West rides property boom

Taylors Hill and Caroline Springs house prices jumped by a staggering 30 to 40 per cent in the past five years.

The median house price sits at $561,000 in Caroline Springs and at $625,000 in Taylors Hill, according to Domain data.

Melbourne’s outer west is expected to experience mammoth growth as the state government moves to abolish stamp duty for first home buyers purchasing properties for less than $600,000 from July 1.

Domain Group chief economist Andrew Wilson said the scrapping of the stamp duty would mean first home buyers would be able to borrow more money from banks, and that would likely drive up house prices.

“The middle and bottom of the property market has been really strong over the last 12 to 18 months,” he said.

“That part of the market has boomed all the way throughout Melbourne’s north and west because of its affordability … compared with the eastern suburbs.”

Despite banks tightening rules around investor lending, Dr Wilson said there was still a “strong appetite” for investors to buy into the Melton market, where rental yields are high.

Dr Wilson’s comments follow Real Estate Institute of Victoria data that has revealed strong growth in the Taylors Hill and Melton property market, with median house prices increasing by 16 and 15.8 per cent, respectively.

REIV president Joseph Walton said that while City of Melton was home to some of Melbourne’s most affordable suburbs, the area was “well positioned” for future growth as the inner-west continued to “gentrify”.

“The city’s outer west will continue to benefit from improved road and rail infrastructure, with Melton South experiencing solid price growth following the completing of its train station,” Mr Walton said. “Home to some of the city’s most affordable suburbs, the City of Melton continues to offer first home buyers the ideal opportunity to get a foothold on the property ladder for less than half the citywide median.”

Caroline Springs Barry Plant manager David Lussi said Melton’s eastern corridor was well serviced with arterial roads and the addition of a new train station.

He said improvements to other major roads, including Westwood Drive, work on which has been allocated funding in this year’s Melton council budget, would continue to drive up property prices in the area.