Melton West house prices will soar, despite the suburb’s reputation as Victoria’s most affordable, a real estate agent has claimed.
The median house price of $331,000 in the June quarter was up 3.5 per cent on the same period last year, Real Estate Institute of Victoria (REIV) figures show.
And Raine and Horne Melton director Kieran Carson said demand for the suburb had soared in the past six months following council and state government investment nearby.
He expects house prices to continue rising as demand builds.
Mr Carson said houses in the suburbs also yield good rental returns for landowners.
“In terms of value for money, [Melton West] is as good as you can get,” Mr Carson said.
“Land prices in other areas are well and truly in excess of $200,000.
“Here, you’re getting a block of land and a house for just over $300,000.
“Affordable suburbs don’t last that long,” he said. “We’re expecting a significant price adjustment, just because we haven’t had that price adjustment as much as other suburbs. Demand is there – in the last six months stock levels have dropped and demand has increased, producing a perfect storm for a vendor.”
The expansion of the Woodgrove Shopping Centre, upgrades to roads and announcements of new children’s facilities have boosted the suburbs appeal, Mr Carson said.
“It’s the family kind of facilities and parenting facilities that make it attractive.
“Typically, buyers here, they need those kinds of amenities … because they’re young families.”
Mr Carson said families were able to build their “dream homes with white picket fences” at Melton West without breaking the bank. They flock to buy 500 to 600 square-metre blocks, to build 25-square metre homes, but Mr Carson said there’s not a lot of demand for units and villas.
REIV chief executive Geoff White said Melton West offered the “ideal combination” of large land lots and affordable prices.
“Given price increases across the city, we expect buyers to continue to seek value, gravitating towards outer Melbourne suburbs.”
