Melbourne suburbs scored out of 100 reveal the best and worst areas to buy | Finder Property Investment Index
Experts are pointing Melbourne homehunters to a shortlist of six star suburbs, but also revealed ones that could cause long-lasting financial woes. SEE THE BEST AND WORST MAPPED
Property
Don't miss out on the headlines from Property. Followed categories will be added to My News.
Experts are pointing Melbourne homehunters to a shortlist of six star suburbs, but warn a dud decision could cause long-lasting financial woes.
Houses in Seaholme, Brunswick East and Heidelberg were named in Finder’s new Property Investment Index as the best bet for buyers and savvy investors looking to make a motza.
But it also warned the budget conscious might want to steer clear of some of the city’s most affordable suburbs — including Garfield and Melton South, where price growth could struggle in the near future.
RELATED: 50-year loans? Big banks discuss future of mortgages
Melb suburbs where most new homes will be built by 2029
Listed: All the winners from this year’s Houses Awards
More than 500 Melbourne suburbs and areas have been given a score out of 100 by the online comparison site, which based their analysis on market demand, population growth and historical price data.
For houses, Seaholme scored in the 90s, but for units, Melton and Melton South on the outskirts of the city were cause for concern at under 50.
Ferny Creek, West Melbourne and Coburg have also been tipped as hotspots for prospective househunters with budgets under $1.5m, while those after a unit should look towards Diamond Creek, Bentleigh and Brunswick West.
With home price growth weaker across Melbourne than almost every other capital in the past year, buyers heading to the wrong suburbs could be facing a long wait for things to turn a corner.
See What Your Suburb Scores: Houses
See What Your Suburb Scores: Units
Finder head of consumer research Graham Cooke warned that prices could go either way, so it was important to invest in areas that had high-price resilience.
“With property investing, you don’t really know what’s around the corner. Nobody saw Covid-19 coming. Nobody saw the war in Ukraine coming, which were two things that have affected inflation so heavily,” Mr Cooke said.
“Generally (being) closer to the city is more reliable.
“The more research you do, the more cautious you are, the less risk you have further down the line.”
For those looking to purchase either a house or an apartment, Mr Cooke said the old adage of “location, location, location” rang true.
“The closer the house is to the centre of the city, the closer it is to transport, a train station, schools, all those types of things, the higher the value of the house will be,” he said.
“If you are looking for an apartment, try to find somewhere which has a price you can afford, close to the city with less density of other apartments around it is probably the golden egg.”
He noted that property investors should also be very cautious of interest-only mortgage loans in the current environment.
“With an interest only loan, you’re not paying off any of the principal and if property prices do go down, then you will very quickly end up in negative equity,” he said.
The Property Bureau director Alastair Mairs said for investors and homebuyers alike, parking was a non-negotiable if they were looking to purchase an apartment or unit.
“Melbourne’s traffic is just getting worse daily; even if you don’t drive, you don’t want to drive, or you can’t drive, it’s all about your resale,” Mr Mairs said.
“Also, a balcony. Just some sort of an ability to open up, get some fresh air and natural light.”
He added that no matter what type of property a prospective buyer purchased, if it was a “stepping stone” it had to perform.
Mr Mairs said many investors had lost money purchasing in modern high-rise buildings or new builds with no scarcity to them or with building issues.
Best Suburbs To Invest In: Houses
Rank - Suburb - Median House Price - Suburb Score (/100)
Seaholme - $1.4105m - 92.1
Brunswick East - $1.420m - 86.3
Heidelberg - $1.475m - 86.1
Ferny Creek - $1.114m - 85.7
Hawthorn East - $2.66m - 85.4
Ivanhoe East - $2.383m - 84.6
Best Suburbs To Invest In: Units
Rank - Suburb - Median Unit Price - Suburb Score (/100)
Ashburton - $1.442m - 94.7
Fitzroy North - $870,000 - 89.5
Surrey Hills - $950,000 - 89.2
Heidelberg - $769,100 - 88.9
Diamond Creek - $790,000 - 88.1
Worst Suburbs To Invest In: Houses
Rank - Suburb - Median House Price - Suburb Score (/100)
Garfield - $676,000 - 43.2
Melton - $475,000 - 43.9
Melton West - $547,500 - 44.7
Melton South - $484,500 - 44.7
Mount Cottrell - $682,000 - 45.7
Worst Suburbs To Invest In: Units
Rank - Suburb - Median Unit Price - Suburb Score (/100)
Melton South - $362,000 - 43.2
Junction Village - $395,000 - 45
Melton - $370,500 - 47.1
Hoppers Crossing - $449,000 - 47.1
Meadow Heights - $447,500 - 48.7
Source: Finder
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: Hotel gurus selling Vic ski lodge with $4.75m view
Aussie circus performers may have found solution to housing crisis
Tiktok influencer’s brash squatting ploy slammed
sarah.petty@news.com.au
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!