Trio of beachside suburbs mark Melbourne’s top performers

Bonbeach — a suburb located in the City of Kingston — was Melbourne’s top performer, with its median price jumping 32 per cent to $1.175 million,  Domain’s house price report showed.  

It was followed by Patterson Lakes, with a 25 per cent increase to $1.3 million, and Parkdale, whose median price rose 19.5 per cent to $1.5 million during the same period.  

Aside from the appeal of a great lifestyle by having “a beach by the doorstep”, Barry Plant Mentone-Cheltenham sales manager Chris Kavanagh accredited Bonbeach and Parkdale’s strong showing due to the locations’ offering “value for money because of the block sizes”.   

“We are seeing this anywhere in Bayside from Mentone downwards, and the market is active for suburbs close to the water,” he added. 

Mr Kavanagh noted that the median prices of these suburbs continued to grow even as the overall market underwent a correction due to interest rate rises and uncertainty. 

The Domain report showed that house prices in some of the city’s most sought-after suburbs, including in Toorak and Armadale, fell strongly over the same period.

Mr Kavanagh highlighted that demand in Bonbeach and Parkdale was largely driven by buyers who are mostly lifestyle seekers. Shifts in workplace trends, such as more people increasingly working from home and with the commute to the city being easier, also had a hand in driving demand for the lifestyle locations. 

“Many buyers are young families coming across from suburbs closer to the city, such as Carnegie, Bentleigh and from the eastern suburbs like Glen Waverley,” he added.

Access to quality public and private schools is another drawcard to the lifestyle areas, as are train and bus routes complemented by freeways.

“These suburbs have a good mix of transport links, infrastructure, parks and a family-friendly lifestyle. The market outlook is good, and no matter what it’s doing, everyone wants to live by the beach,” Mr Kavanagh said.

He estimated that the agency, which is part of a four-office network in the Bayside area, had observed the number of properties for sale decline by 30 per cent compared with 2021.

“Any quality property will get good interest, and we are seeing 35 groups of people at home inspections, an average of three bidders at auctions and three offers for private sales,” Mr Kavanagh said.

Bonbeach, which covers 2.79 square kilometres and has a population of just 6,910 residents, is also sought after because of its lower density and mix of housing styles. 

“The suburb is very popular and still retains beautiful period homes and modern townhouses, and is near the beach, Patterson River, shops and schools,” Barry Plant Chelsea agent Janine Foy said.

“People love Bonbeach as it is not as busy as nearby suburbs, and it is also not as crowded with new units,” she stated.