Buyers are often encouraged to purchase the worst house in the best street, but new REIV data suggests the postcode may be worth more than the street name – up to $836,000 more to be exact.
In the year to June 30, homes on Beach Rd experienced the largest price discrepancy between postcodes with apartments in Hampton recording a median price of $1,361,000 – $643,000 more than apartments also located on Beach Road but in Black Rock and $836,000 more than those in Mentone.
A postcode also made a six-figure difference on Chapel Street with apartments in desirable South Yarra recording a median price of $772,000 – $230,000 more than those in the St Kilda end of the street.
Apartment prices on Dandenong Road also varied significantly depending on their postcode with those classed as Prahran fetching $215,000 more than those in Malvern East.
Postcodes also had a considerable impact on apartment prices in Toorak Road, Whitehorse Road and Burwood Road.
REIV President Joseph Walton said a home’s postcode, which can change depending on which side of the street you live on, generally adds more value than a street address.
“Given there are quite a few Melbourne roads spanning multiple suburbs, a postcode is now often worth more to the value of a home than a street address.”
“Suburb rezoning in the past decade has resulted in hundreds of thousands of dollars being added to the value of many homes overnight – particularly at the higher end of the market.”
“Buyers value an exclusive suburb address and while there are a number of streets that remain highly sought after, such as St Georges Road in Toorak, it is often the postcode that delivers real value.”
“Buyers looking to purchase in a desirable street should do their research because they may be able to save a significant sum by considering a home a couple of blocks further down the road.
