House prices in St Albans have skyrocketed, according to new figures.
St Albans had a median house price of $518,750 in the September quarter, up 22.7 per cent on the previous year, while unit/apartment prices rose by 8.5 per cent in the same period to a median of $360,000, data from the Real Estate Institute of Victoria reveals.
Unit/apartment prices increased by 5.1 per cent between June and September alone.
Some agents have speculated that the removal of two level crossings appears to be having an affect, as St Albans’ median house price growth in the five-year period prior to the level crossings’ removal was 2.1 per cent.
Institute chief executive Geoff White said the area was experiencing robust growth due to its proximity to the city and the value of land relative to the rest of Melbourne.
“Strong price growth has been recorded in a number of middle and outer Melbourne suburbs this year, driven by buyer demand for space and larger homes further from the city,” Mr White said. “St Albans is benefitting from its proximity to the city, with buyers increasingly looking for value within middle Melbourne.”
Mr White said the area remained affordable compared to similar outer Melbourne suburbs.
“St Albans offers solid growth potential, with a median house price well below the middle Melbourne median of $861,500 and also below the outer Melbourne median of $572,000,” he said.
Ray White St Albans principal Shaun Marijanovic said buyers were starting to appreciate St Albans.
“People have realised that it’s only 20 minutes from the city and you can get a decent house for $500,000 to $600,000,” Mr Marijanovic said.
“The railway going underground has had an affect. There’s good schools nearby, there’s a university, a hospital … with cheap interest rates, it makes for an attractive option to live or for an investment property.
“The trend upwards for prices is the steepest we’ve seen for some time.
“Early next year, we look like selling a weatherboard home in St Albans for in excess of $1 million.”
