The most profitable suburbs for home owners in Melbourne: Robert Larocca

RP Data has revealed that home owners who sold a home in Flinders over the past financial year have  achieved the best capital gains in Melbourne by gross profit. Closer to the CBD vendors in Armadale have also recorded very high capital gains.

RP Data’s Victoria Housing Market Specialist Robert Larocca said that with 91.9 per cent of sales returning sellers a profit, it was clear that housing was a good investment over the medium to long term and timing is critical when buying and selling real estate.  

"The RP Data quarterly results showed that across the Melbourne metro area, over one third of sellers doubled their original purchase price.  

The Yarra Council region had the smallest proportion of loss making re-sales where just 3.9% of all re-sales recorded a gross loss over the June quarter.  

"The largest proportion of loss making re-sales was located in the Melbourne Council region at 17.3% of all re-sales over the June quarter.  

This unique research by RP Data is derived by comparing the outcomes of resale properties in the past year.  

"Based on profits made from resales of houses, the top five suburbs in Melbourne were Flinders, Armadale, Caulfield, Oakleigh East and Parkville.  

"The suburbs in the top 50 represent a variety of differently priced markets showing that profits are not confined to the most expensive areas.  

"The RP Data top 50 list shows that the suburbs around the hills to the north east and eastern fringe of Melbourne have been good investments with Belgrave Heights, Belgrave South, Montrose, Warrandyte, Mount Dandenong, Olinda, Kallista and Warburton.  

"Over the long term there has clearly been a trend for tree-change close to the city.  

"The other notable trend is inner north with Parkville, Princess Hill and Fitzroy North. These suburbs have been priced at a point where they are very attractive to buyers compared to the inner east and also feature period-style homes.  

"Outside of Melbourne, the strength of the Geelong market was apparent with many suburbs in the region providing all sellers with a profit," Mr Larocca concluded.