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Bonbeach, Parkdale and Patterson Lakes led house price growth

Real estate & property trends
10 January 2023
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Buyers drawn to beachside locations and value-for-money blocks

Houses in three Bayside suburbs maintained strong price growth in the first nine months of the year.

A beach lifestyle, strong demand and a supply shortage helped Bonbeach, Parkdale and Patterson Lakes record significant median price growth over 12 months.

Bonbeach, in the City of Kingston, was Melbourne’s top performer, with its median price jumping 32 per cent to $1.175 million to September 2022, according to a Domain house price report.

It was followed by Patterson Lakes, with a 25 per cent increase to $1.3 million, and Parkdale, whose median price rose 19.5 per cent to $1.5 million.

“Buyers want a great lifestyle, and Bonbeach and Parkdale offer this and also value for money because of the block sizes and the beach at the doorstep,” Barry Plant Mentone-Cheltenham sales manager Chris Kavanagh

“We are seeing this anywhere in Bayside from Mentone downwards, and the market is active for suburbs close to the water.”

He noted that the median prices of these suburbs continued to grow even as the overall market underwent a correction due to interest rate rises and uncertainty.

Buyers in Bonbeach and Parkdale are mostly lifestyle seekers and more people are increasingly working from home and the commute to the city was easier, Mr Kavanagh said.

Many buyers are young families coming across from suburbs closer to the city, such as Carnegie, Bentleigh and from the eastern suburbs like Glen Waverley, he added.

Access to quality public and private schools is another drawcard to the area, as are train and bus routes complemented by freeways.

“These suburbs have a good mix of transport links, infrastructure, parks and a family friendly lifestyle,” Mr Kavanagh said.

“The market outlook is good and no matter what it’s doing, everyone wants to live by the beach.”

He estimated that the agency, which is part of a four-office network in the Bayside area, had seen the number of properties for sale decline by 30 percent compared with 2021.

“Any quality property will get good interest and we are seeing 35 groups of people at home inspections, an average of three bidders at auctions and three offers for private sales,” Mr Kavanagh said.

Bonbeach, which covers 2.79sq m and has a population of just 6910 residents, is also sought-after because of its lower density and mix of housing styles.

“The suburb is very popular and still retains beautiful period homes and modern townhouses, and is near the beach, Patterson River, shops and schools,” Barry Plant Chelsea agent Janine Foy said.

“People love Bonbeach as it is not as busy as nearby suburbs and it is also not as crowded with new units.”

Among the region’s top sales in 2022 and managed by Ms Foy was the $2.9 million paid for 10 Harding Avenue (main image above). The buyer planned to build a dream home on the 557sq m vacant block.

The Domain report also noted house prices in some of the city’s most sought-after suburbs, including in Toorak and Armadale, fell strongly over the same period.

Real estate & property trends
10 January 2023
Save Article

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