Suburb Profile Report for Albanvale VIC (3021)

Albanvale House: Median price $390,250, Annual capital growth 6.62%, Number of sales 78, Weekly median advertised rent $320

  • House
  • Unit
Source: CoreLogic RP Data
  • Median price
  • Number of sales

Source: CoreLogic

  • House Report
  • Expert Report

VIC has seen average median house prices change by 7.80% which means that Albanvale, 3021 has done well for property investors by showing a capital gain of 15.80% over the last year

Taking the average capital gain, or increase in median house value, Albanvale,3021 has racked up an average of 15.80% over the period. This ranks it number 1415th in the whole country for real estate investors looking at median house price increases.

When looking to buy, or assessing what properties are really achieving at sale, it's essential for property investors to take into account what discounts are being offered in Albanvale, 3021. Typically our figures indicate that -4.74% is being offered, which puts this VIC suburb at 2772th most discounted overall in Australia.

Often selling an investment property can take time, and in Albanvale the average time real estate has been on the market is 53.37 days.

Situated 18.68km from the CBD, Albanvale is one of Brimbank localities in the postcode 3021.

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RP Data’s July figures show Albanvale, located around 20km north-west of the Melbourne CBD, recorded a median house price of $320,000, which is considerably more affordable than neighbouring suburbs of Cairnlea, Derrimut, Burnside and Burnside Heights. Full summary

Property experts have been tipping Melbourne for a correction since it became clear that the rocketing growth rates that characterised the market between 2007 and early 2010 were slowing. 

Analysts have highlighted a number of reasons why Melbourne’s best days are behind it, from affordability – at its worst level since the early 1960s, according to Residex CEO John Edwards – to slowing population growth due to lower overseas student numbers, as well as looming oversupply issues due to over-eager apartment developments.

However, the Victorian capital’s market appears to be holding up better than expected: while walues are undoubtedly sliding – RP Data figures for May recorded a fall in median values of 1.9% over the previous three months – they’re not falling as fast as many expected.

“Go figure Melbourne!” says APM senior economist Andrew Wilson. “My gut feeling is that it’s going to do a lot better than predicted.”

Wilson highlights a surge in the number of first homebuyers entering the market as a particularly good sign.

“We saw the highest number of first homebuyers in the market all year in May,” he comments. “Admittedly, I’m not saying everything’s hunky-dory: Melbourne’s still recovering from the massive, unsustainable price growth – but the correction’s not at the level that we thought it would be. We may even see a bit of growth by the end of the year.

Wilson points out that some of the issues that pundits suggested could harm the Melbourne market might actually help to set it up for another surge.

“There are still large numbers of apartments and houses being built – this will keep a cap on prices for now. That will see affordability improve, especially as months go past without an interest rate rise.”

Victoria’s strong economy will promote wage growth, too – another factor assisting affordability. CommSec’s latest State of the States report rates the Victorian economy as the third strongest in Australia (following WA and the ACT). CommSec chief economist Craig James highlights historically-low unemployment levels supporting housing lending, retail spending and home building as the drivers of the state. Wilson admits that construction is a major driver of the economy, but reiterates that its strength is a bonus. It could also drive sales in the upper end of the market.

“My gut feel is also that there’s been a bit of a revival in the upper end,” says Wilson. “I think that Melbourne represents very good value at the upper end – certainly compared to Sydney: $1.5m will buy you a lot more in Melbourne than it will in Sydney, and we might see activity push through on the back of a very strong Victorian economy.

“I’m not talking about a boom or anything, but the conditions are right for stabilisation,” says Wilson. “We expected Melbourne to catch its breath this year and recover to a certain degree, but things are looking brighter than we thought – which is a bit of a surprise.”

WBP Property Group CEO Greville Pabst also thinks the Melbourne outlook is improving – although he pins his hopes to a spike in post-auction sales.

Pabst argues that an increasing number of passed-in properties are selling following “tough post-auction negotiation”, especially around the city’s inner suburbs.

“Auction results during the last fortnight are a positive sign for the Melbourne market,” says Pabst. “Post-auction sales are resulting in good outcomes for buyers and fair results for vendors.”

Pabst warns that the positive change hasn’t affected all areas, though.

“Some areas are faring better than others, such as the inner east where clearance rates for units have reached 90%. Despite this strong result, buyers remain very selective; not only about the suburbs they wish to reside in but also about the streets and property types.”

Pabst highlighted the case of St Kilda. He commented that the suburb has seen “mixed results” as buyers vie for only a select few of the many properties on offer in the area.

“Buyers and tenants in St Kilda are placing increased value on security when deciding to buy or rent, with implications for demand and prices for some local properties,” added Pabst. He also stressed that while the market may have bottomed out, he did not expect prices to move upward in the near future.

Angie Zigomanis, senior project manager for BIS Shrapnel, is a little more concerned about the housing supply issue.

“Melbourne still has an underlying shortfall of accommodation, but that’s quickly getting eroded by the high levels of construction,” he says. “Even though there’s been a high level of starts, it hasn’t translated as supply yet because a lot of development has been focused on large scale projects. They take a couple of years to turn around and physically add to supply.”

Zigomanis cautions that in a couple of years, when most of those projects have been completed, the impact will really be felt.

“Vacancy rates in particular are likely to rise – if not across the board, then certainly in certain pockets,” he comments.

Zigomanis is also bearish about the prospects for growth in the coming years.

“There’s no real upwards price pressure, apart from healthy economic conditions – and affordability is strained. I don’t really see an upside in terms of growth; if you’re looking in terms of real price growth, it’ll probably be below inflation.”

On the up 

Valuers Herron Todd White highlight the affordable end of the market as one that investors should look at closely.

Its Melbourne office notes that suburbs that have seen steady growth over the 12 months to March 2011 are predominantly the more affordable properties in locations such as Langwarrin (16% increase), Footscray (15% increase), Werribee (14% increase) and Caroline Springs (15% increase).

It also recommends inner Melbourne suburbs such as Maribyrnong, Footscray West and Altona as good investment options under the $500,000 mark.

“Altona and Maribyrnong did perform relatively well although not as strong as predicted,” says the firm’s latest Month in Review report. “However, we note that Footscray West has actually fallen by approximately 6% for the year to March 2011.”

A word of warning, though: HTW points out that these suburbs are heavily dependent on first home owners, so short-term value growth may depend on how well this market segment recovers.

HTW also suggests that there are housing investment opportunities on a smaller scale in outer-lying suburbs with good infrastructure and established communities.

“[These] offer the potential for further subdivision and development,” says HTW. “This leads to exponential capital growth, which may not be available to the majority of their more expensive inner-city counterparts.”
Close
HOUSE UNIT
$390,250 N/A
4.34% N/A
15.80% N/A
6.62% N/A
$320 N/A
78 N/A
4.26% N/A
53.37 N/A

Source: CoreLogic

DSR Score for property investment : Good (H), Good (U)
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Demographics
Total population 5220
Median household income ($/weekly) 962
Median age of persons 36
Median housing loan repayment ($/monthly) 1400
Average household size 3
  • Census Count Percent(%)
    5-14 years 661 12.7
    25-34 years 768 14.7
    35-44 years 693 13.3
    45-54 years 714 13.7
    55-64 years 807 15.5
    Others 1577 30.2
    Age Group
    Census Count Percent(%)
    Registered Married 1956 50.1
    Not Married 1771 45.4
    Defacto Relationship 178 4.6
    Social Marital Status
  • Census Count Percent(%)
    Australia 2394 49.3
    Netherlands 196 4.0
    Philippines 184 3.8
    Viet Nam 572 11.8
    Other 505 10.4
    Others 1007 20.7
    Country of Birth
    Census Count Percent(%)
    Buddhism 687 14.4
    Christianity 2944 61.7
    Islam 453 9.5
    Other Religious Groups 71 1.5
    No Religion 573 12.0
    Others 46 1.0
    Religious Affiliation
  • Census Count Percent(%)
    $400-$599 190 12.8
    $600-$799 183 12.4
    $800-$999 163 11.0
    $1,000-$1,249 185 12.5
    $1,500-$1,999 179 12.1
    Others 580 39.2
    Gross Household Income (Weekly)
    Census Count Percent(%)
    Not in the labour force 1674 42.6
    Employed, worked full-time 1271 32.3
    Employed, worked part-time 619 15.7
    Unemployed, looking for work 218 5.5
    Employed, away from work 150 3.8
    Person Characteristics
  • Census Count Percent(%)
    Professionals 211 10.3
    Technicians & trades workers 313 15.3
    Clerical & administrative workers 280 13.7
    Machinery operators & drivers 299 14.6
    Labourers 391 19.1
    Others 550 26.9
    Occupation
    Census Count Percent(%)
    Infants/Primary 373 33.7
    Secondary 306 27.6
    Technical or Further Educational Institution 121 10.9
    University or other Tertiary Institutions 170 15.3
    Other type of educational institution 75 6.8
    Others 63 5.7
    Type of Educational Institution Attending
  • Census Count Percent(%)
    Separate house 4782 96.5
    Semi-detached, row or terrace house, townhouse 101 2.0
    Flat, unit or apartment 72 1.5
    Caravan, cabin, houseboat 0 0.0
    Improvised home, tent, sleepers out 0 0.0
    Others 0 0.0
    Dwelling Structure
    Census Count Percent(%)
    Fully owned 654 40.9
    Being purchased 618 38.6
    Rented 323 20.2
    Other tenure type 4 0.3
    Tenure Type
Census 2011, ABS
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