The performance of Melbourne’s southern suburb this spring shows the the rich are getting richer.
Nine of the ten best performing postcodes had annual median house growth of more than 10 per cent, with the best performer, Toorak, increasing by an astounding 33.6pc.
Those aspiring to get there need to have found an extra $560,000 since last year; the median house price is now $2,230,500, almost double that of the city’s next priciest suburb (Brighton).
Business is said to be driving the blue ribbon blowout – a thriving economy seeing higher salaries and pay bonuses, and strong share market returns, according to agents.
“With record profits and a booming stock market, (returns from shares) could be even more than their base salary,” Angie Zigomanis, senior analyst with researcher and forecaster BIS Shrapnel said.
Buyers at the top end are also more confident about their employment prospects and are not as concerned about the price they pay for their dwelling, the executive added.
Prahran and South Yarra were the best performing inner city precincts
Bayside suburbs all the way to Parkdale also largely performed solidly.
“Parkdale is like a Glen Waverley by the sea,” Bernard Salt, consultant with KPMG and author of the book The Big Shift, said.
“It may have been ho-hum 30 years ago but the suburb has been waiting for a surge in middle class wealth to overspill from wealthy enclaves such as Black Rock and Sandringham,” he added.
It could be argued overspilling wealth from Brighton is contributing to both Hampton and Beaumaris being assessed as the best improving southern suburbs this year.
“As prices in suburbs closer to town become increasingly unaffordable, purchasers move out to the next affordable suburbs.” Mr Zigomanis said