Melbourne property watchers – get ready to be surprised.

While the overall Melbourne housing market has underperformed many other state capitals in 2023, there were some suburbs that defied the odds and skyrocketed in value providing their property owners with strong capital growth.

Here’s a list of Melbourne’s top-performing suburbs provided by based on median home value growth for houses and units combined over the past 12 months.

1. Harkaway Takes the Crown

Leading the pack with a stunning 10% increase in median home value is Harkaway, a suburb located in Melbourne’s outer east.

This hidden gem has seen its property market boom, making it a prime target for families seeking a slice of the Melbourne dream.

According to Karen Dellow, a senior analyst at PropTrack,

Harkaway’s appeal comes down to its proximity to the city as well as the countryside.

Suburbs in the outer regions of the city have become more popular as workers spend less time in the office.

2. Officer South Makes a Strong Showing

Coming in a close second is Officer South, another outer-eastern suburb that has experienced a remarkable 9.7% increase in median home value.

Officer South offers a blend of rural charm and proximity to the city, making it an attractive option for those seeking a lifestyle change.

3. Glen Waverley Maintains its Momentum

No list of Melbourne’s top performers would be complete without Glen Waverley.

This established suburb in the east has long been a popular choice for families and investors, and its median home value has grown by a healthy 8.5% this year.

Glen Waverley’s combination of excellent schools, convenient amenities, and easy access to the city continues to underpin its property market strength.

Beyond the Big Three

But it’s not just the outer suburbs that are shining – there are hidden gems to be found all across Melbourne.

Here is a list of Melbourne’s top property markets for 2023:

  1. Harkaway: $1.294m — up 10%
  2. Officer South: $820,000 — up 10%
  3. Balnarring: $1.388m — up 8%
  4. Balwyn: $2.079m — up 8%
  5. Somers: $1.666m — up 8%
  6. Deepdene: $3.006m — up 8%
  7. Canterbury: $2.708m — up 8%
  8. Glen Waverley: $1.507m — up 8%
  9. Vermont South: $1.458m — up 7%
  10. Forest Hill: $1.155m — up 7%

What’s in Store for 2024?

With Melbourne’s property market defying predictions and continuing to grow, it’s no surprise that many are wondering what 2024 holds.

While there are definitely some potential bumps in the road ahead, Melbourne’s strong economic fundamentals, its lifestyle appeal, and the huge number of overseas migrants coming to live in Melbourne suggests that its property market is likely to remain resilient.

Investment-grade properties need to be your key focus

While lists of short-term capital growth like this are interesting, that doesn’t necessarily mean that any property in these locations would automatically be considered a good investment.

Across the country, there are more than 10.5 million dwellings and it’s my opinion that only around 4% of the properties on the market at any given time are “investment grade”.

I’ve written plenty of articles and voiced many podcasts over time to share what I consider an investment-grade property is (more here and here if you’d like to explore), so I won’t go into the characteristics of a great investment location or the type of properties that I would call investment grade.

As you consider your investment journey in the New Year and the types of assets you’d like to add to your portfolio, I encourage you to consider:

  • What are your long-term investment goals?
  • Why do you want to invest in property as opposed to other investments?
  • How long do you plan to own your investment portfolio?
  • What kind of budget are you working with?

These are all the kinds of questions we encourage our clients at Metropole to consider when we work together to build their investment portfolio.

Whether you plan to own one investment property or 5 (or more!), the ideal investment strategy for you will be personal, as it’s based on your own unique risk profile, income, expenses, and goals.

When you take all of these things into consideration, you can work out your long-term “goal”, and break it down into smaller, more achievable goals that you aim to tick off one year to the next.

Having unclear goals can cost you a small fortune, so getting super clear on what it is you want to achieve is the first step towards building real and lasting wealth in your life.

Attaining wealth doesn’t just happen, it’s the result of a well-executed Strategic Property Plan.

Planning is bringing the future into the present so you can do something about it now!

Why not get the team at Metropole on your side to help you – we’re more than just another buyers’ agent – we help our clients safely grow intergenerational wealth through strategic property advice.

We are big enough to tip the scales in your favour, but still small enough to care.

Click here to organise a free complimentary wealth discovery chat with one of our wealth strategists.

About Michael Yardney
Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been voted Australia's leading property investment adviser and his opinions are regularly featured in the media.