With price drops happening across the city, some experts are saying it’s the best time to buy since 2012. What’s more, they’ve singled out Blackburn as a particularly good suburb to buy a unit, with median unit prices falling 15.4% but growth potential still strong for the future. Let’s take a look at the opportunity currently up for grabs in Blackburn.
What’s happening in Melbourne’s property market?
Property prices have been steadily increasing in Melbourne for the past six years, with median prices almost doubling in some parts of the city. But after such astronomical growth, the market has finally hit a slowdown, partly due to changes to credit conditions.
But while some buyers think a slowing market is a no-go zone, it can actually be the opposite. Buyers who purchase a great property now can expect to get a better price than they would at the market’s peak, plus they’ll enjoy really positive growth again in the medium- to long-term if they buy a quality property in an area like Blackburn. The market won’t be flat forever, so buyers who plan to hold on to their property for at least five years will likely reap the benefits down the track.
It’s important to highlight that a drop in median prices doesn’t necessarily equal bargain territory – vendors are still seeing good prices being achieved and overall growth over time has been strong. Instead, the market offers a little more balance and tips the opportunity back towards buyers for the first time in a while. So investors and owner occupiers should take note.
So why is Blackburn the best place to buy in Melbourne’s East?
With this price correction happening all over the city, and even all over Australia, why is Blackburn a particularly good spot to take advantage of? To start, the 15.4% median price decrease for units is among the highest in the city, according to data from CoreLogic. Only Essendon North has experienced a greater decrease, recording a 16.8% drop in median price.
But Blackburn’s appeal at the moment is about more than just a price win. There are great schools, good public transport services for easy commuting, beautiful parks and everything you could ask for in the way of shops and amenities. Convenience and lifestyle play huge roles in growth potential, so buyers snapping up units will experience Blackburn’s benefits now, as well as into the future when it’s time to sell.
The units themselves also offer more comfort than in other suburbs, with many on sub-divided lots instead of in big apartment complexes. Floor plans are often more spacious, prices are much more reasonable and there are regularly extra features like second bathrooms, garages and even backyards.
The details on buying in Blackburn
According to REA Group data, units in Blackburn are currently selling for a median price of $518k, though those with smaller budgets will find great opportunities for one-beds at around $375k. There are still good opportunities for investors looking for long-term opportunities; overall rental yield for units is currently at 3.9% with average demand, while those one-bedrooms are even better at 4.9% for yield and high demand. This is an opportunity not to be missed.