Buyers on track for significant savings

Analysis of new REIV median house price data shows savvy buyers can save a six-figure sum by purchasing in the next suburb along the train line.

In the September quarter, the Belgrave line recorded the largest price difference between stations with Canterbury’s median house price ($2,875,000) almost a million dollars more expensive than those serviced by the Chatham station in Surrey Hills ($1,930,000). The distance between the two stations is less than a kilometre.

Significant savings of $896,000 were also possible for buyers who purchased a home in Heidelberg, rather than the previous suburb on the Hurstbridge line, Eaglemont. 

Meanwhile, buyers willing to spend a few more minutes on the South Morang line could save around $600,000 by purchasing in Thomastown instead of nearby Thornbury, serviced by the Keon Park railway station. 

At the more affordable end of the market, commuters were able to save more than half a million dollars by purchasing one stop further along the Werribee train line in Laverton, rather than Westona.  

Buyers were also able to enter the market in Noble Park on the Pakenham line for $142,500 less than the previous suburb of Springvale, serviced by the Sandown Park station.

REIV President Richard Simpson said a number of city locations delivered significant six-figure savings when compared with the median house price in the previous suburb on the train line.

“Many of these areas are only one or two kilometres further from the city but provide a more affordable alternative for those who may have their heart set on buying in a particular suburb.”

“Areas that offer value without the need to compromise on location or amenities are highly attractive to buyers, with many of these bridesmaid suburbs also experiencing solid capital growth in recent years.”

“The majority of inner and middle suburbs now have a median house price above $1 million, which is resulting in increased competition for homes further from the CBD.”

“Homebuyers willing to commute for a few extra minutes each day are able to consider a greater number of suburbs, including new growth areas which may not have peaked in terms of price growth.”

“Access to public transport is a key factor for many buyers, and can increase the value of a property.”