Broadmeadows, Frankston North, Epping, St Albans, Lalor and West Footscray are among the areas real estate experts expect to excel this year, as buyers scramble for affordable homes.
Real Estate Institute of Victoria president Richard Simpson said the best options remained in the city’s north and west after a widespread price boom in recent years.
21 Glamis Rd, Footscray, is on the market for $1 million. Source: Supplied
“Given increasing buyer demand for areas that offer value, suburbs yet to reach the citywide median house price are best placed to experience strong price growth in 2018,” he said.
CoreLogic attributed a median value of $832,735 to Melbourne houses in December.
Mr Simpson tipped north and western suburbs Albion, Ardeer, Broadmeadows, Epping, Mill Park, Albanvale, Doreen and Taylors Lakes to lead the charge this year.
“With the median house price in Melbourne’s middle ring tipped to break $1 million next year, Taylors Lakes provides a more affordable alternative without really needing to compromise on proximity to the CBD,” he said.
The suburb, 23km north west of the city, had a median house price of $690,000 after a 14 per cent boost in the 12 months to September, according to CoreLogic.
Frankston North and Bayswater North, surrounded by suburbs with higher median house prices, were also flagged as ones to watch by Mr Simpson.
LJ Hooker, Frankston, agent Nancy Nugent said Frankston’s North affordability, transport links to the city, proximity to the beach and schools were among its drawcards.
The suburb was one of 2017’s strongest performers for growth, with the median house price rising 34.4 per cent to $437,500 in the 12 months to September, CoreLogic data shows.
Realestate.com.au chief economist Nerida Conisbee said user activity on the site showed “a big push to the west” and notably to Kensington (median house price $1 million).
“It’s very close to the city, it’s got a lot of period homes. It’s far more affordable than if you went to the north, east or southeast,” she said.
WBP Group executive chairman Greville Pabst flagged nearby Maidstone and West Footscray as other hot spots as buyers searched for affordable homes close to the city.
He said Cheltenham would also be boosted by the new train station at Southland.
Lisa and Jarrod Richardson are selling the three-bedroom house they renovated at 21 Glamis Rd, West Footscray, with price hopes of $1 million.
“Our neighbourhood is amazing,” Ms Richardson said.
“It’s very community-based, despite how close we are to the city, everyone is willing to help each other and that’s what we love about it.”
Hocking Stuart, Yarraville, agent Adam Welling said demand in the suburb, just 7km from the CBD, was driven by families.
“It seems ridiculous to say but $1 million is an affordable family home now,” he said.
Advantage Property Consulting director Frank Valentic said Mornington Peninsula suburbs including Rosebud, Dromana, McCrae and Capel Sound also still offered great value for money, alongside suburbs in the middle west and north.
Ray White, Epping, agent Vanny Bains said the suburb had attracted high demand from investors and homebuyers over the past two years.
“Numbers have increased dramatically from interstate investors and there’s very high demand from first-home buyers in the area,” he said.
Mr Bains said the four-bedroom house at 358 Findon Rd, Epping, would draw first-home buyers and investors. It has a price guide of $570,000-$620,000.