Melbourne's most affordable suburbs

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May 18, 2017

Melbourne's most affordable suburbs

With a median house price of $346,000, Melton West is Melbourne’s most affordable suburb.

ypa

This four-bedroom house at 10 Galilee Boulevard, Welton West sold for $462,000 earlier this month.
ypa

This three-bedroom house at 17 Field Street, Wyndham Vale sold for $442,500 earlier this month.
Sweeney

This three-bedroom house at 18 Gibbons Street, Werribee sold for $580,000 earlier this month.
First National Real Estate

This four-bedroom house at 23 Catherine Place, Pakenham sold for $475,200 earlier this month.
Nest Real Estate

This four-bedroom house at 19 Isaacs Close, Sunbury sold for $420,000 earlier this month.
LJ Hooker

A two-bedroom townhouse at 12/9 Kincaid Drive, Mernda sold for $312,000 earlier this month.
Ray White Dural

This three-bedroom house at 31 Healesville Loop, Craigieburn sold for $535,000 earlier this month.
Harcourts

This three-bedroom house at 1 Greenhill Rise, Hampton Park sold for $430,000 earlier this month.
Biggin & Scott

This four-bedroom house at 2 Connie Court, Cranbourne sold for $760,000 earlier this month.
Barry Plant

This four-bedroom house at 43 Penrose Promenade, Tarneit sold for $598,000 earlier this month.

With a median house price of $346,000, Melton West is Melbourne’s most affordable suburb.

Overall, Melbourne recorded its strongest price growth in four years during the March quarter, with the median house price rising 7.6 per cent to $826,000, according to the Real Estate Institute of Victoria.

Joseph Walton, president of the REIV, told SCHWARTZWILLIAMS that he attributes the continued rises in Melbourne property prices to low stock on market, high population growth, and record low interest rates.

With growing numbers attracted to Melbourne's more the affordable suburbs as prices spiral out of reach elsewhere, 17 of the top 20 most affordable suburbs recorded double-digit growth in the year to March.

Outer Melbourne has seen a marked increase in auction volumes this year, says the REIV. Yet outer Melbourne's median house price is $628,500, still well below the city-wide median.

“Melbourne’s outer suburbs continue to offer value for money with many of the city’s most affordable areas also experiencing solid annual price growth,” said Walton, adding that infrastructure spending in the area is likely to cause prices to keep rising.

“Recent infrastructure commitments by the Andrews Government will undoubtedly boost the city’s outer suburbs, where buyers can enter the market for as little $400,000,” he said.

Walton said there is still affordable housing available in Melbourne.

“There are still affordable opportunities for buyers to enter the market, with more than 70 suburbs across the city recording a median house price below the $600,000 barrier.”

“Buyers priced out of their preferred suburb should consider either a smaller home within that area, or look at suburbs slightly further out,” Walton advised.

Real estate remains an attractive investment said Walton.

“Access to the housing market is particularly important given it is the nation’s largest store of personal wealth, exceeding the combined value of the ASX and superannuation funds,” he said.

Other notable statistics:

Melbourne has 74 suburbs with a median house price below $600,000
Melbourne has seven suburbs with a median house price below $400,000
Melbourne has 157 suburbs with a median house price below the metro Melbourne median of $826,000