaurants are aligned on Chapel St, Melbourne’s most famous shopping street which dissects the suburb. Windsor’s economy also features Swinburne University’s Prahran campus and some light manufacturing. Windsor’s property market is quite hot at the moment with a clearance rate of 76%. This figure may indicate why the long term trend of the suburb has been so high and is expected to outperform into the future.


Murrumbeena’s population is 8,592 and is located 13km south-east of Melbourne. Over the last 12 months Murrumbeena units have sky rocketed by 21.3%. The suburb is well serviced by train and bus, and easy access to arterial roads. Murrumbeena is popular with young families and has a median age of 36. The economy here is diverse; consisting of education, cafes, restaurants, hospital, legal and accounting segments. Appealing to a wider market Murrumbeena currently has a clearance rate of 73% and as such the excellent long term trend should persist over the next 5 years.


Mont Albert North, with its 5,087 people is 13km away from the city and adjoins Box Hill North and Balwyn. Over the last 12 months units in this suburb have grown by an astonishing 37.7%. Transport here is predominantly car with easy access to the city via the East Link or a short trip to Mont Albert train station. This is a popular area for families who attribute to the economy mainly through their professional white collared positions both in the area and the city. Mont Albert North is a suburb that prefers private sale so using clearance rates as an indicator does not give a true representation of market sentiment however Murrumbeena’s long term trend is in the double digits which is expected to continue for now.


Williamstown, a coastal western suburb, with its population of 13,203 is located on the inner west of Melbourne on Hobsons Bay. Over the last 12 months Williamstown has grown well by 4.4%. The suburb is based in an aesthetic location and is popular with families and tourists due to the waterfront café precinct at Nelson Place and historic shopping area along Ferguson St. Williamstown’s economy also benefits from shipbuilding with BAE Systems currently commissioned to build 2 landing helicopter dock ships for the Royal Australian Navy. The long term trend for units in Williamstown has been good but the expectation is that we see this suburb as being one of the leaders for growth over the next 5 years.


Albion, a western suburb, has a population of 4337 and is 13km away from Melbourne’s CBD. Over the last 12 months in Albion units have grown by 1.7% in a market where most suburbs have fallen. Albion has train access into the city and a bus network as well however the majority of people travel by car. The demographic here is mostly younger, with a median age of 32, who are blue collar workers. The economy has a good range of industrial and manufacturing companies. The area prefers private sale as their method so clearance rates are not accurate indicators of market sentiment however the long term trend of Albion is in double digits and the strength of this trend has kept the suburb from negative growth this year and perhaps into the future.


Sources: ABS Census 2011, REIV auction map, REIV volume map, Residex, APM, Wikipedia, Google Maps, *************************** , abs.gov.au, treasury.vic.gov.au, majorprojects.vic.gov.au, realestate.com.au, domain.com.au, The Age, The Sun Herald.
 
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Perhaps this thread should be headed what was hot in 2012.

Would be more convincing if they had not mixed Murrumbeena in with Mont Albert North.
 
Thank you Devank and 7smurfs!

Delta, yes, economic forecasts look promising and expectations are growth will be stronger in the above than in other suburbs.


turk, The above report is information collated from 359 of Melbourne's suburbs to conclude these results.

Statistics for 12 month and 10 year growth were taken from Residex and Australian Property Monitors and averaged. These results were then sorted in descending order with two parameters: Long term & short term growth.

The top 25 of each search were then picked. The long term and short term growth both had to meet minimum requirements that put them above Melbourne's short and long term average. Then, economic activity such as population growth, GDP contribution, average earning increments were compared.

The 50 shortlisted suburbs showed 10 overall stand outs, of which both Murrumbeena and Mont Albert North were included.

So, with that said, you're entitled to your opinion and I'm impartial to whether you believe my research or not but it'd be nice if you could explain to the others what is not convincing about Mont Albert North and Murrumbeena. I'm sure you've good reason to back up your opinion.
 
So, with that said, you're entitled to your opinion and I'm impartial to whether you believe my research or not but it'd be nice if you could explain to the others what is not convincing about Mont Albert North and Murrumbeena. I'm sure you've good reason to back up your opinion.
Jake

I don't know whether your research is credible or not, time will tell,
however if you took the time to read the report you posted here the penny may drop.
 
Jake

I don't know whether your research is credible or not, time will tell,
however if you took the time to read the report you posted here the penny may drop.
Oh I see, you were referring to a grammar error. Thank you for pointing that out.
 
Do these happen to be areas you focus on at infolio.com.au?
I deal mainly in the inner South East so yes to Armadale, St Kilda, Elwood and Windsor. Coburg North and Fairfield sometimes. Williamstown, Albion, Murrumbeena and Mont Albert North fall outside of my usual scope.

I can completely assure you that these opinions are unbiased, they are not swayed towards my area of expertise and the information is as accurate as the datahouses who've provided them can be.
 
Hi Jake,

Thanks for taking the time to post this. Whats the go with Toorak, South Yarra, Prahran? If you dont mind.

Thanks
All good suburbs to invest in as far as I'm concerned. South Yarra probably top of that list - I like the little pocket where Rockley Road and Kensington Road is near Como Park
 
You should post this stuff on the other thread on BIS Sharpnel so you can get in to some robust debate rather than spruik it to a few of us.
 
He is not hiding who he is. So I see no problems at all.
Instead of criticising him for posting, why can't we debate about those suburbs?
 
Over the last 12 months Fairfield units have grown by 16.7%.

I for one believe Fairfield is a great area and there are bargains to find. Not sure about that level of growth over the past 12 months though. Would love to see a more indepth analysis.
 
You should post this stuff on the other thread on BIS Sharpnel so you can get in to some robust debate rather than spruik it to a few of us.
Thanks for the suggestion. I didn't see the other thread do you mean this one? http://somersoft.com/forums/showthread.php?t=83887&highlight=shrapnel

I posted this thread under "Where to Buy" because in my opinion these suburbs are the places to buy if someone is looking in Melbourne. As far as Melbourne being flat for 3-5 years, yes I agree that the overall market is soft with only 3 out of 10 suburbs performing. However, that's not the case for all suburbs...

I don't appreciate the term "Spruik"; actually I'm quite offended by your skepticism.

I thought it was a nice sentiment to help fellow somersoftian investors by sharing my research and I expect nothing in return... The research is drawn from credible providers (APM & Residex) and results were concluded in an unbiased method so as far as I'm concerned they're truthful.

I have put a lot of work and effort to get the above results and Australian Property Investor Magazine will be publishing them in January.
 
Over the last 12 months Fairfield units have grown by 16.7%.

I for one believe Fairfield is a great area and there are bargains to find. Not sure about that level of growth over the past 12 months though. Would love to see a more indepth analysis.
I was surprised too! What kind of analysis are you looking for?
 
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