Melbourne’s next property hot spots in north, west: Hotspotting
Buyers searching for Melbourne’s next property hot spots should go north or west — and not count out former battler and blue-collar areas.
This is the verdict of Hotspotting’s latest report, which recommends savvy househunters target Darebin, Moreland, Brimbank, Wyndham City and Banyule in the coming months.
Hotspotting founder Terry Ryder tipped medium- to long-term growth for these regions, which were showing “more resistance to the downturn than others” and had “good bones (that) tick a lot of boxes” for investors.
These included closeness to the CBD, established or improving infrastructure, lifestyle perks, and affordable houses or units.
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Mr Ryder said urban renewal and infrastructure projects that would notably turn Sunshine into a major rail hub, including as part of the Melbourne Airport Rail Link, had lifted Brimbank’s property markets.
Wyndham City remained affordable despite house prices growing in most of its suburbs over the past year, while Banyule’s “green space, lifestyle and busy local economy” kept its market resilient.
And Darebin and Moreland were well connected to the CBD and education precincts, offered “trendy” lifestyles, and had many solid unit markets that were outperforming house markets.
In Darebin, Thornbury’s median unit price has jumped 3 per cent annually to $550,000, while its house median dived 8 per cent to $1.135 million. It was a similar story in Moreland’s Pascoe Vale, where the unit median is up 8 per cent ($620,000) and the house median, down 7 per cent ($810,000).
Mr Ryder said the once blue-collar Darebin was one of just two Melbourne local government areas with no suburbs classified as “decline markets”, the other being Nillumbik Shire on the city’s northern fringe.
Jellis Craig Northcote’s Nigel Harry said Darebin still offered “a lot of untapped (price) growth here” and “further gentrification”, notably in suburbs like Preston and Reservoir.
“People waiting for the bottom of the market should … buy now, because they may have already missed it,” he said.
“In Northcote, we just had a suburb record set in Henry St at $4.465 million, which is evidence people are prepared to invest good money in the area.”
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Mr Ryder agreed the worst appeared to be over for the Melbourne market, thanks to a “series of fortunate events” including the federal election outcome, the Australian Prudential Regulation Authority’s plan to loosen lending requirements, back-to-back interest rate cuts and the Coalition’s new income tax cuts.
“People will be getting more in their pay packets, paying less on their mortgages, finding it easier to get loans, and be able to get bigger loans,” he said.
“That’s going to help lift Melbourne out of the bottom of the market and potentially into moderate growth.”
Best annual performers: Kingsbury, Northcote (house median down 1% to $735,000, $1.325m), Bundoora, Northcote, Thornbury (unit median up 3% to $400,000, $520,000, $550,000)
Highest medians: Northcote (house $1.325m), Macleod (unit $615,000)
Lowest medians: Bundoora (house $720,000 and unit $400,000)
Most annual sales: Reservoir (444 houses), Reservoir, Preston (186 units)
Best annual performers: Fawkner (house median down 1% to $705,000), Hadfield (unit median up 12% to $540,000)
Highest medians: Brunswick West (house $1.1m), Coburg North (unit $660,000)
Lowest medians: Glenroy (house $695,000), Brunswick West (unit $450,000)
Most annual sales: Coburg (268 houses), Brunswick (237 units)
Best annual performer: Braybrook (house median up 2% to $720,000)
Highest median: Sunshine (house $735,000)
Lowest median: Deer Park (house $570,000)
Most annual sales: Deer Park (214 houses)
Best annual performers: Tarneit, Wyndham Vale (house median up 7% to $560,000, $475,000), Point Cook, Werribee (unit median up 6% to $465,000, $375,000)
Highest medians: Point Cook (house $640,000 and unit $465,000)
Lowest medians: Wyndham Vale (house $475,000 and unit $375,000)
Most annual sales: Point Cook (873 houses), Werribee (102 units)
Best annual performers: Briar Hill (house median up 3% to $850,000), Heidelberg (unit median down 1% to $590,000)
Highest medians: Ivanhoe East (house $1.88m), Rosanna (unit $715,000)
Lowest medians: Heidelberg West (house $690,000), Greensborough (unit $550,000)
Most annual sales: Greensborough (238 houses), Ivanhoe (60 units)
Source: Hotspotting analysis of CoreLogic data
*no data for units