Report reveals Melbourne's best suburbs for long-term property price growth

Property values in desirable spots generally double every seven to 10 years, but one Melbourne pocket has tripled.

Over the past 10 years, the median unit price in Altona North has soared 202 per cent to $471,000. 

Altona North is one of 123 metropolitan Melbourne suburbs where prices have more than doubled over the the past decade, according to the Valuer-General’s annual report on what Victorians paid for their properties in 2014. 

And for houses, Balwyn was the best performing suburb for long-term price growth, with its median leaping 169 per cent to $1.75 million over  the past decade. 

The home owners who will be cheering are those like Beryl and Des Jones, who are now selling their Cape Cod-inspired four-bedroom house at 5 Carmel Court after 37 years. 

Beryl Jones said there had been “incredible change” in the type of dwellings in the area.  

“And it’s been accelerating because in the past four to five years, houses have been sold, pulled down and large two-storey houses are put up,” she said.

Advertised as “live in or build new”, their home could now face a similar fate. 

The couple are hoping for a price in the high-$1 million when it goes to auction in August, and then plan to downsize nearby. 

Listing agent Jenny Gillies of Jellis Craig said Balwyn had an aging population and so many people were downsizing to a lower maintenance home as younger families moved in.  

Gillies said the Balwyn High School zone had been “a great driving force” in the area, and the suburb was also well serviced by trams and the Eastern Freeway. 

Meanwhile, houses in Mont Albert North and Middle Park have also outperformed, with their medians jumping 161 per cent and 159 per cent over the period.

Jamie Perrott, 52, and his family bought their waterfront home at 302 Beaconsfield Parade in Middle Park for a nudge over $1 million about 10 years ago.

They are now selling the four-bedroom house, after renovating it “significantly”, with expectations of more than $2.9 million. 

Perrott said many of the older houses in the area were being renovated and gentrified. The beach and waterfront had also “improved dramatically” over the past 10 years. 

“I remember years ago hardly anyone would [use it],” he said.

“Now in the summer there’s kite surfers, rollerbladers, wind surfers, stand-up paddleboarders, it’s way more utilised.” 

Perrott said they hoped to stay in the area and renovate the next house they buy. 

Cayzer Real Estate director Michael Szulc, who has been tasked with selling the home, said the construction of Albert Park College was also keeping families in area. 

“They’re committing to the area for longer, so people are prepared to pay more to know that they’re buying for the long-term,” he said. 

Wakelin Property Advisory director Paul Nugent said more often than not, the proximity of family homes to good education facilities was paramount and that’s what often drives values in areas such as Boroondara and Stonnington.

Over the past 12 months, he said there had been a lift in values in adjacent suburbs as buyers were priced out of the market. 

He said buyers looking in Balwyn and Balwyn North had moved out to Doncaster or Mont Albert North. 

City of Whitehorse mayor Andrew Munroe said Box Hill had been recognised as being one of the busiest metropolitan activity centres outside the CBD.

He said the municipality also had a $7.8 billion local economy generated by 61,000 local jobs and 9000 local businesses.