Average house prices in Melton are almost $220,000 less than nearby Rockbank, which is only 10 kilometres away on the same train route.
New Real Estate Institute of Victoria data reveals the average house price in Melton is $218,000 less than in Rockbank.
REIV chief executive Geoff White said that while Melton was deemed more affordable, he expected house prices in affordable growth suburbs such as Melton to increase as the state and federal governments committed to infrastructure funding.
He said many buyers were looking at opportunities to enter into the property market at prices they can afford while still being connected to a V/Line service to Melbourne.
“Many of these areas, especially towns within commuting distance of the city, are also recording solid annual price increases and are poised for future growth,” Mr White said.
Public transport links are a “traditional” driver of buyer interest and price growth, according to Mr White.
He expects house prices from Melton to Deer Park to increase considerably once the Ballarat railway line is duplicated.
“Any major infrastructure projects – be it rail or road – that assist local home owners normally support price growth,” Mr White said.
“The projects draw buyers towards these areas as they look to leverage the benefits of better access, and potentially reduced travelling time, delivering real benefits to these local communities.”
YPA director Shane Spiteri said the Melton market was “just booming” at the moment, with Sydney investors snapping up properties in the municipality.
Many outer western suburbs residents are selling their $600,000 properties to buy in Melton, according to Mr Spiteri.
“What you’re getting here is value for money,” Mr Spiteri said.
“This is the hottest market Melton’s ever been in.”
Domain chief economist Andrew Wilson said Melton’s affordable status, and the recent infrastructure investments, were appealing to home buyers.
“Train transport has a premium status in Melbourne,” Dr Wilson said.
“It’s always been regarded as premium … It’s been a strong year for the Melbourne market.
“As prices rise, this pushes buyers out to places where they can afford.”
