Armadale a housing hot spot

ARMADALE is Stonnington’s top-performing suburb, lifting its median price an outstanding 84 per cent in the past five years.

RP Data figures released last week show Armadale increased its value more than any other Stonnington suburb in the past five years.

But there was a 9 per cent drop in the last three months of 2011 amid a gloomy global economic outlook.

Leading buyers’ advocate David Morrell said in the last quarter the top-end market ($3 million-plus) was the quietest in 10 years.

“Agents are floundering, the number of transactions aren’t there, the turnover is just not happening,” Mr Morrell said.

“Buyers are like tigers in long grass waiting to pounce.”

He said there was also a reluctance from vendors to put properties on the market.

“People aren’t putting $5-10million properties to the market, they don’t know if the market is there,” he said.

Hocking Stuart Armadale director Andrew Summons said figures could be interpreted many ways.

“In the last few months of last year, a lot of the more expensive properties didn’t come on the market because people were concerned about finances and the situations overseas,” Mr Summons said.

“So if there are 20 sales, all under the previous median, of course it’s going to show a reduction.

“Armadale has shown the most growth because of its village atmosphere.

“People want to live in Armadale.”

Prahran had the second most growth, up 47 per cent over five years.

Toorak grew 14 per cent, despite being down down 7 per cent in the last three years.