Property investors who own homes in the suburbs surrounding Melbourne are seeing the value of their assets increase by as much as $1,200 a day, new figures reveal.
Statistics published by realestate.com.au and CoreLogic show that house prices in the city of Melbourne itself rose by an average 13.7 per cent over the past 12 months, but growth has been much higher than this in many of the city's suburbs.
Kinglake West was the suburb with the highest growth in property prices over the last year, coming in at 51.6 per cent, which is equivalent to $541.10 a day. This was followed by Essendon North, where prices grew by an average of 44.4 per cent over the course of the year. The third highest growth was recorded in Abbotsford, with asking prices growing by 38.2 per cent in the last 12 months.
Meanwhile, average house prices in St Kilda rose by just over one-third (33.7 per cent), equivalent to $904 a day. In Princes Hill, prices were up 33.2 per cent throughout the year, which was equal to $1,205 each day, making this an extremely lucrative location for property investors to snap up deals.
Significant increases in house values were also recorded in Diggers Hill (32.3 per cent), Carlton (31.3 per cent), The Patch (31.2 per cent), Frankston North (30 per cent) and Lower Plenty (29.1 per cent).
Nerida Conisbee, chief economist at realestate.com.au, commented: "If you're buying in Melbourne, you're going to do pretty well. You don't need to buy in a really expensive suburb to see strong price growth."
She added that factors including population growth, improving strength in the local economy, the creation of new job opportunities and relative affordability in comparison to Sydney are all likely to be behind increased interest in the Melbourne suburbs.