Perspectives

How Much Does It Cost To Buy A House In Melbourne’s Suburbs?

A modern residential areaHome buyers in Melbourne have turned their attention to the suburbs for more affordable prices, but some areas have recorded higher values than other markets as of May, based on CoreLogic data.

The price of a house and land around Manor Lakes, Victoria, could be a better option for those who want to buy a cheaper residential property. You’re better off not looking in Derrimut, where average home prices rose almost 258 per cent in May to $656,195 from just $183,352 in the same month in 2008.

Fast-Growing Suburbs

Some factors that caused Derrimut’s home prices to be top Melbourne suburb include a stronger demand from a bigger population. Falling interest rates also helped in driving higher prices in the area. Ashburton ranked next with median prices increasing nearly 154 per cent to more than $1.9 million from $750,420 over the last 10 years.

On the other hand, those who want to buy an apartment should look far from Altona North. The median apartment prices in the suburb surged 164 per cent to $655,491 from $248, 314 during the same period.

Market Shift

The high prices of stand-alone homes have led many buyers in Melbourne to seek an apartment for sale instead. A report showed that demand for houses in the city fell 12.8 per cent on an annual basis.

Demand for apartments rose 4.5 per cent annually. By comparison, the median home price in the capital city reached $720,000, as opposed to the average unit price of $536,000.

Conclusion

Most suburbs in Melbourne are currently a seller’s market, which means that buyers would be forced to pay a premium if they want to outbid their competition. If you’re looking for a better house and land package, there are other suburbs such as Tarneit where prices are likely more affordable than other places.