- The property market has seen sustained price growth, but pockets of affordability exist
- There are some promising property opportunities, particularly for long term buyers
- RiskWise Property Research has analysed Victoria's housing market
With sustained growth in Victorian property prices, where is it most affordable to buy in the Garden State?
Despite being hit hard by Covid related restrictions, Victoria’s property market has proven resilient. The state has experienced strong growth over the past year, although current lockdown restrictions have had some impact.
Pete Wargent, the co-founder of BuyersBuyers, has found some pockets which provide relatively affordable housing. Some reasonably central suburbs have prices at around 70% of the median price, for example.
“Prices have increased over the past year but there are still areas where bargains can be had.”
Pete Wargent, BuyersBuyers Co-founder
Mr Wargent adds that those with a long-term strategy can expect solid capital growth in the coming years.
As the cash rate and therefore mortgage rates remain ultra-low, there are property opportunities in all capital cities for those with a savings buffer and secure employment, according to Mr Wargent.
“With first homebuyers still active and now competing with investors for a low level of stock on the market, we expect the more affordable suburbs in Australian property to be sharply in focus,” Mr Wargent said.
RiskWise Property Research has conducted a thorough analysis of Victoria’s housing market, identifying the most affordable areas.
“There are opportunities for buyers looking for houses with high land value as a proportion of the property, and a strong component of scarcity, especially if they intended to hold on to the property for several years or longer.
“In addition, the current ultra-low interest rates have created a unique environment where buying a house in many areas was cheaper than paying rent,” Mr Wargent said.
The 10 Most Affordable Suburbs
The list below is based on a range of suburbs at around 70% of the median capital city house price for the state, while still being within relative proximity to the city centre.
The analysis also considered suburbs with at least 1,000 houses in the existing stock.
“Of course, there are cheaper suburbs in more distant or less favoured locations but buying in the lowest quartile of the housing market can sometimes come with its own challenges and risks,” Mr Wargent explained.
To check out Australia’s most affordable articles, read this.