Melbourne housing affordability: PropTrack reveals where to find affordable homes across the state
Melbourne’s affordability hotspots have been revealed in exclusive new data from PropTrack, including affordable options for first-time buyers. FIND OUT WHERE
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The Melton region to Melbourne’s west and apartments in the city have been tagged as homebuyers’ best hope for an achievable first-step into the property market.
PropTrack’s first ever Affordability Hotspots report found a surplus of units in the Victorian capital and a $573,000 median home price meant a couple earning the city’s $124,000 average household income could afford to buy almost a quarter of all homes available, giving them extraordinary choice — but only for apartments.
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Outside of the city centre, a region from Melton to Bacchus Marsh was the next best place for buyers – though local agents have warned the region where homes cost about $610,000 has become a homebuyer battleground with hundreds swarming real estate listings.
The report found budget buyers’ best bet for an affordable option for a typical home in the state was in regions like the Grampians, Swan Hill and Mildura where they could pay $335,000-$415,000 for a home.
Those on regional Victoria’s $87,500 average household income could afford between 19 and 38 per cent of all homes in the three regions.
PropTrack economist Paul Ryan said first-home buyers were looking for a bit of space they can afford on a tighter budget, and the Melton-Bacchus Marsh region fits the category.
“While there is relative positive affordability in the inner city in the apartment market for first-home buyers, the Australian aspiration to buy a home is pushing people peripherally across to areas like Melton and Bacchus Marsh,” Mr Ryan said.
“Compared to much of the country, Melbourne has done a pretty good job at housing affordability by building lots of new homes.
“Melbourne prices are increasing at a moderate pace; prices are up 2 per cent. It is doing better than most capital cities like Brisbane and Adelaide.“
Aussie Home Loans Melton franchise principal Aman Singh said easy freeway access and an array of schools, shops and transport options made it a convenient place to live as well as affordable one for a high number of first-home buyer couples and young families.
“When my clients are priced out of suburbs that they are looking at, I ask them if they have considered Melton,” Mr Singh said.
“Inner Melton, Harkness and Kurrajong are areas where my clients can purchase a property under half a million.”
The next best bets for buyers in metropolitan Melbourne were the north west from Tullamarine to Broadmeadows, or from Maribyrnong to Brimbank.
But the report found virtually no homes were affordable in a region of Melbourne’s outer east, making an area from Donvale to
Warrandyte and Park Orchards a virtual no go zone for first-home buyers.
No homes in the region are considered affordable for the city’s median household income.
Senior sales consultant at Hoskins Maroondah-Croydon David Alvares said the green wedge area was dominated by larger blocks and was unlikely to see apartment or townhouse development in the near future — which was part of the appeal for buyers looking for a forever home.
“Buyers managed to secure regional escape before Covid could have made much money when everyone wanted to escape Melbourne,” Ms Bakos said.
“But unless we have a black swan event, I don’t believe we will see anything like that again.”
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