Want a house in a “liveable and affordable” Melbourne suburb with a bright economic future?
You’ll need about $1 million, despite Melbourne’s housing market tumbling since late 2017.
This is the finding of a new report from PRDnationwide Research, which highlights million-dollar suburbs Yarraville and South Kingsville in the city’s inner west as the city’s most “affordable and liveable” hot spots.
Montmorency, Briar Hill and Yallambie to the north east round out the top five with median house prices between $908,500 and $797,500.
PRDnationwide Research national research manager Dr Diaswati Mardiasmo said while many might wonder “why a $1 million suburb would be considered affordable”, the list really showed the most affordable suburbs where homes ticked all the boxes a buyer could ask for without compromising on anything.
“These are creme de la creme suburbs, but you don’t have to spend $2 million to get into them,” Dr Mardiasmo said.
“But you do have to give up affordability up to this level.”
The report disregards suburbs more than 20km from the CBD, those without at least two forms of public transport, high crime rates and above average unemployment, as well as areas without a significant infrastructure and development pipeline to ensure continued growth.
More affordable prices reflected decreased liveability and economic upside.
Dr Mardiasmo said with past suburbs to make the list universally rising in price in the following months, she believed these hot spots “will be front and centre for gains when the market turns”.
Greg Hocking Elly Partners Yarraville director Greg Hocking said the suburb had long benefited from people being squeezed out of a much higher priced Williamstown.
“It’s got the coffee shops and things that its young, upwardly mobile residents are looking for as part of their lifestyle,” Mr Hocking said.
“And the more money that goes into the area just improves it further.”
Neighbouring South Kingsville had similar appeal, he said.
Barry Plant Eltham’s Jason Stepanow said Montmorency, Briar Hill and Yallambie all offered the same core amenities: good schools, a train line connecting them to the CBD within 40 minutes and nearby Greensborough plaza as a shopping mecca.
“And most of the blocks are in excess of 600sq m,” Mr Stepanow said.
With all three suburbs on the cusp of the 20km from the CBD cut off used by the report, neighbouring suburbs including Eltham would likely suit buyers willing to go an extra 2km, he said.
Units in Richmond were ranked the city’s best, with Oakleigh, Greensborough, Huntingdale and Travancore rounding out the top five.