Melbourne families flood Frankston and Sunshine as Melbourne's sub-$1m homes rapidly disappear
Melbourne homes under $1m could be set for a mini-boom, with new data showing families are rushing to secure properties before competition explodes.
Just 856 homes are set to go under the hammer this week, including fewer than 300 priced under $1m, but auction volumes will surge to 1270 next week and more than 1400 the week after — a 29 per cent rise on this time last year.
PropTrack figures show Melbourne listings fell 13 per cent in April, driven by school holidays, long weekends and the federal election.
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But the pullback has left fewer homes on offer, especially in the family-friendly, sub-$1m price range.
PropTrack senior economist Anne Flaherty said buyers chasing affordable homes were being squeezed into a shrinking pool.
'Demand is rising under $1m, but the number of suitable properties is falling,' Ms Flaherty said.
'And if we get a rate cut next week, that's only going to supercharge the competition.'
She said family-sized homes — especially those with three or more bedrooms — were vanishing quickly.
'There's now a much higher concentration of buyers in that price bracket,' she said.
Prominent buyers' advocate Cate Bakos said families were flooding into Frankston, Thomastown and Sunshine, chasing land, lifestyle and school zones.
'Places like Frankston won't stay under $1m for long,' Ms Bakos said.
'They're the last affordable pockets close to infrastructure, lifestyle and schools. And we're already seeing investor activity pick up again.'
MR Advocacy director Madeleine Roberts said Frankston homes had jumped more than $200,000 since November, and demand was rising fast.
'You're seeing buyers who were looking in Cheltenham or Bentleigh now chasing homes in Frankston — because that's where the space is,' she said.
'But there's not enough homes for all of them.
'We're seeing 10, 15, even 20 families chasing the same property if it's well-priced and well located.'
She said many families were shocked by how strict school zones had become.
'They assume they'll have more flexibility, but if a school's in demand, you need to be in-zone — there's no way around it.'
Ms Flaherty said signs of a new wave of buyer urgency were already emerging.
'There's a definite sense of FOMO building,' she said.
'Melbourne's typical house price is now below Brisbane's, and only slightly above Perth's.
'Investors are taking notice — including those from interstate.'
She also flagged the outer northeast as an area to watch.
'There are still a number of suburbs there with house prices under $1m, great road and train links — and once the North East Link opens, connectivity will only improve.'
Suburbs with the most auctions this week include Craigieburn, with 16, Glen Waverley, 15, and Reservoir, 14.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
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