Melbourne’s Bayside and South Eastern suburbs cover a great distance and population of the city. With distinct communities and unique attractions throughout, it’s no wonder they boast some of the city’s highest property values. In this post, I’m going to be providing an overview on what makes Bayside and South Eastern suburbs so in demand and what investors and buyers should consider when looking at this market.
Favoured by investors for many years, Bayside has widespread appeal, particularly for the kind of lifestyle it can offer to families and even to retirees. In an area that spans across 17kms of Port Phillip Bay beachfront and through to touch the South East of the city, values range from high to sometimes stratospheric! An abundance of space, amenities, heritage buildings, parkland and trendy shopping strips make sure of the area’s evergreen appeal.
Think of Brighton, Victoria and you might first think of bright beach boxes, stately grammar schools and wide tree-lined streets.
Just 8km from the CBD, Brighton is a diverse suburb itself and stretches from the North near Elwood and Elsternwick to the South East near Hampton. Known for its long held desirability, Brighton’s desirability doesn’t seem to be slowing down anytime soon.
In Brighton, the median house price for 2016 was $2,310,000. Compared to the same period 5 years prior, the median house sales price for houses increased 36.3% – an annual growth rate of 6.4%. During the same period, rental yield peaked in 2012 at 3.6% and in 2016 was 2.2%.
Low stock levels continue to be a problem for would-be Brighton investors, pushing them to neighbouring Brighton East and Hampton.
Coastal, traditional and family-dominated (61%), Beaumaris is another highly sought-after part of Bayside.
Beaumaris maintains a bit of its quaint village feel, with a relaxed shopping strip at The Concourse, all walkable from the beach and charming Ricketts Point Marine Park.
Median house prices in Beaumaris continued to rise in 2016 to $1,445,000. Since 2012, house sales prices have increased a huge 38.4%. Beaumaris now has an auction clearance rate of 89%.
This property recently sold in Beaumaris for $1,910,000
A short twenty-five-minute drive or train commute to the CBD, Cheltenham is a suburb bordered by Moorabbin and Mentone on the South-Eastern fringe of Bayside. It’s an area that offers an affordable alternative to its coastal neighbours.
In 2016, the median house sales price in Cheltenham was $915,000. This shows a huge increase of 52% over the same period five years ago. Demand for property is growing and stock levels are rapidly decreasing.
With a new train station, due in the suburb to service Southland Shopping Centre, 2017 might still be a good time to find value in the area as it continues to grow.
This property recently sold in Cheltenham for $1,490,000
South Eastern suburbs of Melbourne
If you’re after a true suburban feel with space for your family, home projects or simply to spread out and enjoy more of the outdoors, you’ll want to consider the diverse suburbs across Melbourne’s popular south-eastern spread.
Near Frankston and towards the Mornington Peninsula, Seaford still offers excellent value to young families and people seeking a relaxed coastal lifestyle that’s not too far from the city.
With the Peninsula Link on the map, Seaford is better linked to the city than previously. This part of Melbourne used to be considered the locale of beach holiday-makers and weekend getaways. It is now established as a wonderful place to raise a family or set up a lifestyle that allows for a regular commute.
The large blocks have been sought after by developers and are popular among first home buyers and down sizers. Very much suited to buyers who are looking for a relaxed lifestyle. The amazing hidden beach ensures that Seaford is likely to stay in high demand for many years to come.
A median house in Seaford is now $555,500 with median rent at $360 per week.
This property recently sold in Seaford for $902,000 https://www.realestate.com.au/sold/property-house-vic-seaford-124430614
Chelsea property is in high demand and it’s no wonder why. It offers a relaxed coastal lifestyle while remaining affordable for young buyers, investors and families.
Recent years have seen a building boom across the suburb, with units, townhouses and apartments all adding to the offering of the area and diversifying the demographic.
The median price of a 3-bedroom house in Chelsea in 2016 was $770,000. Chelsea demanded an average of 1417 visits per property last year. That’s over twice the state average!
I think there’s still great value and hidden opportunities to be found in Chelsea and its surrounding suburbs – but it’s important to do your research and get expert advice.
This property recently sold in Chelsea for $860,000
*Figures quotes are obtained from Real Estate Institute of Victoria (REIV) and by RP Data/realestate.com.au