Melbourne buyers could save big with a small change in focus

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Buyers priced out of certain locales in Melboune may not have to look to far to find something that fits their price range, with figures showing large price discrepancies between neighbouring suburbs in the Victorian capital.

Figures released this week by the Real Estate Institute of Victoria (REIV) show that those who shift their buying focus a small distance could stand to save hundreds of thousands of dollars.

In inner city Melbourne, the REIV puts South Yarra’s median house price at $1.7m, however if buyers cross Yarra river into the neighbouring Cremorne they will be presented with a median house price that is $700,000 lower.

Moving to the northwest of the city, buyers put off by Essendon and its $1.3m median house price could save just over $500,000 if they turned their attention to the next-door suburb of Pasco Vale South where the median house price currently sits at $791,250.

To west of the CBD, those who can’t stretch their finances to the $1.26m median price tag carried by houses in West Melbourne may have better luck in the adjacent suburb of Footscray where the median is $791,250.

In the east, Mt Waverley carries a hefty median house price of $1.3m, while its neighbour Notting Hill is home to a median house price of $850,000.

Along Melbourne’s coastline, the pair of Mornington ($663,500) and Mount Eliza ($880,000) also has large discrepancies in their median prices.

At the more affordable end of the city’s market, Melton boasts a median house price of $261,000, more than $60,000 less than that of Melton West and its median price of $322,500.

REIV chief executive officer Geoff White said the figures show Melbourne’s suburbs that may have been considered “bridesmaids” in the past are now becoming pockets of value.

“In the past 18 months we’ve seen significant capital growth in what have always been these neighbouring suburbs. Buyers are increasingly looking for value and these new growth areas continue to offer that as well as first class amenities,” White said.

“The ripple effect is pushing up the price in these suburbs, which remain considerably more affordable than their neighbouring counterparts,” he said.

“For buyers priced out of their chosen area, it’s worthwhile looking at next-door suburbs which may offer similar lifestyle and amenities without the premium price tag.”

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