Melbourne's suburb of Glenroy is emerging as a premium real estate consideration in the wake of a string of sales in excess of $1 million.
Sales of this scale that have been made over the past year mean that some properties in the suburb are commanding prices that are more than twice the median average for the area, Domain reports.
Once a working class postcode, Glenroy is shrugging off the reputation it formerly shared with its northern neighbour Broadmeadows.
Savvy property developers are taking advantage of its proximity to the city and rich infrastructure and paying seven-figure prices for what they see as knock-down opportunities.
This has been going on for several years now - and the industry is reaping the rewards of profits that come from splitting quarter-acre blocks into multiple townhouses.
As a result of this trend, owner-occupiers are now parting with similarly large sums to buy living space in the suburb.
Nearly a dozen properties have sold above the million-dollar mark over the last 12 months - most recently including a record price for a residential home.
The purchase of this four-bedroom property at Cardinal Road, opposite the Northern Golf Club, was fought out by eight bidders. The eventual winners of the auction paid $1,217,500 - almost triple the price the vendors purchased it for six years ago.
Andrew Wilson, chief economist of the Domain Group, said: "Glenroy has been on the radar for couple of years, but these sorts of sales pushing over a million dollars are a sign of the times.
"With the ever increasing surge of gentrification and the search for affordable suburbs ... it was just a matter of time."
Glenroy's median currently sits at $514,187 - a figure that has grown by five per cent in the past year and 14.3 per cent in the last five years.
