Budget homes near million-dollar suburbs
Melbourne homebuyers aiming to enter a million-dollar postcode should explore nearby suburbs for affordable options this spring.
Adjacent areas are experiencing a surge in budget-friendly homes, making them attractive for buyers seeking value.
From Dandenong to Laverton, these overstocked markets offer a plethora of homes, catering to those looking for bargains.
Dandenong, in particular, stands out with a median dwelling price of $631,900.
This is nearly $450,000 less than nearby Rowville, where typical values reach $1.081 million, and Keysborough, nearing $1 million.
With 2.26% of Dandenong’s 4830 homes for sale, SuburbData research indicates an oversupply, pressuring sellers to adjust prices to meet buyers’ expectations.
According to Harcourts Asap’s Daniel Farrugia, this oversupply has created a paradise for first-homebuyers.
He explains, “As investors sell off rentals, a new wave of buyers is flooding into Dandenong.”
Furthermore, businesses are moving into the Dandenong CBD, attracting workers commuting from Gippsland and the Bass Coast.
Overall, the area’s appeal continues to grow.
“There are ample growth opportunities if you want to enter the market, not to mention the excellent food available.”
Meanwhile, Laverton’s median dwelling value of $566,300 is notably lower than neighboring Altona Meadows, where typical house values are $723,800.
Additionally, Seabrook has even higher values, with a typical house priced at $757,400.
Currently, with 3.37% of Laverton’s 1762 homes for sale, buyers have a promising opportunity to find great deals.
In Sunbury, 2.05% of the suburb’s 13,748 residences are currently on the market, potentially giving buyers a significant advantage.
Additionally, Beveridge offers even more potential for bargains, with 7.34% of all homes available for sale.
This makes it one of the most oversupplied housing markets in Australia.
Furthermore, in Victoria, Clyde and Rockbank follow closely with 6.35% and 6.13% of homes on the market, respectively.
Former buyers’ agent turned CHWYLA Doreen consultant, Jim Marsh, advised prospective buyers to consider a long-term perspective when purchasing in areas like Beveridge.
He noted that many planned major state government infrastructure improvements are still some time away.
“If you’re a first-homebuyer planning to stay only a few years, this may not be the right choice for you,” he said.
Eda Property founder, Anissa Cavallo, described the current oversupply in some Victorian property segments as a unique opportunity for buyers.
She explained, “Although listings in Victoria are fairly stable, this oversupply offers a chance to secure a bargain in the short term.”
Cavallo acknowledged that infrastructure challenges exist in Beveridge, Clyde, and Rockbank. However, she encouraged buyers to focus on long-term growth prospects.
“Yes, Beveridge does face some infrastructure issues,” she said. “However, real estate agents focus on current problems, not the long-term drivers.”
Ms. Cavallo recommended reviewing Plan Melbourne documents when considering these areas. Details on infrastructure plans might offer clarity and potential value.
Furthermore, changes in government plans could quickly increase property values.
SuburbData analyst Jeremy Sheppard recognized the risks for new buyers in oversupplied housing markets.
Nevertheless, he emphasized that this issue is not widespread across all markets.
“Oversupply means there are too many homes and not enough buyers,” Mr. Sheppard explained. “Unless you sell at a loss, you may wait years to cover your costs.”
Ray White chief economist, Nerida Conisbee, noted that Melbourne’s extensive home-building capacity has kept the market relatively affordable.
However, she pointed out that in some areas, housing development has outpaced the growth of amenities such as shopping centres and schools.
TOP 10 MELBOURNE SUBURBS WITH AN OVERSUPPLY OF HOMES
SUBURB |
TYPICAL VALUE |
PERCENTAGE OF STOCK ON MARKET (%) |
NUMBER OF DWELLINGS |
| BEVERIDGE | $705,800 | 7.34 | 2677 |
| CLYDE | $659,800 | 6.35 | 5224 |
| ROCKBANK | $628,700 | 6.13 | 2206 |
| MICKLEHAM | $690,900 | 4.81 | 6985 |
| KALKALLO | $728,500 | 4.63 | 2983 |
| CLYDE NORTH | $750,800 | 4.43 | 12771 |
| WERRIBEE SOUTH | $578,000 | 3.99 | 727 |
| OFFICER | $769,700 | 3.89 | 7201 |
| WOLLERT | $713,800 | 3.87 | 8940 |
| TARNEIT | $650,700 | 3.53 | 20323 |
