Chat with us, powered by LiveChatCroydon on the verge of joining Melbourne’s million-dollar club

Croydon on the verge of joining Melbourne’s million-dollar club

Outer-east hillside suburb gaining buyer attention and strong price growth

With house prices jumping more than $100,000 in 12 months, buyers can soon expect to fork out seven-figure sums to live in Croydon.

The suburb’s median house price reached $976,000 in the December 2021 quarter, rising 3.8 per cent from the previous quarter, Real Estate Institute of Victoria figures showed.

“Prices of homes here are getting expensive, but they are still affordable compared to those closer to the city,” Barry Plant Croydon agent Nathan Hick said.

“Family homes here offer value and there has been a consistent supply of listings with sellers getting good prices.”

Described as a 'high demand’ market, Croydon’s median house price rose an impressive $132,500 between January and December 2021, according to sales records.

The outer-east suburb’s house prices nearly doubled between 2013 and 2021, with the median price at $463,000 in 2013. In 2017, the median had risen to almost $800,000, according to realestate.com.au data.

While the median price for houses overall is still below $1 million, the median for four-bedroom houses in Croydon has reached seven figures.

The smaller neighbouring suburb of Croydon North entered the million-dollar club in late 2021 with a median house price of $1.032 million. There are 173 suburbs in Melbourne with a median of $1 million or more.

In the past decade, there were between 300-400 house sales each year in Croydon, except in 2015, when it accumulated 477 sales.

The suburb had 41 properties for rent and 129 properties for sale on realestate.com.au as at February 25, 2022.

The median unit price over the previous 12 months was $655,000, with units renting for $400 weekly and returning a rental yield of 3.2 per cent. Houses can fetch a weekly rental of $470 an annual rental yield of 2.7 per cent.

Croydon has seen a compound growth rate of 6.3 per cent for houses and 5.1 per cent for units, based on five years of sales.

Larger homes or blocks suited for townhouse or unit development can fetch $2-$3 million, while some one-bedroom units are selling in the $200,000-$300,000 price range.

While it takes an average 33 days to sell a house in Melbourne, the days on market for Croydon are significantly lower at just 22 days, reflecting its strong market.

There are a couple of smaller suburbs adjoining Croydon that share its name and postcode.

Home to 5505 residents, Croydon Hills covers just 2.5sq km and had only five properties for rent and seven for sale on realestate.com.au.

It is also a member of the million-dollar club with a median house price of $1.105 million. There were less than 100 house sales in this suburb in 2021.

Covering 2.6sq km, Croydon South with a median house price of $893,600 had six properties for rent and six for sale.