The Real Estate Institute of Victoria (REIV) median house price data shows there are still many suburbs offering those with limited budgets a foothold in the property market.
According to the data, suburbs such as Melton provide properties for less than $300,000 and several suburbs, including Frankston North, Melton South and Millgrove, recorded a median below $250,000 in the first three months of this year.
Others on the affordable list were: Wyndham Vale, Hoppers Crossing, Truganina, Carrum Downs, St Albans, Pakenham and Craigieburn.
Many of these suburbs have newer amenities, according to the REIV, and more open space than suburbs closer to the CBD.
“The only reason for the slower price growth to date has been their distance from the city centre. Yet prices remain relatively low in comparison to the current Melbourne median house price of $652,500,” the report reads.
These suburbs also provide an excellent grounding for investors to boost capital gains through renovations.
“Thornbury is a perfect example. Previously an affordable area, its period homes have been renovated as young families have moved into the area, and its median house price has grown from $323,000 in 2002 to $850,000 today,” the report said.