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.'
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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
Source: SuburbData, June 2025, suburbs ranked using a blend of demand, supply, and price gap metrics compared with neighbouring areas.
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Melbourne buyers chasing outer and prestige postcodes are being warned to tread carefully, with new research flagging suburbs where prices are at risk of flatlining. 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.' RELATED: Experts say this suburb is better than yours 'F**king nice house' goes viral 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 Source: SuburbData, June 2025, suburbs ranked using a blend of demand, supply, and price gap metrics compared with neighbouring areas. MORE: Bold French move puts $15m+ price on Melb home Crazy things stars of The Block do for publicity Melbourne's most expensive shop sitting empty
