Best affordable suburbs in Melbourne for 2018

26 FEB 2018 By Bianca Dabu 10 min read Investor Strategy

Melbourne, the state capital and most populous city of Victoria, continues to be one of the strongest markets across Australia. What are the best suburbs to buy in Melbourne this 2018?

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Often considered as second to Sydney in terms of market performance, Melbourne has seen an impressive 72.4 per cent dwelling value growth over the last decade, according to CoreLogic.

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This growth in value has lead to increased prices in several suburbs.

According to Real Estate Institute of Victoria’s (REIV) Richard Simpson: “While price growth slowed in the December quarter due to increased supply and reduced investor activity, 2017 was a record-breaking year for Melbourne’s property market.”

“High levels of interstate and overseas migration, new government initiatives for first home buyers and record low interest rates have contributed to significant double-digit price growth last year,” he added.

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However, investors and home buyers alike can still find good opportunities to purchase properties in the capital city without breaking the bank.

In fact, CoreLogic’s data states that there median prices in certain suburbs went as low as $400,000 by the end of 2017.

Meanwhile, the REIV recorded a median price as low as $387,000 in some parts of the city.

Here are some of the most affordable Melbourne suburbs poised for growth this 2018:

  • Millgrove, Yarra Ranges — $333,563
  • Melton, Melton — $347,894
  • Melton South, Melton — $363,768
  • Kurunjang, Melton — $370,940
  • Lang Lang, Cardinia — $371,927
  • Rockbank, Melton — $395,107
  • Melton West, Melton — $400,439
  • Diggers Rest, Melton — $409,324
  • Garfield, Cardinia — $413,669
  • Koo Wee Rup — $416,162
  • Wyndham Vale — $500,000
  • Werribee — $511,250
  • Sunbury — $520,000
  • Pakenham — $520,000
  • Cranbourne West — $526,500
  • Tarneit — $542,500
  • Cranbourne — $550,000

Millgrove, Yarra Ranges, located 60km to the east of the CBD, is currently dominated by first-home buyers who seek affordability, property professional Chris Lord said.

Over the past year, Melton has experienced its strongest growth in the last decade and it’s expected to continue growing following land releases and the opening of new estates, according to agent Sean Tan.

Investors in Rockbank, Melton will benefit from the improving infrastructure, Mr Tan said, and likewise, Melton West has also seen an improvement in infrastructure, including the establishment of new estates such as Willandra.

 

This information has been sourced from the CoreLogic, the Real Estate Institute of Victoria, and The Smart Property Investment website.

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