New million dollar suburbs north of the Yarra are chipping away at Melbourne’s traditional north south divide, as experts declare Fitzroy the next Toorak.
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House price growth in the north has outpaced the south by 9.7 per cent in the past 5 years. It is now more expensive to buy a home in Fitzroy than Windsor and Prahran, according to figures from the Real Estate Institute of Victoria.
Victorian housing market specialist Robert Larocca said the north south rivalry was waning under the weight of wealthier new buyers.
“Because all of a sudden the inner north isn’t the grungy places with the good coffee, it’s a lot trendier now,” the RP Data spokesman said.
“That means people who are attracted to the area because of the culture and feel of the place are having to look further out, around the 10 kilometre mark.”
House price growth in the north has averaged 36.7 per cent in the past five years compared to 27 per cent in the south.
But in the past 12 months, the south has slightly outpaced the north after climbing 10.7 per cent, 1.6 per cent more than the north.
Middle Park was the star performer after surging 26.5 per cent to a median of $1.67 million.
Fitzroy recorded the strongest annual growth in the north with house prices up 20 per cent to a new median of $1.08 million.
Silvia Grande traded in her quarter-acre block for a converted warehouse apartment in Fitzroy six years ago.
The empty nester, 55, decided she would rather play golf on the weekend than slave away in her suburban garden.
Now her car stays in the garage most days, with work and the MCG just a brisk stroll away.
“Do I miss being woken up by my neighbour mowing the lawn? No I don’t,” she joked.
“Whenever you get bored we walk down to the shops, there’s something new that’s opened.
“We’ve seen quite a few restaurants come and go and noticed a lot more apartments going up.”
REIV chief executive Enzo Raimondo said the proximity to the city and development of low to medium density housing were key reasons for the north’s popularity.
“Traditionally, the southern suburbs have had a higher median price over the same period; they have already experienced significant capital growth,” he said.
“It was always going to be the northern suburbs that were going to have some growth because they’re close to the city, but on the other side - all the infrastructure is there.”
Rob Elsom, director of hockingstuart Brunswick, Carlton, North Melbourne and Northcote, said the north was no longer luring only young buyers.
“We’re seeing the older generation, who have got rid of the kids, moving into real estate that was somewhat appealing to 25 year olds,” he said.
Meanwhile prospective buyers who are looking for more affordable suburbs are venturing further out.
“They’re going to areas like Thornbury or even Preston and we’ll be having the same conversations about those suburbs in two or three years' time,” Mr Elsom said.
The latest National Australia Bank quarterly Australian Residential Property Survey has named Carlton, Docklands, North Melbourne, Reservoir and Thornbury as top suburbs that are likely to outperform this year.
