Melbourne suburbs where property upgraders, downsizers should make their next move

Melbourne buyers looking to make the next move up the property ladder have been handed a cheat sheet of suburbs where they can get the most bang for their buck.

The best suburbs upsizers have been revealed, with Truganina the most affordable option for mums and dads looking for a bigger home for a growing family.

Melbourne buyers on a budget looking to make the next move up the property ladder have been handed a cheat sheet of suburbs where they can get the most bang for their buck.

PRD Real Estate researchers have pegged areas to Melbourne’s north and west as the most affordable spots where families are likely to find a home with four bedrooms or more for sale.

Just over 20km from the CBD, Truganina’s $670,000 median house price made it the most affordable suburb for mums and dads seeking extra space as their kids grow.

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A four-bedroom house at 13 Barandon Court, Truganina, is for sale with a $690,000-$740,000 price guide.

Point Cook was also highlighted as a viable option for upsizing families, with houses like 16 Grosset Way up for grabs for $840,000-$880,000.

Greenvale houses are popular among family buyers.

Nearby Point Cook was also a viable option, while Epping and Greenvale to the city’s north also made the list.

PRD chief economist Dr Diaswati Mardiasmo said the areas were also close to key amenities such as schools, shopping centres and hospitals, making them attractive to family buyers.

While prices were higher for homes with four or more bedrooms, Dr Mardiasmo said the suburbs might upsize more than just a family’s lifestyle with hundreds of millions of dollars being spent to boost local infrastructure.

“You’re still taking on a lot of debt and it’s expensive to upgrade, but knowing there are projects going in gives you comfort that these areas are likely to grow,” Dr Mardiasmo said.

And with the cost of building and construction delays, she added buyers could end up paying 20 to 30 per cent extra on their initial quote for an extension or upgrade.

Mortgage Choice Williamstown broker Jonathan Lee said with the rising cost of living, families wanting to upsize were better off compromising on proximity to the city and buying a bigger home in the outer suburbs.

“Some are struggling to upsize, especially if they’ve been looking for a long time, because the impact of interest rate rises has meant their borrowing power has decreased,” Mr Lee said.

Spacious homes suitable for upsizers are found in Greenvale, such as 16 Dufton Court which has a $1.35m-$1.45m price tag.

Plenty of room for a growing family.

31 Lemonwood Drive, Greenvale, is also up for grabs for $850,000-$935,000.

Greenvale had 85 four-bedroom-plus sales, and Ray White Gladstone Park director Malek Younan said buyers were coming from Mickleham, Craigieburn, Gladstone Park and Glenroy.

“You can buy a home from $850,000 on 700sq m with two living areas so it’s great for families,” Mr Younan said.

For those ready to get out of a bigger home, the PRD research highlighted suburbs like Brunswick, Preston, Brunswick East and Richmond as the best bet for downsizers.

But Footscray was the best option for affordable apartments and units, with Dr Mardiasmo saying it had the highest number of mixed use development projects slated for 2023.

She added that for many downsizers the goal was to leave behind a five-bedroom house and embrace lifestyle living — often looking to be closer to the CBD and entertainment options.

Footscray was the best suburb for downsizers, with apartments such as 4/158 Barkly Street, Footscray, in the old Royal Hotel for sale for just $330,000-$350,000.

This spacious two-bedroom apartment at 13/93-103 High St, Preston, is up for grabs with a $525,000-$575,000 asking price.

Also in Preston, a two-bedroom unit at 4/2 Myrtle Grove is for sale with a $700,000-$750,000 price guide.

“And apartments and units are more secure, plus you don’t have to worry so much about maintenance,” Dr Mardiasmo said.

Real Estate Buyers Agents Association of Australia president Cate Bakos said downsizers should look for homes near amenities such as shops and public transport.

“And older downsizers will want to be near hospitals and medical care, as well as their kids and grandkids,” Ms Bakos said.

Jellis Craig Northcote agent Stephanie Lentini said Preston was popular among downsizers as there was enough access to amenities that they could leave their car at home.

However, she advised them to take note of body corporate fees and cladding issues when considering an apartment.

BEST MELBOURNE SUBURBS FOR DOWNSIZERS

*Based on the most affordable median unit price for first half of 2023 and the most number of confirmed/possible mixed-use or units and townhouse projects for 2023

Rank, suburb, median unit price

1. Footscray, $482,500

2. Brunswick, $500,000

3. Preston, $506,250

4. Brunswick East, $520,000

5. Richmond, $521,000

Source: PRD Real Estate

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