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AU Savvy buyers push up prices in some Melbourne suburbs

Property Here - Thursday, April 25, 2013

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HOUSE prices in four Melbourne suburbs are sitting at record levels.

Median prices in Yarraville, Northcote, Doncaster and Brighton are now at their peak, new data shows.

Experts believe savvy buyers are pushing up prices as they seek value in suburbs across the city.

And they expect more suburbs to hit record prices as buyer confidence increases, with Richmond tipped as the next big mover.

Real Estate Institute of Victoria spokesman Robert Larocca said many who had been sitting on the sidelines realised it was a good chance to jump into the market.

Brighton's median house price has hit $2 million for the first time, up from $1.547 million this time last year.

Mr Larocca said that had been driven by "well-off buyers who know that until now they have been getting a bargain''.

"Doncaster, Northcote and Yarraville have historically been desirable suburbs and, given the family-type housing generally available, it's no surprise to see improved demand now,'' he said.

"I think buyers have worked out they probably won't get the opportunity to buy into these suburbs at below peak prices again.''

Melbourne's median house price is now $561,500, up $27,500 in the first three months of the year.

REIV figures show Yarraville's median house price is now $682,500. Ten years ago it was just $316,000.

Northcote's median rose from $421,000 a decade ago to $885,000 in the March quarter. In Doncaster it was $400,000, compared with $830,000 today.

Mr Larocca said Northcote was popular with professionals wanting to be near the city and Doncaster's larger blocks and houses suited families.

Barry Plant Yarraville's Chris Gotzilianis said young professional couples and families were buying into the suburb, which is 8km from the CBD.

"A lot of people from outside the area are looking for a first home,'' he said.

First-home buyer Vanessa Phillips will get the keys to her Yarraville villa next week. She said she chose the suburb for its village feel.

"It is 15 or 20 minutes to the city,'' she said.

Elite Buyer Advocates' Kim Easterbrook is tipping Richmond as the next suburb to hit its peak. She said Melbourne was in a different market now compared with at the end of last year.

?Buyers are now understanding that the 'so-called' bubble is not going to burst,'' she said.

2013 $2,000,000 $885,000 $830,000 $682,500
2012 $1,547,500 $830,250 $741,250 $576,100
2011 $1,545,000 $820,000 $780,888 $600,000
2010 $1,977,500 $841,000 $802,250 $606,500
2009 $1,402,500 $607,500 $590,000 $512,500
2008 $1,675,000 $677,500 $685,000 $562,500
2007 $1,437,000 $532,500 $530,000 $440,000
2006 $1,137,500 $470,000 $431,000 $381,250
2005 $965,000 $465,000 $408,000 $322,500
2004 $1,110,000 $412,500 $424,000 $330,000
2003 $825,000 $421,000 $400,500 $316,000
SOURCE: REIV. All median prices for fi rst quarter of each year.

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