Melbourne's Hot Suburbs

[Guest The Pom Queen]

Melbourne’s “hottest” suburb is an ever-changing title. Right now, it’s Fitzroy – a suburb that has reached the pinnacle of price and cachet for those who do not want (or cannot afford) to buy in the inner-east.

Fitzroy (or as agents now refer to it, Fitz-royalty), has become the yardstick for the huge change occurring in Melbourne’s suburbs and property market. It was the one that started the creep of cool into suburbia and opened up the inner-north as a viable and highly desirable place to live.

But what’s next? Fitzroy has well and truly taken off, and its neighbours Carlton and Collingwood (a suburb that 20 years ago was perceived by many as an unthinkable place to live) have quickly followed suit.

Looking at these changes, one can conclude that a suburb becomes hot property when it has a diversity of residents and housing typologies – a phenomenon that’s occurring across the city’s inner-west, inner-north and outer-east.

The rising median house price of Preston ($615,000 in 2014, $853,000 today), nine kilometres north of the central business district, is believed to be result of the suburb’s shifting demographic. Here, young people and families priced out of nearby areas are now joining the suburb’s longstanding Greek and Italian residents.

Partner at Nelson Alexander Northcote, Luke Sacco, has observed this shift firsthand throughout his 15 years selling in the north. He says the extension of businesses along High Street (which runs directly through the centre of the suburb) in particular has brought a new vibrancy to Preston.

“Shops that were closed are now cafes, bookshops and barbers, and the more industrial businesses have moved out of Preston to Reservoir where the land is cheaper,” Sacco says.

He says recent buyers to the area have helped develop a greater sense of community atmosphere.

“Young families are moving in for the same reason why it became first populated in the ’50s and ’60s – because it’s affordable. It’s a real mixture and more of a community now,” Sacco says.

Cafes, bookshops and barbers are bringing a new vibrancy to Preston. Photo: Supplied

In the western suburbs, Footscray (five kilometres from the CBD) is leading the way in terms of cultural and demographic changes, with a variety of housing options available.

In his 24 years working in the inner-west, director of Jas Stephens, Craig Stephens, says the price growth in the area over the past three to five years has been most significant. The median house price is now $757,000, up from $550,000 in 2014.

“We’re now seeing homes breaking the $1 million mark, with renovated homes going for up to $2 million,” Stephens says.

Footscray is leading the way in terms of cultural and demographic changes. Photo: Pat Scala

“There’s a massive turnover of properties in the west – every seven years compared to every 21 years in the eastern suburbs … It’s because we have period style homes that are affordable and allow people to get into the property market for the first time.

“It’s very cosmopolitan and multinational, with a variety of people, cultures, nationalities, cafes, neighbours and diversity in the way people renovate their homes.”

Impetuses for the shifting demographic have been the development of offices in Docklands, which is just a short bicycle commute away, the upgrade of West Footscray train station, and the increase in arts and crafts street festivals.

For buyers seeking a similar place to call home, Stephens point to Sunshine, Maidstone, West Footscray and Kingsville.

“People tend to gravitate to Williamstown and Newport, or Seddon and Yarraville, and are then disgruntled with what they can afford. People come here and they are pleasantly surprised by the value for money, and still with a good quality lifestyle,” Stephens says.

Those loyal to the east and south-eastern suburbs are being increasingly drawn to Ringwood (23 kilometres east of the CBD) and Frankston (41 kilometres south-east of the CBD).

The boom in house prices at Frankston can be likened to a fairytale. 

Director of Hocking Stuart Frankston, Aaron Froling, likens the Frankston boom over the last four months to a fairy tale. The suburb’s current median house price is $477,000, up from $345,000 in 2014.

“I sold properties last year thinking the market had peaked, but if I sold them today I’d be $300,000 better off [collectively in selling prices],” Froling says.

“People who wouldn’t spit on Frankston six months ago are now flocking here. It’s changing overnight.”

In the last eight weeks alone, Froling estimates some properties have gone up $100,000 in capital growth.

“When we used to meet with vendors they would always think their house was worth more than it was, but now they’re undervaluing them, which is why a good agent is essential… It’s never happened in my entire career,” he says.

Froling says the lifestyle of Frankston has always been a drawcard for buyers, the only thing standing in the way was its outdated negative reputation.

“The only thing holding us back was the stigma, and now that’s being smashed,” he says.

“I’m aware we’re not in isolation, the whole market is booming, but when you consider the infrastructure of EastLink and Peninsula Link, and that we’re on the beach, it’s a no brainer.”

[Guest The Pom Queen]

A few years back Frankston was one of the last places to have houses for around $280,000 everyone said it was worth investing in but many people let the reputation of Frankston past put them off. Even the houses in Frankston North and the Pines Estate start at $450,000 a few years back you wouldn't have been able to give them away.

[starlight7]

Yes things do change a lot.  Guess it depends who moves in/out of the area being they are often locals who do these crimes. 

[Lambethlad]

On ‎27‎/‎05‎/‎2017 at 23:51, The Pom Queen said:

A few years back Frankston was one of the last places to have houses for around $280,000 everyone said it was worth investing in but many people let the reputation of Frankston past put them off. Even the houses in Frankston North and the Pines Estate start at $450,000 a few years back you wouldn't have been able to give them away.

Yeah Frankston has gone crazy. 25 years ago I bought an ugly 1950's asbestos sheet clad shack on a large block for $83,000. I never did any improvements and sold it two months ago for $630,000. At the time I bought it I could have bought any number of houses in Frankston North for $40,000 - now there's nothing under $400,000 and despite its bad reputation caused by a minority of low-lifes who live there, it is now the fastest selling suburb in Melbourne.

[Johndoe]

1 hour ago, Lambethlad said:

Yeah Frankston has gone crazy. 25 years ago I bought an ugly 1950's asbestos sheet clad shack on a large block for $83,000. I never did any improvements and sold it two months ago for $630,000. At the time I bought it I could have bought any number of houses in Frankston North for $40,000 - now there's nothing under $400,000 and despite its bad reputation caused by a minority of low-lifes who live there, it is now the fastest selling suburb in Melbourne.

Pity you won't get a chance to enjoy your profit due to asbestosis ;-) Frankston was a pretty nice place 50 yrs ago (apparently) . My ex was born at the Naval base there and despite her mother being an officer class snob of the highest order, she always said that she would like to retire there.............luckily, she died 15 years ago in the UK and never got to see what it had become :-)

[Guest The Pom Queen]

4 minutes ago, Johndoe said:

Pity you won't get a chance to enjoy your profit due to asbestosis ;-) Frankston was a pretty nice place 50 yrs ago (apparently) . My ex was born at the Naval base there and despite her mother being an officer class snob of the highest order, she always said that she would like to retire there.............luckily, she died 15 years ago in the UK and never got to see what it had become :-)

I do t think there is a naval base there Kev unless it was many many years ago. The only one I know of on the Peninsula is Cerberus. A lovely area and base and it hasn't ever lost that. Frankston was a different kettle of fish from the stories I've heard and is only, in the last 10 years starting to improve.

[Johndoe]

11 minutes ago, The Pom Queen said:

I do t think there is a naval base there Kev unless it was many many years ago. The only one I know of on the Peninsula is Cerberus. A lovely area and base and it hasn't ever lost that. Frankston was a different kettle of fish from the stories I've heard and is only, in the last 10 years starting to improve.

Yes, her father was an British officer exchange with an Australian officer at Cerberus. He actually brought over the (I think it is) a minesweeper given to Oz now in the maritime museum in Brizzy subsequently renamed the Diamantina. Her birth cert showed Frankston but if the peninsula where the naval base was located is lovely, as you say, I still wouldn't understand her wanting to retire there as she lived in a small holding above the cliffs looking down on Looe harbour in Cornwall..................some folk are never satisfied i guess

[Guest The Pom Queen]

9 minutes ago, Johndoe said:

Yes, her father was an British officer exchange with an Australian officer at Cerberus. He actually brought over the (I think it is) a minesweeper given to Oz now in the maritime museum in Brizzy subsequently renamed the Diamantina. Her birth cert showed Frankston but if the peninsula where the naval base was located is lovely, as you say, I still wouldn't understand her wanting to retire there as she lived in a small holding above the cliffs looking down on Looe harbour in Cornwall..................some folk are never satisfied i guess

She would have probably been born in Frankston because that's where the hospital is. The base is at Crib Point around 30km away. Oh Kev it is beautiful down there it really is and I bet years ago it was even nicer. My eldest spent a bit of time at Cerberus and the base is wonderful. I,will see if @Cerberus1 can find some photos from when we were there, we must have some. I bet that's why she moved where she did because it reminded her a lot of down there. I haven't been to Devon but from how people describe it I can imagine them being similar in a few ways