“For buyers priced out of their chosen area, it’s worthwhile looking at next-door suburbs which may offer similar lifestyle and amenities without the premium price tag," says REIV.
Looking for a home but can’t afford to buy in your favourite suburb?
Don’t despair. Buyers will often find their dream home in a neighbouring suburb for a fraction of the price.
New REIV data shows there is a significant difference in the median house prices of adjacent suburbs, even if the suburbs have similar characteristics and amenities.
For example, buyers priced out of desirable Inner-Melbourne’ South Yarra, where the median house price is $1.7 million, can purchase in Cremorne, with is just across the Yarra, for $700,000 less.
In the north west, the median price of homes Essendon and neighbouring Pascoe Vale South differ by half a million dollars. While the median price in Essendon is $1.3 million, in bordering Pascoe Vale South the median price of a home is $791,250.
Buyers hoping to purchase in West Melbourne, where the median price is $1.26 million, may be better off buying in Footscray, where the median home price is $742,500.
In Notting Hill, the median house price is $850,000, whereas in nearby Mt Waverly, the median price is $1.3 million – a 70% difference.
At the more affordable end of the spectrum, buyers hoping to buy in Melbourne’s western suburbs can save up to $60,000 by buying in Melton rather than Melton West.
REIV CEO Geoff White said good value can be found in these ‘bridesmaid’ suburbs.
“In the past 18 months we’ve seen significant capital growth in what have always been these neighbouring suburbs. Buyers are increasingly looking for value, and these new growth areas continue to offer that as well as first-class amenities,” he said.
But he said properties in these suburbs “remain considerably more affordable than their neighbouring counterparts. “
“For buyers priced out of their chosen area, it’s worthwhile looking at next-door suburbs which may offer similar lifestyle and amenities without the premium price tag,” said White.
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