Melbourne's most affordable suburbs
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Jul 28, 2016
Melbourne's most affordable suburbs
It's still possible to find good value in Melbourne's property market; you just have to know where to look.
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Image: Professionals Ryder Real Estate.This four-bedroom home in Melton West recently sold for $350,000.
Though Melbourne property prices continue to climb higher, new REIV data shows that smart buyers can get a foothold in the market for a fraction of the city’s median house price.
In the three months to 30 June, Melton West was Melbourne’s most affordable suburb with a median house price of $331,000 – less than half the city's $725,000 median.
South west of the CBD, Werribee offered buyers value for money with a median house price of $355,000.
Buyers looking in the below $400,000 bracket can turn to Cranbourne (median house price $380,000), Wyndham Vale ($385,000) and Pakenham ($393,000).
REIV CEO Geoff White said record low interest rates and a strong market are driving price growth in areas further from the city.
“These areas continue to offer value for money, with all of the top 10 most affordable suburbs experiencing solid capital growth in the past year,” he said.
Other areas pinpointed by the REIV were those where a quarter of all sales are at a highly affordable level - $420,000 or below. These “lower quartile” suburbs include Caroline Springs, Frankston, Craigieburn and Mernda, where properties can be bought well below the median price in each suburb.
Mr White encouraged buyers looking for good value to consider lower-priced homes across the city.
“While the suburb’s median house price may be out of your budget, finding the right home is important,” he said. “Houses with renovating potential or slightly smaller properties in good suburbs offer great buying in the current market.”
Mr White added that affordable suburbs had performed well over the past 12 months, with four of the top 10 most affordable suburbs delivering double-digit growth.
Melbourne's most affordable suburbs
| Most affordable | Suburb | June 16 median | Annual change |
| 1. | Melton West | $331,000 | 3.5% |
| 2. | Werribee | $355,000 | 9.4% |
| 3. | Cranbourne | $380,000 | 11.4% |
| 4. | Wyndham Vale | $385,000 | 5.9% |
| 5. | Hampton Park | $385,750 | 7.2% |
| 6. | Hoppers Crossing | $390,000 | 13.8% |
| 7. | Pakenham | $393,000 | 5.5% |
| 8. | Carrum Downs | $405,000 | 12.4% |
| 9. | Sunbury | $412,500 | 10.0% |
| 10. | Roxburgh Park | $425,000 | 5.2% |
Source: REIV
Melbourne top 20 lowest quartile suburbs below $500,000
| Suburb | Lower quartile | June 16 median | Annual change |
| Melton West | $269,125 | $331,000 | 3.5% |
| Werribee | $320,000 | $355,000 | 9.4% |
| Wyndham Vale | $328,500 | $385,000 | 5.9% |
| Hampton Park | $351,916 | $385,750 | 7.2% |
| Pakenham | $353,000 | $393,000 | 5.5% |
| Cranbourne | $357,000 | $380,000 | 11.4% |
| Hoppers Crossing | $360,000 | $390,000 | 13.8% |
| Sunbury | $360,000 | $412,500 | 10.0% |
| Rosebud West | $375,000 | $449,500 | 16.2% |
| Craigieburn | $380,000 | $426,000 | 7.1% |
| Mernda | $385,250 | $430,000 | 8.9% |
| Frankston | $390,000 | $437,500 | 11.4% |
| Rosebud | $390,000 | $437,500 | 6.5% |
| Cranbourne North | $390,000 | $455,000 | 15.4% |
| Tarneit | $391,000 | $430,000 | 3.5% |
| Roxburgh Park | $392,500 | $425,000 | 5.2% |
| Carrum Downs | $393,000 | $405,000 | 12.4% |
| Truganina | $402,000 | $450,000 | 15.5% |
| Deer Park | $415,000 | $440250 | 14.9% |
| Caroline Springs | $420,000 | $500,000 | 11.4% |
Source: REIV
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