In This Week’s How’s The Market | Edition 151
Today we tackle a trend that is reshaping Melbourne’s property market.
Why are younger wealthy buyers moving away from traditional blue-chip suburbs like Toorak & Brighton?
And where are they choosing to live instead?
This episode focuses on the movement of young money across the city.
Millennials and early Gen X buyers are changing the patterns of suburb preference.
The Changing Buyer Profile
Younger buyers are now at their highest earning potential.
Typically under 40, sometimes up to 45.
They are buying their second homes rather than first.
Many are moving from outer suburbs into the inner east.
This shift is part of the natural progression of a generation.
Gentrification also plays a role.
These buyers are seeking convenience, lifestyle, and community.
Where Young Wealthy Buyers Are Moving
Data shows high-income buyers, earning $3,000+ per week, are clustering outside traditional prestige suburbs.
Top suburbs for these buyers include:
- Richmond and Cremorne
- Prahran and Windsor
- South Yarra
- Collingwood and Fitzroy
Other emerging areas include Docklands, Southbank, and Caulfield.
These suburbs appeal for walkability, cafes, restaurants, and lifestyle amenities.
The shift is clear.
Young wealthy buyers want accessibility and community rather than just land size.
The Appeal of New Suburbs
Buyers who prefer these suburbs over Toorak are often looking for:
- Walking distance to shops, cafes, and trails
- Vibrant high streets with amenities
- Better connectivity to public transport
Suburbs like Armadale, Malvern, Glen Iris, and South Yarra are preferred over Toorak for these reasons in many cases.
These areas provide strong amenities with great schools nearby.
High street shopping, gyms, cafes, and local culture are major draws.
Lifestyle Over Legacy
Younger affluent buyers value lifestyle more than old-money prestige.
Toorak has an old-money vibe that some younger buyers do not identify with.
Security is also a consideration, as some buyers perceive Toorak as having more exposure to through traffic or visibility.
In contrast, suburbs like Armadale or Malvern East offer quiet streets while maintaining strong access to schools and amenities.
The focus is on experience rather than scale.
Walkable, connected, and amenity-rich suburbs attract more young money than sprawling estates alone.
Price and Value Considerations
Moving slightly further out often delivers more bang for the buck.
Land sizes in suburbs like Glen Iris or Malvern East are larger for similar prices.
Buyers are getting better value without compromising on access to lifestyle or schools.
Upsizers can sell under a million and buy between one and two million, creating clear opportunities.
Renovated or ready-to-move-in homes in these suburbs are appealing.
Young buyers prefer convenience, quality, and flexibility.
What The Agents Are Saying
Agents this week have told me that the market is adjusting rapidly.
Vendor expectations are being recalibrated due to slower auctions.
Private negotiations and pre-auction offers are more common.
Many of the properties that are passing in and passing in with reserves in the range which is new.
This is because more agents are expecting to pass in so quoting more in line with expectations as opposed to underquoting and hoping for a group of emotional buyers to show up and bid.
Many agents have told me that vendors are very hesitant to list in the market right now and stock levels are beginning to shrink.
The Wow Factor!
29 Darling Street, South Yarra, Vic 3141
South Yarra Bespoke Estate
Why it WOWs:
- Victorian‑château fusion with grand interior
- North‑facing pool and private garden
- Gourmet kitchen with commercial appliances
- Luxurious bedrooms, ensuite and guest suite
- Wine cellar with SubZero refrigeration
- Secure parking for four vehicles
- Prime location near Toorak Rd, trams, Yarra River
Price guide : $11,000,000 – $12,000,000
Final Thoughts
Young, wealthy buyers are redefining prestige in Melbourne, valuing lifestyle, schools, and walkability over land size.
Toorak still holds history, but the top buyers are spreading to suburbs with community and convenience.
For sellers, these shifts shape demand and highlight new opportunities in Melbourne’s evolving market.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at [email protected]
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
