Bridesmaid suburbs can deliver a seven-figure saving

Date: 15 Feb 18

Bridesmaid suburbs bordering some of Melbourne’s most exclusive neighbourhoods are offering buyers the bridesmaid-suburbs-pic.jpgopportunity to purchase a house for a fraction of their median price. 

New REIV data reveals multiple areas where buyers can make a significant saving by purchasing in the adjacent suburb, without needing to compromise on amenities or services. 

Buyers priced out of the inner city suburb of East Melbourne – where the median house price is currently just under $4 million – can save $2.7 million by purchasing in neighbouring Collingwood – one of the city’s largest price differences. 

A seven-figure price difference was also seen in Toorak, where buyers priced out of the $4,475,000 suburb can buy in nearby South Yarra for a median house price of $1,856,000.

With a median house price of $731,000 Heidelberg West was a more affordable option than nearby Ivanhoe where buyers needed $1,580,000 to get into the market – a 116 per cent difference.  

In the city’s outer suburbs, buyers could purchase a home in Hallam ($594,000) for almost half the price of those in nearby Narre Warren North ($1,141,500). 

REIV President Richard Simpson said it’s important that buyers are flexible when house hunting as next-door suburbs typically offer good value. 

“For buyers priced out of their preferred location, surrounding suburbs can deliver similar lifestyle and amenities for significantly less.” 

“Many of these traditional ‘bridesmaid’ suburbs have experienced strong price increases in recent years, as buyers look for new growth areas to enter the market.”

“Buyers priced out of premium locations have caused a ripple effect across the city with price growth being experienced in suburbs which were once considered unattractive.”

“While these next-door suburbs remain considerably more affordable than their premium counterparts, future price growth in these areas is expected.”

“A suburb with a median house price well below that of its neighbours offers an affordable entry point to an area which may otherwise be out of reach.”