We’re all aware that Melbourne is facing a shortage when it comes to affordable housing, especially if you have your heart set on buying within 20kms of the CBD. However, there are still some affordable ‘hot-spot’ suburbs that fall well below the average Melbourne median price and will make it easier to help secure your next property. From the outset, you need to know how much you can really afford to spend, as this will dictate the properties available to you. However, buying in a hot spot means that you can reap the benefits of popular neighbouring suburbs, whose more expensive property values generally cause a positive outward ripple effect to the neighbouring suburbs.
5 potential “hot-spots” in Melbourne worth taking a look at
As a company who regularly try to locate “hot spot” suburbs to maximise our clients investments, we have been able to identify 5 potential hot spots in Melbourne that are well worth taking a look at when buying your next property.
Thornbury has shown an impressive 21% growth per annum over the last 22 years. Units and flats are still very affordable with an average median price of $432k. Located just 7km north east of the CBD, it has easy access to transport, an attractive lifestyle vibe and is very family friendly. The ripple effect from more expensive suburbs such as Northcote, Fitzroy and Carlton has seen Thornbury become a more financially viable and affordable alternative. It has all the right features and qualities of a prime suburb making this an ideal entry-level suburb for first home buyers and investors.
Positioned just 7km west of Melbourne’s CBD, both Spotswood and Newport has shown steady growth of 14% per annum growth over the last 22 years. It is one of the few affordable inner city suburbs left in Melbourne. Apartments and flats are still available well below the $535k median. It has very good transport connections to the CBD, with a new multi-line train station, nearby Westgate Freeway, Western Ring Road and City Link arterials. Neighbouring satellite city of Footscray is close by. You can still find older style cottages on good- sized blocks, proving popular with first home -buyers and investors. The ripple effect from wealthier suburbs such as Williamstown and Yarraville has seen both Newport and Spotswood become future hotspots.
3. Box Hill
The ripple effect from Camberwell and Surrey Hills has put Box Hill in a good affordability category. The median price for units and apartments is still relatively affordable at $467K. Located 14km east of the CBD, it is a major commercial centre and transport hub. It has excellent access to Maroondah Highway and is home to the local Box Hill Hospital. In addition to all the wonderful amenities, it is also a growing satellite city with the local council introducing further relaxed planning controls to help promote and build medium density development.
4. South Yarra
The reason why we have chosen to include the inner “blue chip” suburb of South Yarra is that prices have fallen considerably. You can now buy one-bedroom apartments well under its median price of $620k. This holds great appeal to those seeking an affordable entry in to a highly desirable location. Located just 3km south east of the CBD, you can’t go wrong with the close proximity to trendy Chapel St and Toorak Rd. Established infrastructure such as The Alfred Hospital and Swinburne University are also nearby.
Located 41km south of the CBD, Frankston is slowly becoming a major commercial, retail, educational and transport centre. This satellite city will have the Peninsula Link opening in early 2013. As a result, you will see travel time cut by up to 40 minutes between Carrum Downs and Safety Beach. The median price for a home is super affordable at $350k and apartments can be purchased at less than $270K. Close to the beach, the future development of a local Marina will also add significant value to the area. The ripple effect from neighbouring Mount Eliza and popular Mornington Peninsula Suburbs (Portsea, Sorrento and Flinders) is offering potential buyers a much more affordable option.
In summary, you can still make money in a flat market. Boom suburbs always happen for clear reasons and picking one before it becomes popular, is one of the simplest and quickest ways to make money in real estate. In fact, if you remember the following winning formula – purchase at the right price, in the right place and at the right time, you will no doubt reap good financial rewards.
With this in mind, make sure you choose under-performing suburbs and stick to affordable areas under Melbourne’s median price. Do your due diligence and research thoroughly before you buy.