Price falls hit parts of the city in 2018, and Boroondara saw the same.
But while there might be some short-term pain, the area still had the benefit of years of long-term growth that should place many homeowners ahead.
Kay & Burton Hawthorn partner Sam Wilkinson said after the highs of 2017, the market in Boroondara “experienced something of a correction throughout the year”.
Some suburbs still saw small rises — Surrey Hills came out on top with a 5.6 per cent rise in its median price in the 12 months to September to reach $2,022,500, CoreLogic data shows.
Next was Ashburton, with a 3.4 per cent rise to $1.758 million in that period.
Balwyn had a minor rise of just 0.9 per cent to $2.33 million, followed by Hawthorn East at 0.2 per cent growth to $2.1 million.
Boroondara’s other suburbs all saw drops in median price over the 12 month period.
Kew, Balwyn North, Kew East, Deepdene, Glen Iris and Camberwell each had minor decreases of between 1 per cent and 5 per cent, while Canterbury’s median house price fell 9 per cent to $2,637,900. Hawthorn’s median house price fell 11.5 per cent in that time.
But looking long-term, these suburbs each saw strong price growth that far outweighed any falls this year.
Across the previous five years, Ashburton’s median house price has risen a whopping 86.5 per cent, while the median in Hawthorn East has grown by 84.2 per cent.
Balwyn, Balwyn North, Kew East, Surrey Hills and Camberwell have all seen rises in the 60 per cent range.
Glen Iris and Canterbury had median price growth of more than 40 per cent in that period, while Hawthorn, Deepdene and Kew each rose more than 27 per cent.
Mr Wilkinson said buyers should treat property ownership as a long-term investment.
“In my time in real estate the few downturns that we have had have always been relatively short when measured in the overall growth cycle,” he said.
Premium properties in prime locations had continued to perform well through the year despite the changing market, particularly new or recently renovated houses, he added.
Median prices for units across Boroondara saw stronger growth.
Ashburton saw a 16.2 per cent rise in unit prices across the 12 months to September.
It now has the area’s top ranking of $1.11 million for median unit price, which also takes into account apartments and townhouses, CoreLogic data shows.
Camberwell saw a 9.8 per cent rise in median unit price to $867,500 across the year, while Balwyn North’s grew 8.3 per cent to $980,000.
Glen Iris, Balwyn and Kew each saw small rises, while there were minor drops in unit price in Hawthorn East, Surrey Hills, Hawthorn, Kew East and Canterbury in the 12 month period.
But again, long-term growth far outweighed any short-term change.
Across the previous five years, Ashburton saw a 61.5 per cent rise in median unit price, Camberwell a 52.2 per cent rise and Kew East a rise of 45.5 per cent. Hawthorn East units grew 8.1 per cent in the five-year period, while remaining suburbs saw median unit price rises of between 19 and 30 per cent in that time.
Hawthorn stood out as Boroondara’s hub of sales activity for most of the year.
A total of 478 sales were recorded in the suburb in the 12 months to September, according to CoreLogic.
It was one of just two suburbs where more units transacted than houses — 302 compared to 176. The same happened in Hawthorn East, where 146 units sold compared to 140 houses, resulting in a total of 286 sales.
In Kew, a total of 439 recorded sales were split across 255 houses and 184 units.
Glen Iris was also a busy suburb for sales, with 370 transactions recorded — 208 houses and 162 units. Camberwell saw 333 sales: 237 houses and 96 units.
Balwyn and Balwyn North also had large sales numbers, while exclusive enclave Deepdene saw just 33 sales recorded in the period, with 25 houses and 8 units changing hands.