MELBOURNE'S UNSTOPPABLE GROWTH

In 2020, Melbourne’s property market defied expectations, with select suburbs witnessing remarkable growth amid changing economic conditions. Among the standout performers were Watsonia North and North Warrandyte, two suburbs identified by SuburbGrowth.com.au as having some of the highest price appreciation in the country. Ranked 13th and 14th nationally by the Select Residential Property Research Group (SRP), both areas were projected to rise 6.8% in value over the year.

For Watsonia North, this meant a jump from a median home price of $733,000 to an estimated $783,000, while North Warrandyte saw an even steeper climb, from $903,000 to $965,000. This surge wasn’t just speculation—it was backed by strong demand, low supply, and the undeniable value these locations offered compared to neighboring suburbs.

According to Chris Chapman, director of Jellis Craig Eltham, North Warrandyte’s appeal lay in its undervaluation relative to nearby suburbs. “It’s an area that has been overlooked for years, but with homebuyers seeking better value, we’re seeing a shift. I wouldn’t be surprised if median prices surpassed $1 million before the year ends,” he predicted.

Watsonia North wasn’t alone in experiencing a surge. Other Victorian suburbs such as Dingley Village, South Melbourne, and Balaclava also made the top five list for projected growth, each expecting a 6.7% price increase.

At the national level, St Leonards in Launceston, Tasmania led the charts with a 7.5% growth forecast, driven by affordability and strong demand. With a median price of just $269,000, the suburb was a hotspot for buyers looking for both residential and semi-rural living options.

The driving forces behind this boom were clear: low vacancy rates, high auction clearance rates, and an increasing ripple effect as buyers pushed into undervalued neighborhoods. These factors combined to create a property surge that made 2020 a defining year for Melbourne real estate.

As demand outstripped supply and affordability continued to drive buyer behavior, Melbourne’s property market not only survived but thrived, proving once again why it remains a top choice for investors and homeowners alike.