Things just went from bad to worse for Melbourne’s first home buyers after new data showed that the “housing affordability line” has moved even further away from the CBD.
The housing affordability line refers to the border between suburbs with median house prices above and below $600,000. Victorian first home buyers who purchase a property up to $600,000 are eligible for a stamp duty concession, making this a pretty important figure.
These are the closest affordable suburbs in each direction of the city according to the Real Estate Institute of Victoria:
West: Sunshine West, 13-16km from CBD
Northwest: Gladstone Park, 15km from CBD
North: Thomastown 17km from CBD
East: Mount Evelyn, 37km from CBD
Southeast: Dandenong, 30km from CBD
Around a quarter of metropolitan Melbourne’s 330 suburbs still have a median house price under $600,000.
Real estate experts recommend that first home buyers should look further afield for affordable houses, but also noted that there are still some sub-$600,000 properties even in the more expensive suburbs.
“Just getting into the market is the first step. It doesn’t have to be the house you have to live in forever,” REA Group chief economist Nerida Conisbee told realestate.com.au.
“Although housing is expensive, apartments are becoming cheaper because there’s so much development. That’s good news if you’re a first-home buyer.”