Top Melbourne capital gains suburbs revealed

A new analysis by RP Data has revealed which property owners, over the past financial year, received the best capital gains in Melbourne by gross profit.

Those who sold in Flinders during this time period saw the best result, while those closer to the CBD in Armadale also saw significant capital gains.

Over the period, 91.9% of sales returned sellers a profit, said RP Data's Victoria housing market specialist, Robert Larocca, with those having held for longer seeing the best results.

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

The smallest proportion of loss-making re-sales was seen in the Yarra Council region, with 3.9% recording a loss over the June quarter.

Meanwhile, the largest proportion of loss-making re-sales was seen in the Melbourne Council region, with 17.3% of all re-sales selling at a loss over the same period.

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

"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."

Looking at the long-term, Larocca noted a trend for tree-change close to the city. The other notable trend included the inner north with Parkville, Princess Hill and Fitzroy North, with prices being attractive to buyers compared to the inner east, while also featuring period-style properties.

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