Victoria’s budget ‘burbs set to boom: Hotspotting.com.au’s Terry Ryder

Affordable suburbs across Victoria have been tipped for a home price uptick in 2024. Find out where respected property pundit Terry Ryder is expecting good things in the new year.

Budget ‘burbs from Meadow Heights to Seymour and the “extreme growth corridor” of Melton South have been tipped to be among Melbourne’s best property earners in 2024.

Units in Carlton, Clayton and the CBD, are also in the mix after recent strong sales activity and other positive markers that normally lure investors.

Outside of the big smoke, Long Gully in Bendigo, Corio in Geelong, Traralgon in the Latrobe Valley and Mooroopna in Shepparton are also expected to deliver bang for buck after lagging in 2023.

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Respected property pundit and Hotspotting founder Terry Ryder said Melbourne had evolved from a struggling market to showing continuously successful quarters despite rising interest rates.

“Sales activity has increased enormously this year (in Melbourne); it was struggling at the start of the year, but now you could almost call it a booming market,” Mr Ryder said.

Pointing to Carlton as an example, he said the suburb’s $340,000 median unit had helped it record a rising number of sales every quarter for the past year, including 125 that changed hands in three months to September 30.

3 Belar Court, Meadow Heights, could be yours for $500,000-$550,000 and worth even more in a year’s time.

Even with 71 per cent of the suburb’s residents renting, the typical unit was returning $23,800 (7 per cent) a year for investors after a 21 per cent increase in the past year — which could drive demand and help future sales for homeowners too.

Nelson Alexander sales director Nick West said with proximity to universities and lifestyle amenities it was perennially popular.

Another affordable option primed for growth is Meadow Heights, which Mr Ryder said has “a lot of new population growth”.

“There’s land for new estates, there’s improving infrastructure, but it’s about affordability for people,” he said.

“Where can you go and get a home at a price that ordinary families can actually afford; these are the areas where they can find it but still be well connected to jobs and to important infrastructure.”

50 Turf Club Blvd, Melton South, has been listed for $639,000-$669,000.

“(It’s) certainly affordable in terms of buying a house for $500,000 which probably gets a two or three bed, two bath, one car on probably a half block,” Ms Wallace said.

Outside of Greater Melbourne, Mr Ryder said Geelong’s property market had reported “double-digit” annual price growth in recent years and was still affordable by Melbourne standards.

“Corio has a median house price of just $540,000 and offers investors a rental yield of 4.4 per cent – the highest in the Geelong housing market,” he said.

“Its unit market is even more affordable with a median of $400,000 and a yield of 4.7 per cent, making it an enticing location for investors, particularly with a vacancy rate of just 0.8 per cent.”

2 Cunneen St, Long Gully, has a $440,000-$480,000 asking price and gives an idea of what the suburb has to offer.

Harcourts Hume director Con Lonigro said besides the fact that Meadow Heights was affordable, it was close to plenty of amenities in its surrounding suburbs.

“Meadow Heights hasn’t hit its peak yet, it’s still affordable; it’s one of those suburbs that hasn’t had its time to shine,” Mr Lonigro said.

Buyers agent Emily Wallace said another suburb worth noting for property investors was Melton South as it was an “extreme growth corridor” as well as being a place where she had invested herself.

But Mr Ryder warned that despite Victoria having the strongest economy of anywhere in the country, the biggest risk for property investing in the state was the actions of the state government continually “slugging” investors with new or higher taxes.

“It’s really bad for anyone who’s a tenant in Melbourne because every time they do that, more people sell up as investors and get out of Victoria,” he said.

“The state government has so massively discouraged investment that it’s going to impact on the tenant market.”

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Originally published as Victoria’s budget ‘burbs set to boom: Hotspotting.com.au’s Terry Ryder