The median house price in Dandenong increased 4.1 per cent to $246,000 over the 12 months to November 2006, with a 10 year trend of 10.2 per cent.

Located 31 kilometres from Melbourne, Dandenong is set to experience significant growth due to both existing and planned infrastructure. Dandenong will benefit from the Eastlink freeway, which is 12 months ahead of schedule and will be completed in 2008. The improved access created by 16 interchanges along Eastlink will mean significant rises in values for suburbs along the proposed corridor.

The State Government has plans to triplicate the Dandenong railway line to Melbourne to support higher volumes of trains servicing the area’s growing population. A $290 million infrastructure package will also improve Dandenong’s amenities and appearance. Prices have remained steady since the market peaked in 2003, keeping Dandenong among Melbourne’s most affordable suburbs.

Lorne/Surf Coast Shire

The median house price in Lorne increased 6.9 per cent to $695,000 over the 12 months to November 2006, with a 10 year trend of 13.8 per cent.

Located within 1.5 - 2 hours drive from Melbourne, the Surf Coast Shire boasts some of the State’s best surf beaches. Infrastructure in the region is improving with construction underway on the Geelong Bypass between Corio and Waurn Ponds. The Bypass will reduce travelling times to Surf Coast towns such as Lorne, Torquay and Ocean Grove by up to 30 minutes and open up the area to more tourism and residents who can commute to work in the city.

Broadacre farming hamlets on the fringe of the coast such as Deans Marsh, Birregurra, Bambra and Boonah are recommended areas for future capital growth. The area remains significantly undervalued when compared with the Mornington Peninsula. Investment will be driven by sea change factors and baby boomer driven investment.