Melbourne suburbs that will perform best in terms of house price growth in 2023 revealed

The numbers are in and Melbourne's best-performing suburb this year is Harkaway in Melbourne's south-east.

Based on the median home value growth for homes and units combined over the past 12 months, it recorded an increase of 10%.

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Harkaway's appeal lies in its proximity to both the city and the countryside. Suburbs on the outskirts of cities are becoming more popular as workers spend less time in the office.

Two other southeastern suburbs were on the list. Officer South was his second and Glen Waverly his eighth.

Melbourne has been slow to recover from the interest rate downturn in 2022, with house prices still 3.71% below their March 2022 peak. However, prices have increased by 1.39% from last year and are expected to rise further in 2024. .

REA economist Karen Derow said Melbourne was slow to recover from the interest rate-induced downturn in 2022.

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Two Mornington Peninsula suburbs, Balnarring and Somers, made it into the top 10, with both rising 8% year-on-year.

Two of Melbourne's most expensive suburbs, Deepdene and Canterbury, have also seen prices rise this year, with both rising 8% year-on-year.

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While these have been the suburbs that have seen the most growth, other areas remain popular and have high home values, making them some of the most expensive.

During the pandemic, prices in Portsea soared as city residents sought refuge on the peninsula to avoid city restrictions and enjoy more outdoor space.

As a result, Portsea was named Melbourne's most expensive suburb, with a median price of $3.17 million.

Nearby Sorrento was the fourth most expensive suburb, with a median home price of $2.17 million.

Deepdean and Canterbury are also ranked second and third respectively.

Toorak may have the most expensive homes, but it doesn't make it into the top 10 as the overall median price is lower due to the large number of apartments.

Melbourne's Top Property Markets 2023

Harkaway: $1,294,000 — 10% increase

Officer South: $820,000 — 10% increase

Balnarring: $1,388,000 — up 8%

Balwyn: $2,079,000 — up 8%

Summers: $1.666 billion — 8% increase

Deep Dean: $3.06 billion — 8% increase

Canterbury: $2.708 billion — 8% increase

Glenn Waverley: $1.507 billion — up 8%

Southern Vermont: $1.458 billion — 7% increase

Forest Hill: $1.155 billion — 7% increase

Source: PropTrack Automated Rating Model

Median price and growth rate blend both homes and units