House prices have soared in Sunbury over the past three months.
The median Sunbury house price was $518,000 in September – $65,500 higher than the previous quarter, according to new Real Estate Institute of Victoria (REIV) data.
The 14.5 per cent increase on June’s median house price of $452,500 meant Sunbury experienced the state’s second highest growth for the quarter, behind Dromana where prices jumped 15 per cent.
The median house price in Melbourne has increased by just 0.7 per cent since June, to $817,000.
Brad Teal Real Estate Sunbury director, Craig Teal said the hike in Sunbury house prices was due to higher demand than supply and developers seeing the area’s potential.
Mr Teal said the addition of the Metro train had greatly increased Sunbury’s popularity by bringing Melbourne CBD into easy reach for commuters.
“There’s just so many more buyers out there trying to secure properties than there are houses for sale,” he said.
Mr Teal said Sunbury had felt the “tsunami effect” from prices rising to the east of the suburb.
He said developers had also risen as “big players” in the Sunbury marketplace, driving up the price on blocks of land of more than 600 square metres. Mr Teal said developers were buying bigger blocks to construct units.
“It’s pushing the price up, because if someone wants to live in it, they’ve got to compete with a developer.”
But with the median house about $300,000 less than the median Melbourne home, he said Sunbury remains affordable.