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Buyers swoop on Lilydale and Yarra Valley for value and an urban-meets-rural lifestyle

Melbourne’s outer-eastern region market buoyant with soaring demand and limited supply

The lifestyle offered and increasing demand from first-home buyers are keeping the Lilydale and the Yarra Valley market buoyant.

Rising demand and low supply have seen property prices grow strongly in recent years, with every local suburb popular among buyers, Barry Plant Lilydale director, Ashley Hutson, said.

“There are no hot suburbs as everything is selling well due to demand and a stock shortage,” he said.

“The outlook is good if banks keep lending and I expect the market to keep going stronger.”

Buyers moving further out for the lifestyle are attracted to the larger blocks in Lilydale and surrounding areas, Mr Hutson said.

The impact of the pandemic and more people working from home have also led to demand in the region, he added.

The wide range of properties – from $500,000 units to established homes priced from $1 million – attracts many buyers.

“While prices have risen over the years, they still offer good value compared to many other areas,” Mr Hutson said.

He noted Lilydale house prices grew 5.4 per cent over 12 months to this February, and only 12 properties are up for sale and three for rent on realestate.com.au.

Nearby Wandin North has an even tighter market, with just three properties for sale and two for rent.

Its median house price jumped more than $100,000 in less than a year, from $635,000 in March 2021 to $737,500 this February, according to CoreLogic data.

Each property listing in Wandin North also had a whopping 3383 visits compared with the state average of 1740 visits.

Meanwhile, Mt Evelyn house prices rose $60,000 or 9.1 per cent from $655,000 in March 2020 to $715,000.

Listings in the region are mainly for private sale but more vendors are using auctions.

“It is a popular mortgage market, with many properties selling subject to finance conditions,” Mr Hutson said.

“Long-time residents don’t want to move and new listings attract plenty of interest.”

A four-bedroom house on 2116sq m at 33A Fortune Ave, Lilydale, went under offer quickly for $1 million.

The vendors had a $900,000-$990,000 price guide and received six offers.

In Wandin North, 66 Wellington Rd also had six suitors and went under offer for $1.9 million.

The 5.6ha country-style home had price expectations of $1.75-$1.82 million.

“We are seeing inspection numbers rise again and sellers being well rewarded,” Mr Hutson said.

“There were 10 offers and 110 inspections for 10 Malcolm Court, Mooroolbark, which sold for $775,500.”

Kinley, a new suburb created from the old quarry, will alleviate the housing supply in the area in coming years.

Some 7000 houses, units and townhouses are proposed over a 10-year period.