The Top 5 Most Affordable Suburbs in Melbourne To Buy A Home
Earlier this year, reports detailed how the property downturn Australia has experienced in the past few months seems to be slowing, although it appears to be spreading to areas. As the slump spreads to geographical areas that may have been previously untouched by the downturn, this environment creates the perfect opportunity for first-time buyers looking to kick-start their portfolio, or investors looking for a solid investment or rental property.
According to the CoreLogic national home value index released in March this year, the property market in Melbourne was certainly affected by the 17-month continued decline in property prices, with a recorded drop of 0.8%. Despite the slump, the prices of property located in prime areas close to the Melbourne CBD remain at record-high levels.
While property markets are also showing growth in the outlying suburbs surrounding Melbourne, the price of acquiring or renting a property remains within the grasp of the buyer looking for a value-for-money investment, rental unit, or the first family home.
The decision to move to one of these quieter areas is often made by people exactly for this reason. With the Melbourne CBD still within close proximity and most towns offering all the amenities, facilities and schools one might be looking for, outlying suburbs offer the best of both worlds: countryside living right next to the city.
The Aussie and CoreLogic 2019 Most Affordable Suburbs report lists Melton, Melton South, Millgrove, Cobblebank and Kurunjang as the five most affordable suburbs in Melbourne in 2019.
Located about 35 kilometres west of the central business district of Melbourne, Melton is home to just over 60,000 residents. This area is currently the fastest growing in Melbourne, and its reasonable property prices may be just one of the reasons people are flocking to this part of Victoria.
A hub of sporting activity, Melton offers everything from basketball, harness racing and hockey, and Milton also formed the first American gridiron (perhaps better known as American football) club in 2015.
This area also sports a lively arts community, with the Melton Civic Centre often hosting live performances, and the annual Djerriwarrh Festival drawing crowds every November.
Many parks, gyms and other recreational offerings can be found in Melton, together with shopping centres, a number of private and secondary schools and other amenities.
Median house prices in Melton stand around $390,000, and despite the relatively low price of property, this area also boasts three of the suburbs with the highest median house price growth in the state of Victoria: Weir Views, Fraser Rise and Aintree.
Strong population growth is driving development of the area, which, in turn, entices new residents to the area to drive population growth. This is what makes Melton an especially attractive option for buyers looking to acquire an investment or rental property.
Melton South is located within the City of Melton local government area, and about half-an-hour’s drive from the Melbourne central business district. Popular among families – this suburb has three primary schools and four secondary schools – house prices in Melton South have climbed to a median price of $410,000 over the past few years – that’s a 74.5% increase, but still not close to what you would be paying for property in nearby Melbourne.
The house price growth in this suburb is probably also thanks to the overall increase in population in the City of Melton, driven by affordable property options and the offer of a homely, laid-back lifestyle outside of the city’s hustle and bustle.
There are numerous recreational offerings available to residents of Melton South, among them the historic heritage-listed local golf club, while the nearby forest and numerous parks is also popular among nature lovers.
Weekly mortgage averages at $378, while you can expect to pay weekly rent of more or less $320.
63 kilometres from the Melbourne CBD lay the town of Millgrove, Victoria. With less than 2,000 residents, Millgrove is a hub of small-town living, with a peaceful atmosphere, friendly neighbours and awe-inspiring views drawing families and young professionals alike.
Nestled right next to the beautiful Yarra River, Millgrove isn’t small enough to not make an impression. Residents hail the affordability of property in the town. In fact, Millgrove was rated the most affordable place for entry buyers looking to buy in the vicinity of Melbourne in 2014, with a median house price then of just $295,000. House prices in the area have risen, but may still be very attractive to first-time buyers and investment property seekers, averaging $409,000 in February 2019.
Corelogic Australian head of real estate, Geoff White told the Sunday Herald Sun that the increase in house price in Millgrove shouldn’t dissuade interested buyers.
“But you still get a lot of value for money,” said White, with Rebecca Doolan of Bell Real Estate adding that the area still sees “really good results”, even if they are first-time buyers.
“It’s definitely a market where people who are on their own can still buy in,” said Doolan.
With the population of Melbourne western urban area expected to boom to up to 60,000 people within the next few years, developing outer suburbs like Cobblebank are expected to burgeon from a local suburban hub to a regional business, civic, educational, medical, retail, entertainment, recreational and residential centre over the next few decades. At the centre of these developments is the planned Toolern Town Centre in Cobblebank, which is set to grow into a major regional centre.
The Cobblebank railway station, set for completion at the end of this year, will be critical to the entire City of Melton, the local government area under which Cobblebank falls.
The area is also set to be home to a new five-court indoor basketball stadium, located on the corner of Bridge and Ferris Roads, adding to the already lively basketball scene in Melton.
As this is still a developing area, and considering the overall affordability of property in Melton, buyers and investors can expect many new properties on offer in Cobblebank over the next few years, with loads of opportunities for return on investment due to its ideal proximity to the new railway station. If you are looking to expand your property portfolio, Cobblebank might just be the way to go.
Also located within the City of Melton local government area, Kurunjang is a primarily residential suburb that is hugely popular among families looking for quality of life.
Just over 10,000 residents call Kurunjang home, and the recently opened Kurunjang Community hub promises to foster skills development and recreation in the area.
Melton mayor, Cr Bob Turner called this innovative space “an inviting and well-designed facility, with so many elements for the community to enjoy” that will “encourage hands-on learning for students of all ages as well as provide a range of exciting activities and programs for residents”.
The Kurunjang Community Hub features a teaching kitchen, edible garden and classrooms, which will provide opportunities for learning to students of the Kurunjang Primary School, Kurunjang Seocndary School and Heathdale Christian College, located in Kurunjang, together with the larger Kurunjang community.
As median house prices in the elite inner suburbs have dropped, the property market in outlying suburbs have proved resilient, with Kurunjang being the top performer for the December 2018 quarter, showing growth of more than 17 percent.
The median house price in Kurunjang is around $442,000 at this stage, which should still be exciting news for prospective buyers looking to find property in an established suburb.
The five most affordable suburbs in Melbourne, Victoria provide ample opportunity for homebuyers and renters looking to slow down the pace while doubling up on investment opportunity.
Melton, Melton South, Millgrove, Cobblebank and Kurunjang are all great locations for first-time or investment buyers to acquire a property that holds great potential for return on investment in the next few years, especially after an influx of new residents – the western urban area of Melbourne is expected to reach 60,000 people in the next few years – brings further development to these suburbs.
Already, many areas are starting to add to the recreational and entertainment offering for residents, while many of these suburbs already have established amenities and facilities.
Median house prices in Melton stand at $389,190 in Melton, at $404,812 in Melton South, at $419,830 in Millgrove, at $434,888 in Cebblebank, and at $436,026 in Kurunjang, according to the Aussie and CoreLogic 2019 Most Affordable Suburbs report.
Affordable home prices mean that this area is likely to be keenly watched by property enthusiasts in the next few years, but when is the right time for you to buy?
Speaking to a real estate agent that understands the property market they do business in is the first step on your journey to buying your first home. Let Perfect Agent recommend an agent you can trust – our comprehensive list of real estate agents all over Australia is sure to have your perfect fit. Contact Perfect Agent today.