New growth areas: suburbs yet to peak

Date: 2 Jan 18

While Melbourne’s property market experienced strong price growth in 2017, new REIV data reveals there are new-growth-areasFINAL.jpgstill affordable opportunities within 20km of the CBD.

In the September quarter, more than 30 suburbs in the city’s middle ring had yet to reach the citywide median house price of $817,000.

Located almost exclusively in the city’s north and west, a number of these suburbs are within 13km of the CBD including Albion ($665,000), Sunshine North ($670,000) and Heidelberg West ($726,500).

Other areas expected to see strong future price growth include Fawkner ($740,500), St Albans ($631,750) and Meadow Heights ($487,625). 

REIV President Richard Simpson said that despite many of these suburbs experiencing double-digit price growth in the past year, the west and the north had yet to peak in terms of price growth.

“Buyers on a budget should consider suburbs in the city’s north and west, with these areas continuing to offer value for money without the need to compromise on proximity to the CBD.”

“Gentrification is certainly improving the attractiveness of these suburbs, with homes in the city’s middle ring poised for significant long-term growth.”

“Melbourne’s south and east have already experienced remarkable price increases over the past decade; however buyers are now looking for new growth areas to enter the market.”

“Many of these suburbs will also benefit from new road and rail infrastructure commitments by the State Government, driving price growth in the north and west.”

“Until this infrastructure is in place, these suburbs continue to offer more affordable entry points to the property market.”

Mr Simpson added that Maidstone ($815,000) is the only suburb in the city’s inner ring with a median house price below the metropolitan Melbourne median.