Melbourne’s fastest-selling suburbs for properties under $500,000

BUYERS are snapping up affordable properties in some parts of Melbourne after little more than a few weeks on the market. See which suburbs are selling fastest.

Allan Williams, 57, recently sold his mother's house in Berwick, for $435,000 after about five days on the market. Picture: Sarah Matray

FIERCE competition for affordable homes has created an express lane on Melbourne’s property market.

Houses under $500,000 are snapped up quickest in the outer eastern suburb of Mt Evelyn, where it takes an average 19 days to clinch a sale.

Buyers are also striking fast in Coolaroo and Narre Warren, where houses under $500,000 spend an average 24 and 26 days respectively on the market, latest CoreLogic figures show.

This compares to the Melbourne-wide average of 54 days on the market for houses under $500,000.

But agents report the sales dash can take as little as 24 hours, as buyers who have missed out previously pounce and boost their offers.

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Southeastern suburbs Berwick, 28 days, and Carrum Downs, 27, were also among the city’s top 10 for fastest selling affordable houses in the year to May.

O’Brien director Dean O’Brien said competition was fierce in Narre Warren and Berwick as low interest rates and strong returns motivated investors to hold on to and expand their portfolios.

“Which is causing our first and second homebuyers to compete with investors as well based on the Narre Warren area offering great returns for investment properties,” he said.

The average days on market for affordable Narre Warren houses dropped by 18 from the year before, when 56 more sales were recorded.

Ten fastest-selling suburbs for properties under $500,000.

“Demand has doubled for properties under $500,000 in the past 12 months,” Mr O’Brien said.

Allan Williams recently sold the three-bedroom house at 15 Adelaide Close, Berwick, for $435,000 for his mother, who was relocating to an assisted care facility, in about five days.

He said the pace was helpful and the sale achieved more than the desired result.

“It did exceed our expectations ... … we needed to get the bulk of that money over to where mum is and get that paid for,” Mr Williams said.

O’Brien agent Paul Rogers said an investor secured the home and five offers were made.

Professionals Methven agent Ben Weeks said homebuyers were also battling increased competition in Mt Evelyn, where the average days on market fell by 26 from the past year.

“There’s really strong demand now from not just homebuyers but investors are creeping into the area now as well,” he said.

Large block sizes and a landscape that wasn’t built up combined with affordability to make the suburb desirable, Mr Weeks said.

Melbourne-wide, there were 6,360 less house sales under $500,000 in the year to May than the same period a year earlier, and the average days on market reduced from 65 to 54.

CoreLogic senior research analyst Cameron Kusher said falling time on market figures reflected an increasingly competitive property market.

“As prices are rising the supply of more affordable housing stock is reducing, a trend which is likely to continue,” he said.

“Subsequently, the demand at the lower end of the market is increasing as supply reduces, leading to faster rates of sale.”

@scottcarbines