Victoria’s top performing suburbs in 2023

According to REIV’s data for the quarter ending 31 December 2023, Frankston South recorded some of the highest quarterly growth of the state, with the median house price climbing 39.5 per cent to $1,420,000 in the final three months of the year.

In the Yarra Ranges, Lilydale ($1,025,000) was one of several suburbs to enter the million-dollar club, recording 20.6 per cent growth to achieve the milestone for the first time. Ringwood North houses increased 11.5 per cent quarterly to $1,388,000, while Forest Hill saw 10.4 per cent growth with a median house price of $1,325,000.

The top performer, however, was Fitzroy North, which reported an astounding 44.2 per cent quarterly increase for houses to $2,112,750, which is an annual increase of 5.1 per cent. This represents a new milestone for the suburb, which crossed the $2 million median mark for the first time at the end of 2023.

These suburbs vastly outperformed the trend in metro Melbourne overall, which saw a slight decline in median prices for houses by 2.2 per cent to $909,000.

Zooming out to a 12-month view, the eastern suburbs also came out on top for house price growth, with South Yarra climbing 13.7 per cent to $2,388,000, Glen Waverley house prices increasing 9.4 per cent to $1,765,000 and Forest Hill jumping 9.2 per cent to $1,325,000.

Units, too, performed well in many eastern markets, with Wantirna South climbing 37.3 per cent in the last quarter to $700,000, while Templestowe climbed 27.5 per cent to $880,000. This is compared to the greater city’s average growth of 0.1 per cent during the quarter to put average prices at $632,500.

President of the REIV, Jacob Craine, described these suburbs as “corridors to watch in 2024, with widespread residential development underway to accommodate growth including the delivery of in-demand higher density properties”.

Meanwhile in the state’s regional areas, the median house price rose 1.7 per cent to $615,500 in the fourth quarter, while units held steady at $416,000, representing a slight decline of 0.2 per cent.

The areas of Greater Bendigo and Mildura proved to have the most power for price growth across the year, with the highest number of towns that saw prices increase – Bendigo with four and Mildura with three. But it was Kyabram, in north central Victoria, that led the regional growth with a 19 per cent annual median house price increase to $475,000.

In Mr Craine’s eyes, this data reflects a more balanced real estate market, which will lead to a healthier market with opportunities for buyers and sellers as 2024 progresses.

Returning stability created a balanced real estate market for both vendors and buyers in 2023, with 2024 set to deliver greater opportunities as interest rates stabilise.

“Notwithstanding the subdued quarter we saw at the end of 2023 and prevailing conditions including higher interest rates and shorter supply, 2023 delivered much-needed stability for Victoria’s property market,” he said.

“It’s created plenty of attractive opportunities for buyers and vendors alike across metro Melbourne and regional Victoria, and weekly transaction activity is holding strong. As the 2024 market reactivates following the holiday period, Victorians can feel confident to transact,” Mr Craine added.