As many of our readers will know, one of the property market trends we have been commenting on since the middle of last year has been the strength of buyer demand in the lower priced outer suburbs around Melbourne. So it was interesting to see confirmation of this in the price growth data for many of the areas on Melbourne’s fringe over the past twelve months.
Assisted by improved incentives for first home buyers, the majority of outer suburbs in municipalities like Hume, Casey, Wyndham and Whittlesea have recorded very strong growth in median prices over the past twelve months, clearly out-performing the Melbourne average. In fact, many have recorded price growth above 20 per cent, whilst some have even topped 30 per cent.
A prime example of this trend is the City of Casey, one of the fastest growing area in Melbourne’s south-east, where eight different suburbs recorded more than 300 property sales in the past year. These included Narre Warren, Clyde North and Cranbourne North, (with more than 450 house sales each), and Berwick with more than 700 house sales in the year.
Every suburb in the City of Casey had double-digit growth in median house prices last year. Cranbourne, Hallam, Cranbourne East, Hampton Park and Narre Warren all recorded median growth over 20 per cent in that period.
A similar scenario took place in the City of Whittlesea, on Melbourne’s northern fringe. Four suburbs in this area recorded over 400 house sales last year, whilst another five saw between 200 and 300 sales. As a result, every suburb in Whittlesea experienced double-digit price growth whilst four (Lalor, Epping, Mernda and South Morang) recorded price growth of over 20 percent and Thomastown recorded a remarkable 33 percent.
Other outer suburban areas such as Hume and Melton in the north-west and Wyndham in the south-west also experienced similarly large sales numbers, with price growth also out-performing the Melbourne average.
Clearly, the strength of demand in Melbourne’s outer suburbs confirms the perception that for many people, proximity to the CBD is no longer a key factor in determining where to live. Easy access to employment has always been a factor for most buyers, but the reality is that most people work in the suburbs, not in the CBD.
In a market that became increasingly price sensitive as the year went by, it is clear that affordable housing, particularly in areas that were reasonably well serviced with infrastructure and has ready access to employment centres, attracted the attention of a steadily growing number of home buyers.
If you have questions about how your own local property market has been performing in the past year or so, or you are wondering how to maximise the price you achieve when you sell in the current market, don’t hesitate to give the team at Ian Reid Vendor Advocates a call on 9430 0000. You can also get a FREE copy of our booklet, Fatal Real Estate Traps Exposed, while you’re here on our website.