Toorak house prices collapse 25% as luxury market cools sharply
Toorak house prices fell more than 25 per cent in a year as affordable suburbs rose.
Toorak, one of Australia's most prestigious suburbs, saw median prices plunge 25.2 per cent to $4.19 million in the 12 months to September. Hawthorn, Mont Albert, South Yarra, Fitzroy and Carlton North all fell between 12 and 16 per cent.
Domain's chief economist said premium buyers can afford to wait and sit on the sidelines when the market is uncertain, so the top end cracks first. Some affordable suburbs are booming: Riddells Creek rose 16.3 per cent, Maribyrnong 15.4 per cent and Monbulk 14.2 per cent.
First-home buyers are driving demand at the lower end because they can afford those prices and have reduced borrowing capacity in the higher-rate environment. One recent buyer paid $796,000 for a three-bedroom house in South Morang after months of searching.
Experts warn Melbourne's median house price could dip below $1 million by year's end.
- $4.19 million, down 25.2 percent
- Toorak median price
- Dr Nicola Powell, Domain
- Chief economist
- 16.3 percent to $1,116,000
- Riddells Creek growth
- $796,000 for three-bedroom in South Morang
- Recent first-home buyer price
Why it mattersThe property market split shows a sharp wealth divide: luxury homeowners facing losses while first-home buyers finally get a chance to enter the market.
AustraliaFalling prices in expensive Melbourne suburbs may spread to other cities, affecting mortgage stress and household wealth, while first-home buyers benefit from more affordable entry points.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
