Want to know the Melbourne suburbs where house prices are falling in 2023? We’ve found 10 of them.
In recent years, the Melbourne property market has seen significant fluctuations. While some suburbs witnessed skyrocketing prices, others experienced a dip.
Ranked from largest decline to smallest, we highlight Melbourne suburbs where house prices fell this year.
Discover why these suburbs experienced a downturn and why this analysis might be of interest to potential home buyers or investors.
Middle Park: Melbourne’s Dramatic Dip
- Price fall in last 12 months: 25.7%
- Median house price: $2,405,000
Middle Park remains one of Melbourne’s gems, nestled between the city and the beach. Its historic streetscape and close proximity to some of Melbourne’s best parks and eateries make it a favorite among residents.
The significant price dip, while surprising to some, may offer potential buyers an attractive entry point into this prized locale.
Check out real estate for sale in Middle Park VIC.
- Price fall in last 12 months: 13.5%
- Median house price: $1,470,000
St Kilda’s bohemian spirit, combined with its beachside allure, makes it a unique spot in Melbourne.
Renowned for its bustling nightlife, music venues, and iconic Luna Park, its price decline might be a golden window for those wanting a vibrant urban life by the sea.
Check out real estate for sale in St Kilda VIC.
- Price fall in last 12 months: 13.2%
- Median house price: $1,350,000
Burnley boasts a harmonious blend of peaceful streets and green spaces, yet it’s a stone’s throw from Melbourne’s bustling CBD. Its recent price retraction presents an opportunity for those seeking a balanced urban-suburban lifestyle.
- Price fall in last 12 months: 10.3%
- Median house price: $960,000
Nestled in the foothills of the Dandenong Ranges, Ferny Creek offers lush greenery, serene landscapes, and tight-knit community vibes. The recent dip in house prices could be enticing for those wanting a tranquil retreat without venturing too far from city amenities.
Check out real estate for sale in Ferny Creek VIC.
- Price fall in last 12 months: 9.7%
- Median house price: $1,986,000
Characterized by its sprawling green spaces and picturesque woodlands, Park Orchards is a haven for those wanting a mix of rustic charm and modern conveniences.
Its current property climate presents a potential opportunity for families seeking spacious surrounds.
Check out real estate for sale in Park Orchard VIC.
- Price fall in last 12 months: 9.6%
- Median house price: $942,500
Kallista, with its vibrant arts scene and natural beauty, attracts both creatives and nature enthusiasts alike. Its recent price shifts may well be a boon for individuals seeking a community that nurtures both soul and spirit.
Check out real estate for sale in Kallista VIC.
- Price fall in last 12 months: 9.4%
- Median house price: $2,161,500
South Yarra, synonymous with style and sophistication, offers residents a taste of luxury living. With chic boutiques, upscale restaurants, and its recent price decrease, it remains a hotspot for the urban elite seeking value.
Check out real estate for sale in South Yarra VIC.
- Price fall in last 12 months: 5.3%
- Median house price: $2,345,000
Albert Park is revered for its historic buildings, serene lake, and prestigious schools. With property prices taking a dip, it’s an opportune time for those looking for a blend of heritage and modern living.
- Price fall in last 12 months: 4.2%
- Median house price: $1,700,000
Prahran’s eclectic mix of cafes, bars, and vintage shops make it a trendy hub for the young and young-at-heart. The recent softening in house prices adds another layer of attraction to this ever-evolving suburb.
Check out real estate for sale in Prahran VIC.
- Price fall in last 12 months: 2.5%
- Median house price: $1,420,000
Richmond, with its rich multicultural history and vibrant dining scene, remains a favorite among Melbournians. As house prices show a modest decline, it might just be the right time to invest in this urban gem.
Check out real estate for sale in Richmond VIC.
Why are Melbourne’s House Prices Declining?
Melbourne, like many global cities, has seen its housing market ebb and flow. Factors like interest rate hikes, economic policies, and global events have influenced Melbourne house prices.
How Does Melbourne Compare to Other Capital Cities like Sydney?
While Melbourne saw notable price falls in some suburbs, Sydney suburbs also experienced similar trends. Brisbane, on the other hand, remained more stable, showing that each city’s property market responds uniquely to broader influences.
Which Melbourne Suburbs Witnessed the Most Significant Drops in 2023?
Middle Park led the pack with a staggering 25.7% decrease. This was closely followed by suburbs like St Kilda and Burnley, which saw house prices fall by 13.5% and 13.2%, respectively.
What Does the Median House Price Tell Us?
The median house price gives us a midpoint. For instance, Ferny Creek’s median house price stands at $960,000, despite a 10.3% decline, indicating that while prices might be dropping, these areas might still be in high demand.
How Did the Property Market in Eastern Suburbs Fare?
Notably, eastern suburbs displayed mixed results. While some showed resilience, others witnessed price dips, highlighting the varied nature of Melbourne’s property market.
How Has the Housing Market Evolved in 2023?
Since the beginning of 2023, there have been signs of a recovery in some suburbs, while others continue to waver, indicating that potential buyers should keep a close watch.
Are Rising Interest Rates Impacting Melbourne House Prices?
Absolutely. Interest rate hikes have historically affected house values, and this year was no exception. Many suburbs sensitive to the rising rate environment felt the pinch.
What’s the Scenario for First Home Buyers?
For first home buyers, declining prices in certain suburbs can be a golden opportunity. However, it’s essential to consider factors like interest rates and long-term growth potential.
Do Inner-city Suburbs Tend to Have Bigger Price Falls?
While one might assume inner-city suburbs would be immune to significant price falls, this year proved that even these sought-after suburbs can experience downturns.
What Predictions Can We Make for the Melbourne Property Market in the Coming Months?
The Melbourne market remains unpredictable. However, experts believe that with the right strategies, potential buyers and investors can find value, even in a fluctuating market.
By staying informed and understanding the factors driving price changes in Melbourne’s suburbs, one can make informed decisions in the property market.