Homebuyers can often feel disheartened when the suburb they desperately want to buy in is simply out of their financial reach. Rather than despair, however, they should be looking right across the high street in the neighbouring postcode.
New REIV data shows there is a significant difference in the median house price of multiple adjacent suburbs across the state, despite similar characteristics and amenities. Take Templestowe and Lower Plenty in Melbourne’s north-east for example. The current median house price in Templestowe has risen substantially over the last few years to $1.4 million.
Bordering Lower Plenty, on the other hand, has a median of just over $800,000 making it a significantly more affordable area for buyers to get a foothold into the market. Lower Plenty still hosts a great mix of new and older style properties. There are also several public transport options, schools, parks and shops throughout the neighbourhood.
Additional affordability
Another example closer to the city is West Melbourne and Footscray. The median house price in West Melbourne has risen to $1.26 million whilst Footscray has a median of $742,500. Footscray is a lively and culturally diverse neighbourhood with and abundance of culture and character. And it’s all just 5kms west of the CBD.
The same pricing variations are occurring in many other pockets including Heidelberg and Heidelberg Heights, Mt Waverly and Notting Hill, Mt Eliza and Mornington. Buying in the cheaper, adjacent suburb not only saves money, it leaves plenty of opportunity for future capital growth.
