Melbourne’s home buyer hotspots 2022

Real Estate Institute of Victoria (REIV) president Richard Simpson has broken down the current home buying hotpots in and around Melbourne, based on the latest REIV sales data.

Richard says the Melbourne housing market peaked around November 2021 coming out of the COVID-19 lockdowns, with price growth continuing but flattening slightly in early 2022 across Melbourne.

House prices have also risen further from the metropolitan area as city-dwellers relocate to the regions in search of more affordable homes.

“We’ve seen a trend where people have moved away from Melbourne into the regions, but a lot of them are still commuting two or three days a week from their new regional base while they work from home the rest of the week,” Richard says.

Let's take a look at Richard's top Melbourne suburbs.

Melbourne’s top suburbs for home buyers

Werribee

With both the second-cheapest and fastest-growing house prices in the city of Wyndham, Werribee is a suburb to watch. It has the most affordable units in all metropolitan Melbourne, based on median price.

“There’s also a recent push by governments to make Werribee a satellite city,” Richard says, which further adds to its appeal.

The median house price in Werribee in March 2022 was $620,000, a 18.7% increase year on year. The median unit price was $375,000, a 7.5% increase on the same period last year.

Number of auctions in this suburb increased by almost 80% year on year.

Broadmeadows

The Hume Central project currently under way is set to make Broadmeadows the new centre of activity for Melbourne’s North.

The suburb also boasts proximity to nearby airports Essendon Fields and Melbourne Airport, as well as great public transport access.

The median house price in Broadmeadows was $623,500 in March 2022, a 9.9% increase compared to March 2021, and median unit prices had grown 3.1% year on year to $481,000. Auction sales volumes also increased by 57%.

Frankston North

Richard says houses in Frankston North are selling quickly, with average days on the market dropping to 22 days for private sales – well below the 37-day median for metropolitan Melbourne.

With its many drawcards, it’s not hard to see why.

“Proximity to the peninsula, to the beach, access to public transport, access to shopping and affordability has seen this become one of the hotspot suburbs,” Richard says.

The median house price in Frankston North in March 2022 was $636,050, making this suburb the most affordable in the Frankston area. House prices also saw a massive 28% growth year on year, the greatest growth in the area. Auction sales volumes increased by 73% from last year.

Wollert

Neighbouring Craigieburn, Wollert is an up-and-coming suburb that is seeing houses snapped up increasingly quickly, with selling times falling from 54 to 30 days year on year.

“It’s mostly new estates up there,” Richard says.

“It’s close to the Epping railway and there’s a new railway line to South Morang."

Richard says Wollert has one of the highest projected population increases in the next 20 year in Victoria, according to the Victoria in Future report.

Median house prices in Wollert grew 20% to 740,000 in the year to March 2022 – the highest annual growth rates for house prices in the area.

Despite unit prices increasing by 12% to $455,000, Wollert remained the second most affordable suburb for units in the City of Whittlesea.

Auction sales numbers in the suburb have increased by about 81% since last year.

Moonee Ponds

Houses in Moonee Ponds are on the pricey side, but Richard says this is a great suburb to watch for apartments and units.

Selling time for units in Moonee Ponds has dropped by 11 days to 38 days in March 22 for private sales, so this area is in high demand, but new developments are presenting great opportunities for home buyers in this coveted area only 7km from the Melbourne CBD.

“We’ve seen a lot of apartment development and you can get a median unit price there of $562,500, and it’s had the second strongest annual price growth for units in the city of Moonee Valley at 9.7%,” he says.

“It’s got a shopping centre, very good public transport with trams and trains, and we think it will be one of the next spots that gets gentrified."​

Home buying tips

For any home buying hopefuls feeling the allure of the above hotspots, Richard has a few additional tips.

Do your research

Research the property market to find out the selling prices of the types of homes in the area you're looking for.

Have your finance pre-approved

Pre-approval, or conditional approval, gives you a clearer idea of what you can afford and puts you in a prime position to snap up the right home when it comes along.

Get onboard the auction train

Richard suggests attending as many auctions as you can to get a feel for the market and how auction sales work. If you’re unsure how to tackle auctions, you can always seek assistance from a qualified buyer’s agent.

Don’t wait for the perfect property

“A lot of people go out there and search for the absolute perfect property for them, and it just doesn’t exist,” Richard says.

“You will have to make some concessions, otherwise you’ll never buy anything.

“If you see a property that mostly fits your bill, then I would encourage you to try and buy it. Don't fall into the trap of putting off buying thinking that prices are going to fall and you can get something cheaper somewhere else because you just may not ever find it."

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The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.