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AU Old homes, big profits in Melbourne

Property Here - Friday, October 18, 2013

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A home on the market in Oakleigh East.

A home on the market in Oakleigh East.

HOMEOWNERS have pocketed windfalls averaging $300,000-plus from the sale of properties built in the 1970s and '80s around Melbourne's growth ring this year.

New data shows you don't need to own a multi-million dollar home to win big on the property market. Only five of the top 50 most profitable suburbs boasted homes worth more than $1 million.

Suburbs previously not on buyer hot lists such as Oakleigh East, Warrandyte, Narre Warren North, Dingley and Scoresby are among the most profitable in the city.

Research from RP Data, conducted exclusively for the Herald Sun, shows 34 suburbs where every property sold over the past 12 months reaped a profit averaging $312,473 for their vendors. A further 16 suburbs boasted a minimum of 98 per cent of profitable sales.

The biggest lifestyle location winner was Flinders. There, 14 sales over the past 12 months reaped an average $823,000 profit for vendors.

A house on the market on Oakleigh East.

A house on the market in Oakleigh East.

Of the ring suburbs, Oakleigh East scored a huge $601,600 windfall on average for the 10 clever owners who timed their exit from the market to perfection. Bentleigh, with 96 sales boasted average profits of $458,290 for 98 per cent of those who sold. Warrandyte earned its owners $365,266 and Narre Warren North $362,205.

Of the top 50 most profitable performers, only 10 suburbs are less than 15km from the centre of Melbourne.

The biggest winner was blue-ribbon Canterbury where vendors of the 55 homes that sold over the past year scored $887,347 average profit from their sales.

Armadale was second on the inner ring suburbs with an average profit of $715,999, Hawthorn reaped $688,660 and Caulfield scored $631,660.