Clyde North emerges as a booming real estate hotspot

Clyde North, an outer suburb located approximately 50 kilometres southeast of Melbourne’s CBD, has become a focal point in Australia’s real estate market, defying broader trends in Victoria. Over the past year, this burgeoning suburb recorded 1,113 house sales, making it one of only nine Australian suburbs to exceed 1,000 sales within the same period. This remarkable turnover places Clyde North as the fifth highest in the country, according to data from realestate.com.au.

The suburb’s growth is largely attributed to its population boom, having expanded by a staggering 435% over the last decade. This rapid development has caught the attention of investors and first-home buyers alike, despite Victoria’s reputation for having the highest investor taxes in the nation. Matthew Scafidi, founder of the buyers agency Abode Advocacy Group, describes Clyde North as “one of Melbourne’s fastest-growing suburbs.” He highlights the suburb’s “exceptional affordability and long-term growth potential” as key factors driving its popularity.

Clyde North’s median house price currently stands at $750,000, reflecting a 4.2% increase over the past 12 months. This growth outpaces Greater Melbourne’s average annual increase of 3.4%, where median dwelling prices are now at $854,000, according to the PropTrack Home Price Index.

Local real estate agent Aseem Jhanji from Empire Real Estate Agents Casey, who has lived in Clyde North for eight years, notes the suburb’s appeal to first-time buyers and families. “The suburb is a magnet for first-time buyers and families seeking affordable new homes,” Jhanji said. He points out that properties priced under $850,000 are selling rapidly, despite the abundant supply in the area. “This shows you the depth of the market. I don’t know any other suburb where there’s been that many sales in one year,” he added.

Jhanji also mentions that the suburb’s newness is a significant draw. “The houses here are brand new, unlike Cranbourne 10 minutes away where houses are often around 20 years old,” he said. This modern appeal, combined with a family-friendly environment, makes Clyde North an attractive option for buyers.

Despite Melbourne’s broader investor slowdown, driven by increased absentee surcharges, reduced land tax thresholds, and higher stamp duties, investors are still keen on Clyde North. Jhanji noted that two-storey homes in the area are renting for over $800 per week, with high demand ensuring they don’t stay on the market for long.

Scafidi echoes this sentiment, emphasising the suburb’s investment potential. “It represents one of the city’s best opportunities for entry-level buyers and investors seeking solid yields and medium-term capital uplift as amenity continues to mature,” he said. He is optimistic about Clyde North’s future, stating, “We’re sure to see continued growth into the year.”

The suburb’s location within Melbourne’s southeast growth corridor is another advantage. Scafidi highlights the area’s expanding infrastructure, including new schools, retail hubs, and transport links. A significant pipeline of housing development is also underway, with 3,000 new homes scheduled to be built in the next 12 months. This includes widened arterial roads, new primary and secondary schools, and a proposed train station as part of the Cranbourne line extension, which will improve connectivity to the CBD.

Agent Dilshan Wijerathna from UpHill Real Estate shares a positive outlook on Clyde North’s future. He notes that many new residents are moving from nearby suburbs like Cranbourne, Noble Park, and Pakenham, which have similar median prices. “If someone wants to buy a brand new house, this is one of the closest places to the city right now,” Wijerathna said. He also observes that while properties over $1 million are taking longer to sell, they are becoming increasingly attractive to buyers. “Once the markets start picking up, those properties over $1 million will start moving as well,” he added.

Beyond infrastructure and affordability, Clyde North offers a desirable lifestyle with ample green space. Scafidi points to local attractions such as hilltop parks and the Cascades Wetlands, which provide residents with opportunities for outdoor recreation.

Clyde North’s promising growth and development have earned it a spot in this year’s realestate.com.au Hot 100, an annual list of the top 100 suburbs in Australia with strong growth potential. Now in its fourth year, the Hot 100 is compiled by a panel of experts, including leaders from national real estate agencies, buyers’ agents, researchers, and investors, with additional data and analysis from PropTrack. The suburb’s inclusion in this prestigious list underscores its status as a key player in Melbourne’s real estate landscape.