Melbourne bayside flat values leap

Flat and unit values in Melbourne's bayside suburbs have gone up by as much as 70 per cent in only two years, statistics from the Department of Sustainability and Environment show. The value of flats and units in the Bayside municipality – which includes the upmarket suburbs of Brighton, Sandringham and Hampton – rose by 70 per cent between 2000 and 2002. Over the same time, there was also a 23 per cent increase in flats and units built in the area.

Of the six municipalities surveyed by the department, Bayside showed the biggest leap in values. In Hobsons Bay, flat and unit values increased by 57 per cent. In the new hotspot of Newport, values rose by 80 per cent followed by Spotswood with a 60 per cent increase. Real Estate Institute of Victoria president Frank Hellier said the strong price increases are expected to plateau. Values will only go up by between 10 or 20 per cent in the next two years, he said.