Doncaster house prices have doubled in the past eight years and are back where they were at the peak of the 2010 property boom, according to the Real Estate Institute of Victoria.
The median house price in Doncaster is $830,000 – up $90,000 in the 12 months to the end of March – and more than double the $408,000 price of eight years ago, the REIV said.
In a strong endorsement of the property market in Doncaster, the latest REIV statistics show that Doncaster is one of only four suburbs where prices are back at peak levels. The other three suburbs are Brighton, Yarraville and Northcote.
The data also shows that Boronia and Bayswater are experiencing the strongest demand for units and apartments in Melbourne, along with real estate heavyweights Toorak and Kew.
REIV spokesman Robert Larocca said Doncaster was enjoying the benefits of regeneration brought about by a First home buyers are hitting the market in big numbers to cash in on government incentives before a major change on June 30. But there are still advantages for those who buy after July 1.
The $7000 First Home Owners Grant will be scrapped in Victoria from the end of this month for those who buy established properties. But it will jump to $10,000 for buyers who purchase a new property. And all first home buyers will benefit from stamp duty cuts which have been brought forward by six months by the State Government. From July 1, the stamp duty discount for first home buyers will increase from 30 to 40 per cent. From September 1 next year, stamp duty will be reduced by 50 per cent for first home buyers who purchase under $600,000.
The changing rules affecting first home buyers mean they must be alert to make the most of their circumstances, but it is expected that established properties in the lower price brackets will be hotly contested over the next few weeks.
Next financial year, first home buyers wanting to make the most of the government incentives are expected to turn their attention to new homes and apartments or off-the-plan sales.
Doncaster had good sized blocks, was well located and attracted families. The improvements in price and demand were signs of sustained growth for Doncaster, Mr Larocca said.
The market for units and apartments was well supplied in the inner city, pushing buyers to look for value in the middle and outer suburbs, he said. Boronia and Bayswater were in strong demand because they offered good public transport and smaller, more affordable properties. Melbourne’s median house price increased by 5.1 per cent in the March quarter to $561,500 (seasonally adjusted), the REIV said.
The REIV data follows statistics from research company RP Data showing the Melbourne property market “bottomed out” in May last year. Since then, Melbourne property prices have been rising, but are still 6.2 per cent lower than their peak in October 2010, said RP Data’s research director Tim Lawless.
Reserve Bank assistant governor Phillip Lowe said there was evidence that reduced interest rates were helping to increase property prices and confidence in the housing market.
Source: REIV median house prices, March quarter
Doncaster’s price growth