- Melbourne is home to the second most expensive housing market in Australia after Sydney
- Even the 25th percentile has house sale prices at $665,000
- Dallas and Broadmeadows are home to some of the cheapest housing in Melbourne
While Sydney is the least affordable city in the country, Melbourne comes in second place. Melbourne’s inner east is home to some of the most expensive housing in the country.
Greater Melbourne
[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]
Even at the 25th sales percentile sits at $665,000, according to CoreLogic, making stamp duty about $16,912.
For homes purchased by first home buyers and valued at $600,000 or less, the full first home buyer duty exemption applies. For houses valued between $600,001 and $750,000, buyers may be eligible to receive the first home buyer duty concession.
Data from Canstar, CoreLogic and Ryder Research Resources has been collated to list the top 10 cheapest suburbs in Melbourne for first home buyers, adjusted based on several metrics.
These include good services and amenities in the area such as a strong network of schools, shopping, public transport, road infrastructure along with parks and green spaces. Suburbs with or near strong employment nodes are also taken into consideration.
What are the cheapest suburbs in Melbourne?
- Dallas – $505,000
- Broadmeadows – $580,000
- Brunswick East (Units) – $585,000
- Cranbourne – $590,000
- Epping – $630,000
- Preston (U) – $630,000
- St Albans – $660,000
- Narre Warren – $670,000
- Cheltenham (U) – $675,000
- Caroline Springs – $680,000
Dallas
Dallas is a northern suburb of Melbourne, located 17 kilometres north of the CBD. A part of the City of Hume, this suburb is located in one of Melbourne’s key growth areas and has good transport links, multiple schools and colleges, and access to a major green space corridor. Additionally, it is just several train stops from several employment zones, and not far from Tullamarine airport.
Broadmeadows
Broadmeadows, also located in Melbourne’s north, features on the list thanks to its affordability, land availability and transport links, making it especially popular with first home buyers. The Housing Industry (HIA) noted that Broadmeadows and the City of Hume LGA is the fastest-growing area in Australia.
Merrifield Business Park, Merrifield City, the Beveridge Intermodal Terminal and the Sunbury train line upgrade are among the various projects creating thousands of jobs in the area. Houses in this area are mostly in the $500,000’s.
On Graham Street in Broadmeadows, there is a two-bedroom, one-bathroom house for sale at $430,000.
The house has a modern layout, and a low maintenance garden. The sale price of $430,000 is notably lower than some comparable sales this year referred to in the property’s Statement of Information.
Brunswick East
The only inner-city suburb on this list, Brunswick East has many units in the $500,000 – $600,000 range, comparable to houses in the City of Hume region. It is close to the CBD, has good transport links and a major education-employment hub. Two metro lines service this area and is relatively close to the airports. The Parkville employment and education is near the suburb, with more than 100,000 students attending the University of Melbourne and RMIT.
Cranbourne
Located 43 kilometres southeast of the CBD, Cranbourne is located within the City of Casey, which is currently a strong performing growth market. Cranbourne is a commercial hub with a range of leisure, sports and educational facilities. These include a TAFE campus, Royal Botanic Gardens and a golf course. There are also rail links to Melbourne.
Epping
Located 20 kilometres north of the Melbourne CBD, Epping ticks a lot of boxes given its relative affordability coupled with retail, medical and educational options.
It is near the Melbourne Wholesale Markets and major employment zones along the Hume Freeway and Metropolitan Ring Road. Epping falls within the Whittlesea LGA which is one of Melbourne’s busiest areas for the new population, making it popular with first-home buyers.
On Houston Street in Epping is a three-bedroom, one-bathroom house scheduled for an auction with a price guide between $475,000 to $525,000.
The house is within walking distance of High Street, and has modern indoor space with a large living area and sizeable garden.
Preston
Located nine kilometres northeast of the Melbourne CBD, Preston and other suburbs in the Darebin LGA have median house prices well above $1 million. However, units are a popular and affordable alternative. The education and training economy is crucial to the area with the La Trobe University education-medical precinct being a major employment node. Light industrial parks in there are also major employment hubs. Several precincts are classed as Major Activity Centres and the focus of future development.
St Albans
St Albans, located 17 kilometres northwest of the Melbourne CBD, is within the City of Brimbank, an affordable middle-ring precinct in Melbourne’s west with extensive infrastructure and a supply of affordable housing.
St Albans is home to a Victoria University campus, Sunshine Hospital, multiple schools, lots of green space and shopping centres. It has rail links to Melbourne and leans on the Western Ring Road. Nearby suburbs, such as Deer Park, have major commercial-industrial complexes, too.
Narre Warren
Narre Warren, located 38 kilometres southeast of Melbourne’s CBD, is a key centre of employment and infrastructure in the City of Casey, surrounded by affordable housing.
There are a range of major sports, retail and recreation facilities in the suburb, and the intersection of the Princes Highway and Princes Freeway. A short drive away is the vase education-medical campus which includes Casey Hospital, Federation University and TAFE.
On Bosco Close, there is currently a three-bedroom, one-bathroom house for sale, with a price guide of $605,000 to $665,500. The property sits on a large 664 sqm block, and is a couple of minutes away from the Monash Freeway.
Cheltenham
Cheltenham, located 18 kilometres southeast of Melbourne’s CBD, does have expensive houses, however, the unit market remains relatively affordable. The area is known for being exceptional in terms of recreational facilities with six golf courses in and around the suburb. Westfield Southland and Kingston Centre are also major shopping centres along with a major health facilities that is known for servicing the elderly population. There are also rail links to the Melbourne CBD.
Caroline Springs
Located 21 kilometres west of the Melbourne CBD, there are still houses in Caroline Springs and the City of Melton that can be purchased for in the $400,000’s. Caroline Springs, while more expensive than some of its surrounding suburbs, is a master-planned suburb that is arguably a more appealing option due to modern housing around a commercial centre, coupled with extensive sport facilities and parklands. There is a school precinct, a commuter train station and access to the Western Freeway.
