Ormond among Melbourne's top house performers: PRDnationwide

Continuing the 2015 trend, the Melbourne property market again recorded strong growth in median prices throughout 2016, according to the latest report from PRDnationwide.

Suburbs outside the inner Melbourne ring remained a popular choice for both owner occupiers and investors as they offer an affordable entry point into the Melbourne property market, said the company’s Melbourne Property Hotspots: Second Half of 2016.

These more outer-lying areas continue to gain momentum as private and state funded projects improve connectivity and fuel economic growth, attracting potential buyers.

The North and North Western suburbs in particular are benefitting strongly from this influx of funding, new facilities and economic impetus as their annual property growth continues to climb.

“Melbourne has been the stand-out eastern big-three city in terms of price growth in 2016,” said Tony Brasier, PRDnationwide managing director.

“Major projects and infrastructure construction in mid-outer areas are set to boost these regions even further.”

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The report focused on suburbs within a 20km radius of the CBD, taking into consideration the following factors:

Sales indicators - median price growth over 2016 and previous years, number of sales, average days on the market, and vendor discounting

• Rental indicators - median rental price, rental yield, and vacancy rates
• Affordability - the average Victorian home loan is $374,993 as at June 2016, which is a decrease of -3.1% over the previous quarter
• Project developments commencing in 2016 - commercial, mixed use, infrastructure, industrial and residential. This indicates potential increases in economic and commercial activity, interconnectivity to the key transport routes, the CBD and other major urban business hubs

A four bedroom house at 37 Thompson Street, Ormond (above) has been sold for $1,715,000.

Similarly a three bedroom house at 6 Dunlop Avenue, Ormond (below) was sold for $1,580,000.