PRD Nationwide has identified Melbourne suburbs including Reservoir and Broadmeadows as suburbs offering homes with reasonable and affordable prices for buyers.
According to their Melbourne Property Hotspots report, in 2016/17 the Melbourne property market saw unit prices begin to level out after a period of steady growth, while houses benefited from an increasing Victorian population, unchanged cash rate, and sustained demand.
Infrastructure emerged as a key area with a focus on public transport and upgrading facilities, to support one of the fastest growing Australian populations.
“Property buyers will be buoyed by the presence of affordable options in the midst of continued overall development and price growth, found especially to the north and west of the inner CBD,” the report said.
According to the Australian Financial Review, many homes costing under $500,000 in the last Hotspots report about a year ago jumped into the next category up, boosting the supply of properties in the $500,000-to-$800,000 band.
“We’re starting to see unit prices starting to level out in Melbourne, so there is increased affordability there, whereas houses are still going strong,” PRD Nationwide National Research Manager Diaswati Mardiasmo told the AFR.
“In the last report we mentioned how the north and north western suburbs are benefiting from new facilities, which has resulted in an increase in activity in the north and western areas. That said, these remain to be the more affordable options.”
Affordability hotspots – PRD Nationwide
“Positioned to the north of Melbourne’s CBD, Broadmeadows has proven itself as a hotspot with three continuous years of strong price growth while maintaining an affordable price.
“Investors in this prime suburb will find themselves profiting from strong rental returns of 4.0% while the low vacancy rate, currently at 1.2%, has been improving since early 2016.
“Thomastown, a suburb located in Melbourne’s north, presents itself as the up and coming hotspot of 2017. It uniquely offers price affordability, diverse demographics, and family friendly surrounds; with the area catering to all types of investors.
“Vacancy rates are currently at a low 0.8%, which has continued to trend downwards, signifying the suburb’s increasing popularity.
“Deer Park has continued its hotspot reign in the first half of 2017, awarded as offering both house and unit affordability. Located to the west of Melbourne’s CBD, three years of continued strong price growth has been a determining factor driving the high demand for houses in the area. The first half of 2017 is set to see approximately $15.8 million worth of developments invested into the area, which should guarantee sustainable economic growth and a prosperous future.”