Looking for an affordable property? Our list of the top 10 affordable suburbs in Victoria right now might help you.
The Victorian property market is still forging ahead despite the COVID-19 virus and related impacts on the Australian economy. House prices have recorded strong growth over the past year, despite some softening over recent weeks due to the extension of lockdown restrictions. Despite this, there are still areas where bargains can be found, and if you have a long-term strategy, you can still expect solid capital growth over the next few years.
Mortgage rates are still close to the lowest on record, and there are some opportunities for those with good savings and a level of employment security. In addition, the current ultra-low interest rates have created a unique environment where buying a house in many areas of the state is cheaper than paying rent.
First home buyers are still active in the market and are competing with investors for low levels of stock. More affordable areas have been sharply in focus as the number of first home buyers in the market has recently surged to decade highs, and this trend is expected to continue.
RiskWise Property Research has undertaken an in-depth analysis of the housing market, identifying Victoria’s top 10 affordable suburbs. The report indicated that detached houses represented solid buying opportunities for those with long-term strategies.
There are decent opportunities for buyers looking for houses with high land value as a proportion of the property, and a strong component of scarcity, especially if they intend to hold on to the property for several years or longer. There are cheaper suburbs in more distant or less favoured locations, but buying in the lowest quartile of the housing market can sometimes come with its challenges and risks.
The top 10 suburbs for affordable houses in Victoria
The top 10 suburbs for affordable houses in Victoria included a range of suburbs at around 70% of the captial city’s median house price.
|Suburb||Postcode||SA4 Area||Distance from the CBD||Median Price||Median Capital City Price||1-Year Growth||5-Year Growth|
|Hampton Park||3976||Melbourne – South East||36km||$599,223||$908,239||9.9%||52.0%|
|Delahey||3037||Melbourne – West||20km||$624,141||$908,239||9.8%||45.5%|
|Koo Wee Rup||3981||Melbourne – South East||63km||$644,578||$908,239||12.2%||69.1%|
|Sunbury||3429||Melbourne – North West||34km||$645,441||$908,239||11.6%||62.3%|
|Cranbourne North||3977||Melbourne – South East||42km||$658,970||$908,239||11.4%||56.7%|
|Carrum Downs||3201||Mornington Peninsula||37km||$681,005||$908,239||17.0%||67.9%|
|Sydenham||3037||Melbourne – West||22km||$686,800||$908,239||8.6%||44.5%|
Despite strong price growth over the past year, several suburbs in Mornington and Geelong still made it on to the top 10 list, with house prices in these suburbs coming in between $600,000 and $700,000 compared to Greater Melbourne’s median house price around $900,000.
The Mornington region has been a massive drawcard to home buyers seeking a lifestyle. As more people can work remotely, the area is gaining even more of a reputation as having good buying potential.
Cranbourne North is located about 40 kilometres south-east of Melbourne and still has a median house price of well under $700,000, despite recording robust price growth of 57% over the past five years.
Melbourne’s outer western and south-eastern suburbs offer relatively more affordable properties with good access to the Central Business District, which is crucial for home buyers.
However, while this is the case for houses in these areas, units continued to carry a materially higher level of risk, on average, as rental vacancy rates have increased.
Interested in finding out what the top ten suburbs in another state are?
Check out the top 10 affordable suburbs in New South Wales
Check out the top 10 affordable suburbs in South-East Queensland
Check out the top 10 affordable suburbs in South Australia
Check out the top 10 affordable suburbs in the Australian Capital Territory