Skyline of Melbourne
Affordable property in popular postcodes may come at a compromise. Image: Canva
  • Locations in the heart of Melbourne are regaining momentum
  • Property prices in Melbourne’s south east are starting to cool down, with areas seeing -11.6% growth
  • Melbourne’s Western suburbs are seeing increased development of affordable property

The post-Covid recovery of Docklands is well underway, as the suburb records renewed investor interest. Public transport is also back on the cards, with well-connected suburbs coming in as top picks for premium locations on a budget.

Herron Todd White’s (HTW) May Month in Review explored multiple Victorian locales where a little compromise could go a long way.

Investors marvel at Docklands

Located on the western fringe of the Melbourne CBD, it has all the conveniences of city living alongside a waterfront lifestyle. Sporting fans can revel in exceptional access to Marvel Stadium, and investors can rejoice in reasonably priced apartments.

According to HTW, the median unit price for Docklands is $640,000, up 7.6% from last year, with rents for a two bedroom unit floating around the $630 mark.

Rental yields for 3008, including Docklands

Other suburbs close to the Melbourne CBD that are piquing buyer interest includes Northcote, billed as a dynamic, multicultural suburb situated in the city’s inner north.

Well-connected to public transport links, the suburb boasts superb amenity all around, including numerous parks and green spaces.

Director Perron King notes the median house price for Northcote is $1.65 million, down 6.4% from last year. He also points out some humble abodes could be had at a price lower than the median, including 59 Jenkins Street, which was listed at between $1.35 million to $1.485 million.

Southeast

Portsea is the apple of many eyes, but a compromise option could be a Brighton unit. Offering both a more affordable option and proximity to the Melbourne CBD, the median house price for the locale is $3.25 million, where as units recorded a median of $1.136 million.

Both medians have been trending downward since last year, the house price median is down 4.6%, with unit medians down 8.4%.

Renting in the suburb will typically see prices for a three bedroom unit around $825 per week, with a 3.5% yield.

Rental yields for 3186, including Brighton

Further inland at Clayton, more good deals could be had, with the King noting:

“Investors looking at Clayton can benefit from international students as it is home to the Monash University Clayton Campus.”

“The median price for a house in Caulfield is $1.2 million which is at the same median as last year. The median rent for a two-bedroom unit sits at $450 per week which is up 7.1% from last year,” added King.

Rental yields for 3168, including Clayton

Affordable East?

The hefty $2.7 million median price of Camberwell is not likely to convey affordability to most, but units could see purchase made at a mere eighth of the price.

HTW’s report recalled 502/1101 Toorak Road which was listed for between $340,000 to $370,000. Other compromises of such a purchase include size and limited amenity, noted the report.

Interior of 219 347 Camberwell Road Camberwell VIC
219 347 Camberwell Road Image: Realestate.com

With a more generous budget, better units can be had, with the report calling on the example of 219/347 Camberwell Road, advertised for $400,000 to $440,000, offering much more than the Toorak Road property.

A tree change could also see your budget stretched further, HTW noted Coldstream, located on the fringe of the Yarra Valley wine region had a median house price of $780,000.

Heritage homes in Fitzroy

With the median price of houses over $1.5 million, and unit medians sitting at $750,000, the HTW report suggests a potential compromise could be a smaller house. Fitzroy not only sits within striking distance of the CBD, a mere 10 minute drive, but may offer some heritage delight.

King noted a middle ground between price and comfort might be found in the example of 22 Garfield Street, a small, single storey, heritage home that features one bedroom an one bathroom.

Nearby Abbotsford may be more bang for buck, alongside locales such as Beveridge and Mickleham.

Western Suburbs

The western suburbs region of Melbourne covers six areas, allowing buyers to have a great range of choices and affordable options. Within this region, Essendon is very popular due to proximity to the CBD and offers a variety of amenities.

The median price for a four bedroom house in Essendon is just over $2.1 million, with a weekly $850 rental return. Essendon however has a much more affordable apartment market, with the median price being $560,000 and rentals for $410 a week.

“The western suburbs of Melbourne absolutely demonstrate that you can live in a desirable inner city location but that it comes at a price. With a little bit of suburb flexibility, you can also still have your cake and eat it too!”

Perron King, HTW Director

For those seeking more affordable property, heading further out to the ever-growing suburb of Tarneit, which is currently seeing multiple estate developments, is an affordable option. The Tarneit four bedroom median house price is $675,000 and offers $440 per week rental returns.



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