Melbourne's most in-demand suburbs for home sales

News.com.au

5 days ago

A Melbourne CBD apartment was sold every four hours in the past year, as owners and investors cashed out of the city in their thousands.
PropTrack data has revealed the wider capital is the nation's busiest home sales market, with eight of the 10 highest-selling suburbs located in the metropolitan area.
And while Melbourne's CBD leads the way with more than 2200 homes sold, Tarneit on the city's western fringe was the second most sold suburb in the nation with 1602 owners moving on in the past financial year, more than four a day, as first-home buyers and interstate investors swarm the suburb.
House sells $111k over reserve at 10-bidder auction
Other big sales numbers are coming through in Point Cook, Pakenham, Craigieburn and Werribee.
There's also more than 60 suburbs across the city that notched a sale a day for the past year, with many of the top selling areas linked to an investor exodus sparked by high interest rates and raised land tax obligations for landlords.
But as old investors retreat, new ones are swooping in, with experts reporting fresh interest from interstate buyers and cashed-up house hunters descending on growth corridors where affordable homes are vanishing fast.
PropTrack senior economist Anne Flaherty said there is still a flow of local investors exiting Melbourne but data suggests there has been an uptick in demand.
'Melbourne's median home price is now lower than Sydney, Brisbane, Perth and Adelaide, so investors and buyers from other states are starting to view it as a value play,' Ms Flaherty said.
'One of the biggest pressures on local landlords had been Victoria's mounting holding costs, including a sharp increase to land tax.
'The reduction in the land tax threshold has been a major factor.
'On top of that, rising valuations and compliance costs have pushed the overall cost of owning an investment property higher.'
Ms Flaherty said many Melbourne apartments are now selling below replacement cost and are poised for a recovery as population growth, particularly from international migration, fuels demand in the inner city.
Mortgage Choice Cheltenham broker Rhys Elmi said loan activity was surging across the state, with a record number of pre-approvals this month alone.
'This month has been our biggest ever for loan submissions,' Mr Elmi said.
'A lot of buyers are maxing out that $800,000 cap under the first home guarantee scheme, and from January 2026 it increases to $950,000, which will bring even more people in.'
Mr Elmi said couples were leading the charge in the sub-$1m market, particularly in hotspots like Frankston.
'People are still trying to buy below the list price, but in areas like Frankston, they're selling well above,' he said.
'The ones who meet the market are getting in.'
'Would-be buyers need to speak to a broker early and not rush to pay down debts like HECS or car loans before getting personalised advice.'
Arin Russell Property director and buyers agent Arin Russell said affordability remained Melbourne's biggest drawcard, especially for interstate investors targeting growth corridors in the north and west.
'Melbourne has pulled back more than other capitals, and a lot of investors are taking advantage of that,' Mr Russell said.
'Interstate buyers are active, while some locals are still sitting on the fence.'
Mr Russell said while holding costs had increased, long-term growth potential still made Victoria attractive.
'Serious investors take a national view, they're not deterred by costs if the long-term capital growth is there,' he said.
'Holding costs are high, but so are the opportunities.'
OpenCorp chief executive Cam McLellan said his clients were doubling down on the value.
'Yes, the state government has made it tougher,' Mr McLellan said.
'But smart investors don't chase perfect conditions, they adapt.
'Melbourne's population is booming, rental demand is skyrocketing, and supply is tight.
'That's the trifecta for capital growth.'
Mr McLeallan said interstate investors were acting decisively while Victorian buyers were 'paralysed by headlines.'
'It's not about postcodes it's about perspective,' he said.
'Locals are looking at properties that have already risen in price and thinking the opportunity's gone.
'Interstaters are looking at the same asset and saying, 'There's still gas in the tank.''
The OpenCorp chief executive warned high-rise CBD apartments were underperforming due to their 'endless vertical supply', high fees and capped capital growth potential.
'We've never recommended high-rise apartments. They fail the fundamentals test, tight yields, high body corp fees, and limited capital growth,' Mr McLellan said.
'Smart investors are reallocating their capital into tightly held metro growth corridors with infrastructure pipelines, land scarcity, and strong family demand.
'That's where the next wave of growth is coming.'
Melbourne's Top 20 Suburbs By Sales Volumes
Suburb Property Type Number Sold 12 months
Melbourne CBD Units 2214
Tarneit Houses 1547
Point Cook Houses 1183
Pakenham Houses 990
Craigieburn Houses 990
Werribee Houses 985
Southbank Units 911
Sunbury Houses 883
Clyde North Houses 880
Truganina Houses 812
Berwick Houses 810
Wollert Houses 780
Mickleham Houses 764
South Yarra Units 750
St Kilda Units 610
Frankston Houses 578
Hoppers Crossing Houses 561
Docklands Units 559
Wyndham Vale Houses 532