Some of Victoria’s most affordable suburbs are showing signs strong price growth is just around the corner, as agents urge buyers to get in before it’s too late.
The Carrum Downs and Werribee unit markets topped a list of 20 metro and regional areas where prices are tipped to surge, according to Well Home Loans’ Green Shoot report.
The list was chosen based on three metrics that indicate a future boost in demand: days on market and available housing stock decreasing and asking prices increasing over the past quarter.
Sandringham, Melton West and Apollo Bay rounded out the top five.
Carrum Downs has a $480,000 median unit price – but the report states that could quickly rise as a whopping 38.4 per cent dip in stock levels amplifies buyer demand.
A typical unit in the southeastern suburb was also being snapped up 3.7 per cent quicker in the last quarter, taking just 26 days to sell.
OBrien Real Estate Carrum Downs’s Ben Qautrini said he had almost “nothing left on the market” after his remaining listings were snapped up sight unseen during lockdown.
He said the area’s affordability was a major drawcard, attracting first-home buyers, investors and downsizers.
“A lot of people are still wanting a house and land, but as houses are becoming that bit more expensive they are coming to units as the next best thing,” Mr Qautrini said.
“And Carrum Downs has the proximity to Frankston and Seaford beaches and access to all the major freeways.”
Unit markets in Werribee ($400,000 median asking price) and Sandringham ($700,000) were also heating up due to similar drops in housing stock levels.
The latter had already recorded a 1.7 per cent increase to its typical asking price.
Melton West was the top house market showing the clearest signs of shooting up, as stock levels fell 35.8 per cent and days on market dropped 7.5 per cent.
Neighbouring suburb Melton also made the list.
Ray White Melton director Joe Mavrikos said the western market had “really exploded” in the last few years, and noted it was “now or never” for buyers on a budget to buy in.
“While it has gone up in value, it is still one of the Melbourne suburbs that has great value for money, but not for much longer,” Mr Mavrikos said.
“Inquiry is at an all-time high. Even in lockdown, we’ve sold seven properties sight unseen.”
He recently sold Amanda Berry’s three-bedroom property in Melton South for $445,000, as she upsized to a bigger block nearby in Melton West.
Ms Berry said she considered moving regionally to find a larger backyard for her dog, but decided to remain in Melton West for its “family friendly” vibe – as local schools, new developments and talks of a future hospital made it the ideal place to lay down her roots.
Other spots with growth potential included Bendigo, Altona, Dandenong North and Highett.
Well Home Loans chief executive Scott Spencer said the report had identified a diverse range of promising housing markets with potential “strong median-term growth”.
“(It shows) no matter where in Victoria you live, there might be a nearby market where prices look set to accelerate in the not-too-distant future,” Mr Spencer said.
The Well Home Loans Green Shoots Report identified the top 20 growth markets based on data from Suburbtrends.
TOP 20 SUBURBS POISED FOR PRICE GROWTH
Suburb, property type, median asking price
1. Carrum Downs – units – $480,000
2. Werribee – units – $400,000
3. Sandringham – units – $700,000
4. Melton West – houses – $470,000
5. Apollo Bay – houses – $825,000
6. Bendigo – houses – $515,000
7. Melton – houses – $437,890
8. Altona – units – $714,000
9. Dandenong North – houses – $650,000
10. Highett – units – $607,800
11. Doveton – houses – $525,000
12. Alfredton – houses – $486,952
13. Laverton – houses – $580,000
14. Geelong – units – $690,000
15. Altona North – units – $750,000
16. Brighton East – units – $1.4m
17. Kew – units – $860,000
18. Blackburn – units – $685,000
19. Kalkallo – houses – $534,387
20. Diggers Rest – houses – $508,000
Source: Well Home Loans Green Shoots Report, data from Suburbtrends
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