Affluenza a driver in Melbourne's prestige property market

Melbourne's residential prestige property market above $2 million is running hot in Balwyn, Balwyn North and Canterbury, according to Herron Todd White.

Herron Todd White's October Month in Review noted school zones, interest rates and overseas investment and 'affluenza' as key drivers of the local property market.

"Median house prices in Balwyn have risen 33% in the past five years due to high demand from foreign investors and also the desire to be in the popular Balwyn High School zone," it read.

"The future of house prices in Balwyn appears to be unsustainable. Limited supply has resulted in overpriced housing and foreign investment will be curbed in the future, which could cause the market to stall. 

"In the foreseeable future, the Balwyn, Balwyn North and Canterbury prestige residential markets however look likely to remain heated for the next 12 months." 

Notable sales include:

• $2.2 million will secure a 4-bedroom, 2-bathroom, 2-car property in Balwyn, Balwyn North and Canterbury on about 700 square metres (for example, 15 Stanley Grove Canterbury) 
• Vacant land sold for $2.65 million in Balwyn in March 2015 (3 Henley Street) 
• An incomplete property sold for $2.95 million (112 Yarrabat, Avenue) 
• $3 million will secure a 5-bedroom, 4-bathroom, 2- to 3-car property in Balwyn on circa 800 square metres (for example, 40 Moody Street, Balwyn North) 
• $4 million plus will secure large residential allotments with improvements comprising 5-bedrooms, 3-bathrooms, 2- to 3-car space accommodation on an allotment of over 1,000 square metres (for example, 19 Monomeath Avenue, Canterbury sold for $9.226 million). 
• 6 Wills Street, Balwyn sold in May 2015 for $3.16 million. It previously sold in September 2014 for $2.23 million. This is a growth of $930,000 in only eight months. What makes this sale even more notable is the fact that the property isn’t even located in the Balwyn High School zone (zoned to KEW High School).