Melbourne House Prices Decline by $30,000 per 1km from CBD – REIV

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Understanding Melbourne’s Real Estate Market: Suburb Comparisons and Affordability Insights

The Real Estate Institute of Victoria has found that Melbourne house prices increase by approximately $30,000 for every kilometer closer to the city you get. This data has implications for families who have been priced out of certain suburbs due to interest rate hikes in the past two years. The research also shows that the city’s northwestern and western suburbs are more affordable than its southeast and east counterparts.

Some suburbs, such as Park Orchards and Wonga Park in the east, have defied the $30,000 trend, likely due to the lifestyle they offer. With interest rate rises affecting borrowing capacity, buyers can consider moving just a few kilometers further out to find more affordable options.

For example, Footscray has the lowest median house price within 5km of Melbourne, making it an attractive option for buyers. The suburb has seen a significant increase in interest over the past decade, with many buyers, especially first-home buyers, taking advantage of the affordability it offers.

As buyers look further out from the city, areas like Braybrook, Ardeer, and Rockbank provide more affordable housing options. In contrast, suburbs closer to the city like Middle Park and Toorak have much higher median house prices.

Overall, the data suggests that buyers can save significantly by considering suburbs further from the city center. With the housing market constantly evolving, it’s important for buyers to explore all their options to find the best fit for their budget and lifestyle.

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