Melbourne suburbs where buyers can find property for 2016 prices

Melbourne house prices have soared, but it’s still possible to purchase for the same price as five years ago if buyers are willing to move further out of the city and plan a renovation.

The median house price in Melbourne is now almost $1.038 million, Domain data for the September quarter shows, but was only $770,221 in September 2016.

Homebuyers are trading proximity to the city for more space in the suburbs or near the beach.Credit: Hockingstuart Frankston

Falling interest rates and a raft of pandemic-era government stimulus have pushed prices higher across the city, but there are still pockets where entry-level buyers can find a home for 2016 prices.

Outer east

Belgrave and the outer eastern suburbs have seen an influx of inner-city dwellers since the shift to remote working, as families searched for more space and backyards.

The median house price was $752,500 for Belgrave over the 12 months to September, and prices have been rising steadily.

Entry-level buyers could find a home in the $700,000s range, said Bell Real Estate Olinda’s Elliot Bell, who has been fielding demand from residents of Brunswick, Fitzroy and Northcote moving out of apartments.

For that price, it would be either a neat and tidy two- to three-bedroom home with scope for upgrades, or a renovator on a larger piece of land.

Mr Bell recently sold a fixer-upper on a block of more than 1000 square metres for $760,000.

“There’s certainly some beautiful properties in the area where you might not be buying a big parcel of land, but it would have an amazing outlook,” he said.

Other neighbourhoods in the outer east to consider include Monbulk, (median house price $742,500), Boronia ($760,000), Bayswater North ($760,500) and Mooroolbark ($757,000). Or further out of Melbourne, Healesville at $770,000.

44 Station Street in Belgrave sold for $760,000 in October.Credit: Bell Real Estate Olinda

South east

Springvale had a median house price of $750,000 over the 12 months to September, close to neighbouring Springvale South ($740,000), Noble Park North ($740,000) and a touch pricier than Noble Park ($670,000).

“If a buyer did engage me with a budget of $770,000, I would say Springvale definitely is possible, if the user is willing to commit to doing work to the house,” iSell Group’s Mitchell Nguyen said. He was more optimistic about their chances in Springvale South or Noble Park, where houses would be better maintained in that price range.

Historically, the area has a strong Vietnamese community, but more buyers are coming from bayside suburbs such as Aspendale or Cheltenham for better value and bigger homes, he said.

To stay close to the beach, Seaford offers another option, albeit further from the CBD, with a median house price of $761,500.

Eview Group’s Daniel McGlashan said there are still entry-level original brick veneer houses under $770,000 in Seaford, needing some renovation.

For that price, the property would be on the inland side of the freeway that runs through the suburb, about a half-hour walk to the beach, as anything beachside costs at least $1 million for an entry-level home, he said. He recently sold an original two-bedder in Seaford for $699,000.

“We’ve had a flow-on effect from the inner beachside areas - a lot of your buyers come from the St Kilda to Mordialloc area,” he said.

“A lot of people who have been cooped up in units and apartments have wanted a backyard.”

180 Austin Road Seaford sold for $699,000 in November 2021.Credit: Eview Group

North

Just north of North Coburg, buyers might consider Fawkner or Hadfield - but only if they’re willing to stretch their budget or compromise for less land.

Ray White Coburg director Nazih Abbouchi said it would be “impossible” to find a family home under $800,000 now, but a budget between $800,000 and $900,000 would buy a neat and tidy three-bedroom brick veneer on about 600 square metres with a one-car garage.

“They were probably the two areas that saw a fair bit of growth, and stabilised a bit and took off again,” he said.

“It came down to affordability, being 15km out of the CBD, it’s where you can buy and stay under that $1 million mark.”

2/85 Queens Parade in Fawkner sold for $611,500 in November 2021.Credit: Ray White Coburg

Over the 12 months to September, Hadfield had a $770,000 median house price, with Fawkner at $742,000, but prices have soared during the pandemic.

For those with a strict budget but still set on the suburb, a two-bedroom townhouse sold recently for $611,500.

West

It’s a different picture in Melbourne’s west, where buyers can even purchase at 2011 prices.

A decade ago Melbourne’s median house price was $537,241. For that price today, family homes in Melton and surrounds are on offer.

“Depending on what you’re looking for, $540,000 is certainly sufficient for the Melton market,” Harcourts West - Melton sales consultant Avin Kumar said.

An average three-bedroom, one-bathroom home on a 500-square-metre block, ready to move in, perhaps 30 to 40 years old but maybe renovated, would sell for $450,000 to $500,000, he said.

He is seeing young families moving into the area from across the city, including the northern suburbs, Werribee and as far away as the south-eastern suburbs, as buyers realise their apartment budget stretches to a family home if they move out west.

Melton’s median house price was $437,750 over the 12 months to September, and its affordable neighbours include Melton South ($442,000), Kurunjang ($455,000) and Rockbank ($533,500).

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