Melbourne's most overvalued postcodes revealed
According to SuburbData's June 2025 analysis, Beaconsfield Upper, Deepdene, Warrandyte South, Pakenham South, Silvan and Portsea were named as the city's most overvalued.
Analysts say desirability isn't in question for the popular areas, but the timing and price are.
SuburbData director Jeremy Sheppard said buyers needed to understand the risk of paying peak prices in overheated pockets.
'It may take a while till you get any growth on your investment in an overvalued suburb,' Mr Sheppard said.
'Usually prices will then level out over a few years but buying at the peak of a fast moving market could even mean, in extreme cases, that prices soon fall.'
Block judge lifts lid on dud reno blowouts
Whitefox chief executive and Block judge Marty Fox said emotion often drove premiums in hot suburbs, and that could sting later.
'You're paying for yesterday's growth,' Mr Fox said.
'If the market stalls, you've got little insulation, and the holding costs don't care about your paper losses.'
However, the head of Gary Peer Real Estate urged buyers not to miss out due to a buzz word, noting that some big price moves were justified when fundamentals change.
'I'm not sure I entirely buy into the term 'overvalued,' Gary Peer said.
'Often, suburbs that appear overvalued have simply caught up to where they should be.'
Mr Peer pointed to recent sales in Murrumbeena closing on $4m, an 'unheard of' sum until recently.
'Some might say that's overvalued, but the suburb has transformed: the skyrail removed traffic bottlenecks, new developments brought cafes and restaurants, schools improved, and the overall amenity lifted dramatically,' Mr Peer said.
'In that context, the price growth makes sense.'
Melbourne's Most Overvalued Suburbs
St Kilda East $1.2m – $348,000 cheaper
Box Hill North $1.4m – $135,000 cheaper
Doreen $788,000 – $49,000 cheaper
Noble Park $794,000 – $42,000 cheaper
Kings Park $682,000 – $39,000 cheaper
St Albans $721,000 – $34,000 cheaper
Deer Park $653,000 – $35,000 cheaper
Officer $756,000 – $32,000 cheaper
Westmeadows $765,000 – $6000 cheaper
Mickleham $714,000 – $2000 cheaper
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ABC News
2 hours ago
- ABC News
Productivity summit ends day two with progress on rules changes to boost housing supply
Rules holding back superannuation funds from investing potential billions of dollars into housing and renewables projects could face a shake up, after broad agreement at Canberra's productivity roundtable that there is a need for change. Super funds are required to meet a "performance benchmark", under laws designed to ensure funds are performing and maintaining the retirement savings of their members. But critics have said the rules around those benchmarks discourage investment in some assets, including a rule that requires stamp duty to be disclosed as a fee in a way that they say discourages housing investment. The government flagged it was seeking to rewrite the benchmark after a 2023 review similarly found it could unintentionally be discouraging investment in some assets. Rebecca Mikula-Wright, who heads the Investor Group on Climate Change, said there had been broad agreement at this week's summit that changing those rules could accelerate housing and renewables investment. "The Your Future Your Super performance benchmark was discussed a lot in the session I was in yesterday, and really around how that is constraining the ability of super funds to invest in higher risk projects they really want to invest into," Ms Mikula-Wright told the ABC. 'The treasurer did indicate he is likely to revisit those reforms." After a day of talks focused on finding agreement on one of the thorniest issues impacting housing and the environment — Australia's "broken" environmental approvals process — Treasurer Jim Chalmers expressed his pleasure at the "real prospect of a useful consensus" emerging on some of the country's key economic challenges. "Day two of the reform roundtable was really dominated by how we can boost housing supply, how we can responsibly reduce and improve regulation and speed up approvals," Mr Chalmers said. "I'm really encouraged by the consensus in the room for economic reform in these areas, and we're enthusiastic about some of the policies that participants put on the table." Ms Mikula-Wright said there had also been good support for a Productivity Commission recommendation to establish a "strike team" that could land faster approvals for key infrastructure projects, particularly around renewables. "We're competing with markets that are getting projects up faster and cheaper, so we have to do the same. Then we can attract more capital and get those projects rolling out," she said. After warnings from Housing Minister Clare O'Neil that red tape was dragging down housing approvals — and leaked Treasury documents indicating the government was considering a pause on the National Construction Code — attendees also agreed such a move should take place. The National Construction Code lays out minimum requirements for buildings on everything from fire exits and accessibility to insulation and capacity for electric vehicle chargers. But while changes to safety standards could continue, attendees discussed possible pauses on "non-essential" rules of the construction code, such as new requirements to lift energy efficiency standards. New South Wales Treasurer Daniel Mookhey said a pause on the code was needed, though the finer details were being worked through. "The pause is something that is where the conversation was concentrated on. In terms of how long it needs to be paused, who would do the review, what's the terms of reference, that work can be pursued," he said, "I think we will have a few more conversations at the roundtable and beyond to sort out those levels of detail." The ABC understands the government hopes to move fast on a pause, and not have discussions drag out for several months. After two successive terms of government failing to find a path through the thicket of reform on Australia's Environmental Protection and Biodiversity Conservation Act, attendees of today's roundtable were cautiously welcoming what appeared to be some progress. The complicated laws govern the environmental approval process for major projects, such as energy and mining projects, as well as housing and other developments where they potentially impact threatened species or significant cultural sites. But a major review of those decades-old laws published in 2020 concluded that they were no longer working for business or the environment — a view that today's roundtable attendees were agreed on. However, attempts under former environment minister Tanya Plibersek to update the laws were abandoned before the federal election — with a key sticking point being a plan to introduce a federal watchdog that could independently monitor EPBC approvals. Mining and other business groups did not support that proposed Environmental Protection Agency. But after extended talks today, they left saying they would be prepared to support an EPA, with a caveat that the final say would rest with the environment minister. There are still devils in the detail, including a desire from environment groups to see the EPA also given final approval powers on projects. But it marks the first significant advancement in EPBC discussions since they stalled last term. Australian Conservation Foundation chief executive, Kelly O'Shanassy, said there was agreement in the room that an EPA was needed but there remained different views on how it should operate. "There is a lot of support for efficient decision making, transparent decision making, accountability — that is not the current process," Ms O'Shanassy said. "You need to have an independent regulator that is held to account for the speed of its decisions and the quality of its decisions." Business Council of Australia chief executive, Bran Black, said a federal EPA should effectively be set-up in the same way as existing state-based authorities. "We take the view that it's really important to have a separation between the entity that is ultimately responsible for compliance and the entity that's ultimately responsible for approvals," Mr Black said. "In an ideal world, we wouldn't need to go down the path of creating multiple bodies at all [but] the government has committed to a new EPA. It's made it very clear, that's a point that it's taken to two elections now." "The question then is: what does this EPA do?" Environment Minister Murray Watt said, however, there was strong support around the table for "stronger" environmental protections and "faster and simpler" project approvals, through a more transparent process for businesses. "These are objectives our government supports, but we will ultimately need support across the parliament for reform. It was therefore very useful for the shadow treasurer, as a roundtable participant, to hear the depth of support for change," Senator Watt said. Opposition Leader Sussan Ley said the Coalition was willing to work constructively with the government to see reforms to the environment laws passed.
ABC News
4 hours ago
- ABC News
The businesses abandoning America over US tariffs
Australian businesses are halting exports to the US, as the Trump administration closes a tax loophole for low-cost goods entering America on August 29.
News.com.au
5 hours ago
- News.com.au
ASX steadies as banks lead recovery after CSL shock
Australia's sharemarket edged higher on Wednesday, bouncing back slightly after a two-day slump driven by CSL's record one-day fall. The S&P/ASX 200 rose 21.8 points, or 0.25 per cent, to 8,918, while the broader All Ordinaries added 3.6 points to 9,177.4. The Australian dollar slipped slightly to 64.7 US cents. Over the past five days, the index has gained 1.03 per cent and sits just 0.5 per cent below its 52-week high. Banks continued to support the market, with all four major lenders climbing. Commonwealth Bank added 0.79 per cent to $172.40, Westpac jumped 2.47 per cent to $38.23, NAB surged 3.68 per cent to $42.03, and ANZ rose 1.95 per cent to $33.41. IG analyst Tony Sycamore said the ASX 200 had performed 'really well'. 'The ASX 200 is insulated because we don't have the concentration of tech stocks that hit the US markets,' Mr Sycamore said. 'One of the reasons why we're seen as a more defensive market is because we've got the banks, and the banks have done well again today.' Seven of the 11 sectors higher. After Tuesday's shock fall of 16.89 per cent in CSL shares, the healthcare giant continued to weigh on the sector, which slipped 1.28 per cent. Other sectors on the decline included information technology (-2.32 per cent), materials (-1.16 per cent), and energy (-1.23 per cent), while consumer discretionary (+1.93 per cent), real estate (+1.80 per cent), and financials (+1.43 per cent) led the winners. 'Elsewhere, we saw some fall in CSL extent today, so there is certainly an exodus which continues from that particular stock, and it does feel like the market's the wrong way around with regards to CSL,' Mr Sycamore said. 'It was certainly a shock yesterday, and in terms of early season bombshells, probably the biggest one I can recall in recent memory.' Top performers on Wednesday included HMC Capital, up 17.74 per cent to $3.85, and Centuria Capital Group, which gained 11.63 per cent to $2.40. Synlait Milk (+8.11 per cent), Service Stream (+7.92 per cent), and Strickland Metals (+7.69 per cent) also posted strong gains. However, some high-profile falls highlighted ongoing volatility. James Hardie plunged 27.83 per cent to $32, while Arafura Rare Earths (-13.64 per cent), Elsight (-13.53 per cent), and Electro Optic Systems (-13.09 per cent) were among the biggest decliners. Mr Sycamore said after recent market jitters and high-profile earnings shocks, investors were seeking safer options. 'The lure of the banks is proving to be appealing,' Mr Sycamore said. 'Given recent uncertainty, investors are moving towards stocks with cheaper valuations. For example, CBA trading at $172 now compared to $192 a couple of months ago makes it look more attractive. 'We're moving into a period where people are going to be more selective and favour cheaper, more defensively valued stocks.' Miners gave back some of Tuesday's gains. BHP, which rallied 1.57 per cent on Monday, retreated slightly in Wednesday's session, reflecting a broader pullback in the sector. 'Big mining stocks had a bad day today, but their valuations aren't expensive by any stretch of the imagination,' Mr Sycamore said. 'We're seeing more stock selection based on value rather than just momentum, which has been driving markets for a while.'
