Inner Melbourne more affordable if you know what to look for

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Those looking to find a house in Melbourne’s more prestigious suburbs may be able to save themselves hundreds of thousands of dollars if they can live with a little less space.

While houses in many of Melbourne’s inner city suburbs carry a median price tag of more than $1m, figures from the Real Estate Institute of Victoria (REIV) show buyers could get themselves a six-figure saving by settling for a two-bedroom house.

The largest saving can be found south east of Melbourne CBD in Elsternwick, where the median price for a two-bedroom house sits at $929,000.

For many, that may still seem like an expensive purchase, but it is a whopping $648,500 cheaper than the suburb’s overall median house price of $1,577,500.

To the north east of the CBD, two bedroom houses in Ivanhoe carry a median price of $921,000, a $474,000 reduction on the suburb’s overall median house price of $1,395,000.

In the city’s north, the median price for a two bedroom house in Essendon sits at $912,000, which is $465,000 lower than overall median in the suburb.

In Moonee Ponds the median house price currently sits $1,265,000, but buyers who opt for a two-bedroom house will face a median price of $820,000, a saving of $445,000.

In Caulfield South, the REIV’s figures show the median house price $1,388,000, while the median two-bedroom price is $946,500, a saving of $441,500.

Port Melbourne’s median price for a two-bedroom house comes in at $955,000, while the overall median house price is $425,000 more at $1,380,000.

Buyers in Ascot Vale, Williamstown, Richmond and St Kilda can shave between $341,000 and $214,000 the overall median house prices for those suburbs by opting for a two-bedroom house.
Suburb Median house price Median two-bedroom house price  Price differential
Elsternwick  $1,577,500 $929,000 $648,500
Ivanhoe $1,395,000 $921,000 $474,000
Essendon $1,377,000 $912,000 $465,000
Moonee Ponds $1,265,000 $820,000 $445,000
Caulfield South $1,388,000 $946,500 $441,500
Port Melbourne $1,380,000 $955,000 $425,000
Ascot Vale $1,141,000 $800,000 $341,000
Williamstown $1,155,000 $815,000 $340,000
Richmond $1,222,500 $970,500 $252,000
St Kilda $1,190,000 $976,000 $214,000
Source: REIV

REIV chief executive officer said the price difference shows why people should look deeper than the obvious statistics when considering purchasing in a particular area.

“These are leafy suburbs where buyers can live alongside their million-dollar neighbours on a boutique budget,” White said.

“Two-bedroom homes are experiencing solid price growth in many of these suburbs, offering value and a yard at a price point significantly below the suburb’s median,” he said.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

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