Melbourne bargain hunt: Suburbs becoming a buyers’ paradise with affordable homes down the road from million-dollar postcodes
Melbourne homebuyers dreaming of edging into a million-dollar postcode need only look down the road to find a bargain this spring. SEE THE LIST
Melbourne homebuyers dreaming of edging into a million-dollar postcode need only look down the road to find a bargain this spring, as suburbs adjacent to premium addresses become flooded with affordable homes.
From Dandenong to Laverton, the city’s most overstocked housing markets are proving a purchaser’s paradise, with hundreds of homes up for grabs at the same time.
Bustling southeastern hub Dandenong is the best bet for buyers, with its $631,900 median dwelling price nearly $450,000 cheaper than buying into nearby areas including Rowville, with a $1.081m typical value and Keysborough, just shy of $1m.
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And with 2.26 per cent of Dandenong’s 4830 homes up for sale, research from SuburbData suggests the area is oversupplied and sellers will need to meet buyers’ expectations on price to get deals done.
Harcourts Asap’s Daniel Farrugia said that had made it a first-homebuyer’s paradise.
“Now the investors are selling the rentals off we’re seeing a new wave of buyers flooding into Dandenong,” Mr Farrugia said. “Businesses are moving into the Dandenong CBD, we’ve got workers commuting from Gippsland and the Bass Coast, there is so much appeal to the area.
“There’s plenty of opportunities for growth if you want to break into the market and, of course, the food.”
On the other side of the city, Laverton’s $566,300 median dwelling value, which covers both houses and units, is also well below neighbouring Altona Meadows with a typical house value of $723,800 and Seabrook with a $757,400 value.
With 3.37 per cent of the suburb’s 1762 homes for sale, buyers could do well.
In Sunbury, the 2.05 per cent of the suburb’s 13,748 residences that are currently waiting for a new owner could also give purchasers an edge.
The chance for a bargain could be even higher in Beveridge, where 7.34 per cent of all homes are for sale — one of the most oversupplied housing markets in Australia.
In Victoria, Clyde and Rockbank follow with 6.35 per cent and 6.13 per cent of homes for sale respectively.
Former buyers’ agent turned CHWYLA Doreen consultant Jim Marsh advised prospective buyers to have a long-term view if considering purchases in areas such as Beveridge, as many planned major state government infrastructure improvements were still some time away.
“Is this a long-term play for you? If you’re a first-homebuyer and only plan to stay for a few years, don’t buy here,” he said.
Eda Property founder Anissa Cavallo described the current oversupply in some segments of the Victorian property market as a unique opportunity for buyers.
“When you look at the long-term listings in Victoria, our listings are pretty stable – the data actually isn’t that bad,” Ms Cavallo said. “These oversupply suburbs present a wonderful way to pick up a bargain in the short term.”
She said infrastructure challenges in areas such as Beveridge, Clyde and Rockbank were evident, but encouraged buyers to focus on long-term growth.
“Yes, areas like Beveridge do have some infrastructure problems – real estate agents are talking about right now, not the 10-year fundamental and economic drivers that will take long term to materialise,” she said.
Ms Cavallo advised looking into Plan Melbourne documents if considering these areas, as details about plans for infrastructure might have become clearer and any change to government plans could quickly add value.
SuburbData analyst Jeremy Sheppard acknowledged potential risks for new buyers in oversupplied housing markets, but emphasised it wasn’t a widespread issue.
“Oversupply basically means there are too many homes and not enough people who want to buy them,” Mr Sheppard said. “Unless you’re willing to sell for a loss, you could be in a position where you need to wait many years until you’re able to cover your selling costs.”
Ray White chief economist Nerida Conisbee added that Melbourne’s extensive home-building capability had kept it relatively affordable.
However, Ms Conisbee said in some areas housing had outpaced amenities such as shopping centres and schools.
TOP 10 MELBOURNE SUBURBS WITH AN OVERSUPPLY OF HOMES
SUBURB | TYPICAL VALUE | PERCENTAGE OF STOCK ON MARKET (%) | NUMBER OF DWELLINGS |
| BEVERIDGE | $705,800 | 7.34 | 2677 |
| CLYDE | $659,800 | 6.35 | 5224 |
| ROCKBANK | $628,700 | 6.13 | 2206 |
| MICKLEHAM | $690,900 | 4.81 | 6985 |
| KALKALLO | $728,500 | 4.63 | 2983 |
| CLYDE NORTH | $750,800 | 4.43 | 12771 |
| WERRIBEE SOUTH | $578,000 | 3.99 | 727 |
| OFFICER | $769,700 | 3.89 | 7201 |
| WOLLERT | $713,800 | 3.87 | 8940 |
| TARNEIT | $650,700 | 3.53 | 20323 |
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Originally published as Melbourne bargain hunt: Suburbs becoming a buyers’ paradise with affordable homes down the road from million-dollar postcodes
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