The Melbourne property market is one of the hottest topics of the moment. After consecutive years of persistent growth, everyone is now wondering what will happen next.
Will the bubble burst? Will prices continue to rise? Where is the next up-and-coming suburb and is it affordable? This discussion can offer valuable insight, however it can also create unnecessary angst for first home buyers who are trying to break into the property market in a suburb that will suit both their desired lifestyle and budget. Although the ever popular inner eastern suburbs are high on the wish list for many, the benefits of living in the outer eastern suburbs are progressively increasing as our population grows and urban sprawl evolves.
The outer eastern suburbs offer more than just affordable housing for first home buyers.
Not only will you have a wide choice of quality homes and land for a lesser price, as a first home buyer, stamp duty is exempt for any purchase under $600,001. Any amount in excess of this, you may be eligible for a substantial concession on the first home buyer stamp duty, as well as up to $20,000 from the FHOG (first home owners grant). This will leave more of your hard earned money in your own pocket to enjoy.
New infrastructure is making the commuting experience quicker, more accessible and more enjoyable.
The Eastlink, M3 freeway, major highways and railways all offer reliable accessibility to the outer eastern suburbs, sometimes resulting in a more streamlined commuting experience than some congested areas in the inner suburbs. Also, with Melbourne’s population projected to increase to roughly 8 million people by 2051, the development of an advanced road and rail network is high on the priority list at both a local and state government level, making the outer eastern suburbs a very attractive option and one that will inevitably increase in value.
Life in the outer eastern suburbs is not what it used to be.
Maroondah City Council, Knox City Council and Yarra Ranges Council are all currently undertaking a number of projects, capital works and plans to improve amenities and create better community spaces and transport networks within their local shire. Whether it be school and shopping strip upgrades, the Boronia Renewal Project, the new Croydon Town Square or Lilydale to Warburton recreational rail trail, life in the outer eastern suburbs is now bustling with activity and opportunity.
Which suburbs and houses should be on the radar?
On average, the median price for a house and unit in the outer eastern suburbs is $666,500 and $508,500 respectively, compared to $1,153,000 and $601,000 in the inner east.* The choice of purchasing a house vs. a townhouse or unit will ultimately depend on your budget, family size and lifestyle requirements. An old house on a larger block may initially require a larger outlay, however it can also offer scope for capital improvement, potential subdivision and substantial long term capital gain.
For those who don’t want a large block or don’t wish to renovate or re-build, a townhouse may be a more suitable option.
Whatever is in your sights, start the hunt and explore your options by talking to your nearest Noel Jones property consultant who will keep you informed of any trends or new listings that become available.
| HOUSE (Dec 2017 Median*) | UNIT (Dec 2017 Median*) | |
| Lilydale | $753,500 | $567,300 |
| Boronia | $780,000 | $620,000 |
| Croydon | $822,500 | $573,000 |
| Bayswater | $837,000 | $585,000 |
| Scoresby | $877,000 | N/A |
| Knoxfield | $899,000 | $706,944 |
| Ringwood | $955,000 | $589,000 |
| Wantirna | $975,500 | N/A |
| Nunawading | $1,078,000 | $713,500 |
*www.reiv.com.au
