Spatial Analysis of House Price Distribution and Growth in Metropolitan Cities – a Case Study of Melbourne, Australia

Urban local amenities significantly influence house price distribution and growth among the suburbs in metropolitan cities in Australia and in many developed nations. Over the past two decades, Australian metropolitan regions have seen house prices rise by as much as 120%, with notable variations across suburbs. Melbourne. Therefore, this study aims to examine the variations in house price distribution and growth from 2006 to 2016 among the 43 suburbs to understand the impact of urban local amenities. This study used GIS-based statistical methods; in particular, Local Moran’s I reveals spatial outlier clusters to identify patterns in house prices. The study found that the house price growth patterns happened in the census year from 2006 to 2011 (7-144%), and reasonable growth occurred in the census year from 2011 to 2016 (7–48%), except in the suburb of Tottenham (144%). Six suburbs with significant price changes, particularly those closer to the CBD experienced growth rates exceeding > 150%. The findings demonstrated that three suburbs consistently exhibited high house prices, likely due to proximity to the city centre. In contrast, four suburbs have low prices, indicating slower growth in housing prices. Sunshine and Sunshine North suburbs have transitioned from LL house price outliers to HH house price outliers, suggesting a growing demand for those areas. These findings highlight how access to local amenities can impact the housing price at local level, providing valuable information for urban planning and policies that promote a balanced amenities and infrastructure development across a metropolitan city like Melbourne in Australia.