Bang for your buck: Melbourne's most affordable suburbs

Date: 28 Jul 16

While Melbourne’s property market remains strong, new REIV quarterly data shows savvy buyers can still getaffordable-suburbs.jpg a foothold on the property ladder for a fraction of the city’s median house price.  
 
In the three months to June 30, Melton West was Melbourne’s most affordable suburb with a median house price of $331,000 – less than half the citywide median of $725,000.
 
South west of the CBD, Werribee offered buyers value for money with a median house price of $355,000.
 
Buyers looking to enter the market for less than $400,000 could do so in a number of suburbs including Cranbourne ($380,000), Wyndham Vale ($385,000) and Pakenham ($393,000).
 
REIV CEO Geoff White said record low interest rates and a strong market was driving price growth in areas further from the city.
 
“These areas continue to offer value for money with all of the top 10 most affordable suburbs experiencing solid capital growth in the past year,” he said.
 
Other areas pinpointed by the REIV were those where a quarter of all sales are at a highly affordable level - $420,000 or below. These “lower quartile” suburbs include Caroline Springs, Frankston, Craigieburn and Mernda, where properties can be bought well below the median price in each suburb, of up to $500,000.
 
Mr White encouraged buyers looking for high-value, affordable homes to look at lower priced homes across the city.
 
“While the suburb’s median house price may be out of your budget, finding the right home is important,” he said. “Houses with renovating potential or slightly smaller properties in good suburbs offer great buying in the current market.”
 
Mr White added that affordable suburbs had performed well over the past 12 months, with four of the top 10 most affordable suburbs delivering double digit growth.