Often, buyers looking to buy a house or unit limit their search to a handful of known suburbs, blissfully unaware that some great alternatives may be available. The perfect place might be right under the buyer’s nose, or in this case, in the next suburb. Sometimes, lesser renowned suburbs can share a border with a more sought-after counterpart and offer significant discounts compared to their better-known “sibling.” Using the quarterly medians for June 2024, the REIV has taken a deeper dive into where to grab a bargain by looking at what is on offer just down the road.
Inner ring
Located within Melbourne’s inner ring of suburbs, Toorak is a repeat contender for some of the most elegant and desirable houses in our capital’s market. Situated in Melbourne’s leafy east within the prized City of Boroondara, Toorak maintains Victoria's highest median house price at a breezy $4,800,000. However, neighbours Burnley and Prahran are remarkably cheaper than their high-flying eastern counterpart. Burnley and Prahran recorded median house prices of $1,370,000 and $1,715,000 and sport a price reduction on Toorak of 71.5% and 64.3%, respectively. Replete with excellent public transport, diverse food and drink options, and pet-friendly green spaces galore, Burnley and Prahran offer great value whilst being in the company of some of Melbourne’s most desirable real estate.
For out-of-sight bargains on units within Melbourne’s inner ring that shine next to their more costly neighbours, look no further than the circle of suburbs around Albert Park. The lakeside neighbourhood is an esteemed area with an accompanying median unit price of $1,220,000. Comparatively, the surrounding beachside spots St. Kilda, St. Kilda West, South Melbourne, and Middle Park recorded median unit prices of $532,000, $577,500, $608,000, and $705,000. These amount to reductions of 56.4%, 52.7%, 50.2%, and 42.2% off Albert Park’s exclusive asking price, albeit with the same convenient access to beaches, restaurants, and shopping strips that make their exclusive neighbour so attractive. Moreover, if you don’t mind living in the thick of it, Melbourne’s CBD offers a median unit price of $490,000, reflecting a 59.8% discount on Albert Park’s median unit price. At under half a million dollars with the same perks as a million-plus median price unit down the road, there are excellent alternatives to one of the inner suburbs’ most glamorous locales, proving that entry-level prices still exist all around the world-famous motorsport lake.
Middle ring
In Melbourne’s middle ring of suburbs, Heidelberg is famed for its art movement history, expansive parkland, and central commercial precinct. Understandably, it has become an alluring prospect for aspiring homebuyers from young families to retirees and, in turn, attracts a formidable median house price of $1,405,000. Though imposing, it is a considerable hike on some of its bordering semi-bushland locales that offer a similar appeal without the intimidating price tag. Viewbank and Heidelberg Heights, to Heidelberg’s northwest and northeast, are appreciably more affordable. The median house prices in these suburbs are $205,000 and $404,000 cheaper than their more established sibling, accounting for price markdowns of 14.6% and 28.8%, respectively. Just as close to the famous art gallery Heide and with golf clubs and river walks aplenty, these two less well-known suburbs stand out on their own.
Brighton and its adjacent Brighton East are perhaps the epitome of status suburbs, even at their reduced unit price point compared to a house in the area. If you’ve ended up downsizing in one of the two, with their median unit prices of $1,322,500 and $1,350,000, you’ve most definitely made it. However, just next door, Gardenvale offers a cozy location with the nearby beach surrounds, a comfortable proximity to Melbourne’s CBD, and the delights of the booming bayside shop offerings. Furthermore, with a median unit price of $480,000, it is 63.7% and 64.4% cheaper than Brighton and Brighton East, respectively. Gardenvale has a dedicated train station, an understated commercial strip, and access to everything the elite bayside suburbs offer. The only thing missing is the hit to the hip pocket for those looking at smaller housing options.
Outer ring
Some will say that the west is the best. Point Cook has received significant press for its hotly in-demand housing market, attracting investors and families from across the city. With its proximity to shopping vicinities like Sanctuary Lakes Shopping Centre, access to the Bellarine Peninsula further down the coast, and surging home values that continue to impress local homeowners, the suburb in Melbourne’s outer west is a bona fide success story. Unsurprisingly, it commands a significant price for living there, with the median house price coming in at $760,000. However, this misses the full story of the wider area. Numerous suburbs surrounding Point Cook offer the same excellent access to transport links, wetlands and parks, and safe, tight-knit communities, all while offering a reduced entry point for buying. Median house prices in Laverton, Werribee, and Hoppers Crossing came in at $576,000, $605,000 and $616,000, amounting to discounts of 24.2%, 20.4%, and 18.9% off Point Cook’s median asking price, respectively. What these suburbs may lack in name recognition, they certainly make up for in value for money.
Melbourne’s deep southeast is a buzzing pocket for housing activity, with demand from owner-occupiers, investors, and renters alike. In recent years, Keysborough has become a hot ticket item, with the median unit price climbing to a stately $775,000. With its access to all the local amenities, including trains, shopping centres, markets, and the perfect gateway through to Lysterfield Park and South Gippsland, Keysborough has plenty on offer. However, the median unit prices in Keysborough’s adjacent suburbs offer a friendlier price point for many. Dandenong, Noble Park, and Springvale South hug the northern border of Keysborough yet come in 42.3%, 27.9%, and 23.2% cheaper than their prominent southern neighbour, recording median unit prices of $447,500, $559,000 and $595,000, respectively. With the same excellent access to beaches and bush, buyers can save substantially by looking a little further north.
Geelong
Geelong has been one of the nation’s most coveted regional cities for some time now. Its positioning as the middle point between Melbourne and the expansive length of the Great Ocean Road and its excellent education, healthcare, and cultural precincts have made it an attractive option for buyers from across the spectrum. As this demand has accelerated, the real estate prices have followed. Connewarre, just south of the Geelong CBD on the bay, now commands a median house price of $2,192,500, placing it out of reach for many aspirant homeowners who want to move to the area. However, to Connewarre’s west and north are unsung Mount Duneed, Leopold, and Armstrong Creek. With the three offering median house prices of $715,000, $680,000, and $675,000, amounting to discounts of 67.4%, 69%, and 69.2%, Connewarre’s neighbours give great value by the beach without the mammoth mortgage commitments.
Newtown’s impressive median unit price of $599,000 signifies the strength of the central Geelong housing market, with its proximity to public transport links, nightlife, and Bellarine’s beaches driving demand. However, around Newtown, bargains can be found with the same upsides. Belmont, Manifold Heights, and Herne Hill are all comfortably close to the same attractive features that have driven Newtown’s popularity sky-high. However, their median unit prices of $531,250, $452,500, and $385,750 provide discounts of 11.3%, 24.5%, and 35.6% on Newtown’s purchasing costs. With many of the same conveniences and little reason to blow out the budget more, these growing pockets of Greater Geelong offer excellent value in one of Australia’s fastest-growing regional centres.
Regional
More regionally, it’s understandable why Lake Wendouree would be a premium pastoral destination. Located in central Ballarat in Victoria’s Central Highland, the median house price of Lake Wendouree slides landed at $1,185,000. Situated on the stunning urban lake that generously provided its namesake, the suburb is surrounded by some of the regional city’s best educational, healthcare, and parkland offerings. Far more affordable suburbs still dot the lakeside for those wanting proximity to those lifestyle options and amenities. Alfredton, Newington, and Wendouree, all surrounding the grand body of water, have median house prices of $630,000, $590,000, and $435,000. Offering discounts over their more famous picturesque counterpart of 46.8%, 50.2%, and 63.3%, these suburbs present opportunities for those looking for a change of scenery in the countryside.
Bendigo, north of its Victorian goldrush counterpart Ballarat, offers affordability and lifestyle appeal. Importantly, it has bargains galore close to the town centre. Though Bendigo CBD’s median house price is higher at $600,000 due to its centrality, the inner suburbs of East Bendigo, North Bendigo, Ironbark, and Long Gully offer significant discounts on the main street at $505,000, $492,500, $485,000, and 445,000. Coming in at 15.8%, 17.9%, 19.2%, and 25.8% cheaper, respectively, they give Victoria’s fourth-biggest city a budget-friendly appeal. Bendigo continues investing in and developing its health, finance, education, and art scenes alongside its ample local employment opportunities. As such, the commutable tourism locale’s housing options, with their growing appeal and inexpensive opportunities, have put the historical city on the regional map.
Suburb Scout
As the REIV gears up to release its new Suburb Scout tool, we’ve looked back at some of our critical data. Once launched, Suburb Scout will allow members to pick a suburb of their choice and select features such as the price range and number of bedrooms to identify similar properties across Victoria. This innovative new tool will give agents unique insight into the property market and help them guide their clientele in making informed real estate decisions.
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REIV: media@reiv.com.au 03 9205 6607