Established Melbourne suburbs that have the most new homes on the way in next five years | PRD Research
The established Melbourne suburbs with the biggest supply of new homes on the way have been revealed, and it could be good news for anyone thinking of buying in the next few years.
Property
Don't miss out on the headlines from Property. Followed categories will be added to My News.
Melbourne homebuyers hoping for a new address within 20km of the CBD are set to get more choice than in any other capital.
The city’s pipeline of new homes slated to start construction in established suburbs within the next two years will give buyers their pick of almost 24,500 more homes in the city’s 20 busiest suburbs for developers.
PRD Research shows the next highest number nationwide is the 12,786 tallied in Sydney.
RELATED: Melbourne home price growth revealed: 306 suburbs where values rose
41,000 Victorian ex-rentals listed for sale in last 12 months: Suburbtrends
Victoria’s ‘Portaloo index’ shows where new homes are being built
Bentleigh East topped the Victorian list and the nation, with more than 3000 expected to be built there. South Melbourne was next, with 2465, followed by Richmond at 2375.
While many of the new homes expected will be units or townhouses, areas like Preston, Alphington and South Yarra all have significant numbers of new houses on the way.
The surge in new townhouses and apartments will be particularly good news for would-be buyers struggling to make headway amid interest rates at their highest level since 2011, with typical unit prices in 12 of the 20 busiest suburbs below Melbourne’s $613,000 median unit price.
“This is where you can buy where new stock is or will soon be available,” Dr Mardiasmo said.
“So if you are looking at buying in the next five years, this is where the new homes will be.
“And they aren’t places where people won’t be interested in living in.”
The economist added that developers didn’t plan projects in suburbs unless they thought they would make a profit, hinting that some of the areas with high numbers of new homes on the way could be set to absorb a sizeable chunk of Victoria’s rising population over the coming years — and potentially could have solid price growth ahead.
She added that this was also good news for tenants, as there would soon be more homes in some of the city’s most popular pockets.
However, Dr Mardiasmo said affordable options would be slim for those looking for a new house, with only Footscray featuring plans for new stand-alone residences to be built in the next few years and a median price below the $942,000 Melbourne median.
Those able to spend a bit more could find new houses in suburbs including Bentleigh East, Preston, Alphington and South Yarra.
In the busiest suburb assessed, Bentleigh East, Buxton Real Estate director Chris Hassall said even 3067 more homes on the way would be quickly absorbed by huge demand from buyers wanting to get their kids into the area’s top-performing schools including McKinnon Secondary College — which has a reputation for adding six-figures to home prices within its zone.
Mr Hassall said the area’s property market was more sensitive today than it had been, and most homes were only attracting one or two bidders at auction, but where homes had the right price advertised they were still attracting 20 groups through inspections.
“In the 23 years I have seen it, Bentleigh East has passed the test every time — it’s always been a strong suburb,” he said.
“So if and when those properties do come to market they will be very strong.”
Sally Washfield her husband and three kids have just moved into the suburb after moving out of a townhouse in neighbouring Bentleigh.
Ms Washfield said they had specifically sought out a substantial 738sq m corner block with her carpenter husband conscious they might well be able to turn the address into more homes when they were eventually ready to move on.
“We’re happy to live with it how it is, though it needs a little bit of love … and we will likely be here for quite a while,” she said.
A long list of local parks and cafes meant there was always somewhere to take the kids to help wear them out on the weekend, while the area’s schools have all been trending upwards giving them confidence that education will be a snap.
In Alphington, developer Glenvill is at the core of an approximately 3000-home addition to the suburb that still has close to 1000 homes to be built.
Glenvill Developments sales and marketing director Sam Tucker said the new housing project, which is replacing the former paper mills complex in the suburb, would take another five years to be completed.
But after that, buyers will likely struggle to get as many homes to choose from in the tightly held suburb.
“This would be the last river front development in-fill site in Melbourne,” Mr Tucker said.
He added that while demographics had varied from first-home buyers as young as 18 to downsizers aged 88, between 70 and 80 per cent had been those buying a property to live in with the minority being investors.
The sustainability and wellness-focused development will move residents into apartments in a heritage former paper mills building in September. The Fourdrinier House complex is the latest they have finished and might offer a handful of newly built homes in the next frew months.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Victorian suburbs where home prices are overvalued | Suburb data
Bizarre way Hawthorn East family doubled home value and got a $440k income stream
Moonee Ponds: Award-winning chef Shane Delia and wife Maha serve home for sale
Originally published as Established Melbourne suburbs that have the most new homes on the way in next five years | PRD Research
First look: New Coast shopping centre for surprise site
A long-empty site in a surprise location will be transformed into a retail showroom complex under fresh plans lodged with the council. FIND OUT WHERE
Revealed: How much rent you need to pay in every Qld suburb
Rents have increased again in 252 Queensland suburbs, reversing the brief downward trend recorded just three months ago. See how your suburb compares!