What were some of Melbourne's best-performing suburbs last year?

The holidays are done, and we’re all sluggishly getting back into the swing of things. Many of you, however, will have hit the ground running on the search for some great real estate. While CoreLogic RP Data research shows summer is the least popular month for property activity (with 22 per cent of transactions), there is still plenty out there if you know where to look.

To get you started on the right foot this year, let’s look at some of 2016’s best property performers in Melbourne, courtesy of CoreLogic’s Best of the Best report.

Carlton North

Capital city dwelling values are on the rise almost everywhere you look – as long as you don’t look at Perth. In Melbourne, there has been some incredible capital growth, especially in suburbs close to the CBD.

Across 67 sales in Carlton North last year, the median house value increased by 29.4 per cent on the year before. Across the entire city, the median was 13.68 per cent. Essentially, Carlton North’s values grew twice as fast as your average home in 2016. Whether the growth is done remains to be seen, but it’s certainly a good sign for investors that want to buy near the city.

Docklands

The downside of values going up so quickly is that many properties struggle to gather a good rental yield for landlords. After all, it is difficult to increase your rent by 29 per cent year on year. In fact, yields in many parts of Melbourne have shrunk to below the 3 per cent mark.

That’s not the case in Docklands, however. CoreLogic states that over 2016, the gross rental yield for Docklands units was 5.1 per cent – one of the best within 10 km of the CBD. It is one of many central suburbs that, despite value growth, still manages to produce positive cash flow for those interested. You might find residential property difficult to come by this close to the city, talk to our team at our Docklands office to review all of your options.

Pascoe Vale

While growth is crucial for investors, those that are yet to buy into Melbourne’s best suburbs might be looking at other factors – namely, affordability. This is where property in Pascoe Vale and Pascoe Vale South might catch the eye.

Across last year, these two suburbs were among the most affordable within 10 kilometres of the CBD, with medians below $800,000. With Coburg North and Preston joining them in the top ten, there’s plenty to find for those with less to spend.

Of course, this is just a sample of last years top performers – and no matter which suburb you’re buying in, there’s going to a wide variety of homes available. To make sure you’re getting something that suits your needs exactly, talk to the team at Nelson Alexander. Nobody knows the inner north and central suburbs better than Nelson Alexander.