Melbourne house prices: 20 suburbs where homes are selling for $600k or less

First-home buyers can still snag a home for $600,000 around the city, as experts reveal the suburbs with the small price tags that could be undervalued.

First-home buyers can still snag a home for $600,000 around the city, as experts reveal the suburbs with the smallest price tags that could be undervalued.

With stamp duty abolished for first-home buyers purchasing a home for $600k or less, PropTrack sale price data has shown that just 20 Melbourne suburbs have a median price under that price point.

RELATED: 15 suburbs where homebuyers are in best place to negotiate

Property investor data provider Suburb Data ranked the Melbourne regions among the best in the nation, based on demand-to-supply values.

12A Shelbourne Court, Meadow Heights is for sale with a $550k-$580k price guide.

Their latest figures show where prospective homebuyers can find the city’s best deals are Coolaroo and Campbellfield, where median home values are $535,500 and $615,000.

The firm scored each area out of 100, with higher marks meaning more demand compared to supply, resulting in a greater chance of future price growth.

Undervalued suburbs are often more affordable than nearby areas, have similar house and unit prices and can be at a point where growth is likely after a period of stagnation.

Suburb Data analyst Jeremy Sheppard said “undervalued” suburbs would likely see imminent price rises because houses there were better value than surrounding areas and were “due to catch up growth”.

“You can buy with a lot more confidence in an undervalued market because once buyers recognise that better value, demand goes up and prices go up,” he said.

Buyer’s advocate Emily Wallace said once home buyers looked at suburbs beyond Melbourne’s Ring Road, there was a lot of value present.

For first-home buyers, Ms Wallace said Sydenham and Coolaroo had great amenities and were quite established.
She added that across the city, many properties on the market had only been purchased in the last couple years, but prospective purchasers shouldn’t be alarmed.

7 Hickory Crescent, Frankston North is priced at $530k-$580k.

“Don’t be turned off and don’t immediately mark them as red flags; investors are selling up and first-home buyers are getting in,” she said.

Ms Wallace said there could be an opportunity for a deal to be made, so it was always good to ask what the seller’s situation was.

But the Victorian government has also been blamed for shunting some of Melbourne’s once thriving suburbs, with Suburb Data figures also revealing the city’s most overvalued areas.

—with Brendan Casey

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Originally published as Melbourne house prices: 20 suburbs where homes are selling for $600k or less