Where to find a house in Melbourne for less than $400,000

Where to find a house in Melbourne for less than $400,000Currently, Melbourne’s median house price was $610,000 based on sales in the December quarter. Naturally, this captures a lot of attention, however, it’s worth remembering that there are lot of houses that sell for a lot more affordable prices.

Over the past year, just under 30 per cent of all houses in Melbourne sold for less than $400,000.

The suburbs which recorded the highest of these affordable sales were in the growth areas; Pakenham, Frankston, Craigieburn Hoppers Crossing, Werribee, Sunbury and Carrum Downs. Land is less valuable in these areas due to the distance from the CBD and its availability. These factors allow developers to bring houses onto the market at more affordable prices.

It is interesting to note that there are a number of suburbs within 15km radius of the CBD where more than 50 per cent of sales were below $400,000. These are: Sunshine West, Sunshine North, Broadmeadows, Ardeer and Tullamarine.

Glenroy, Reservoir, Fawkner and Sunshine also has reasonable proportions of sales for under $400,000.

Surprisingly, around one in ten sales are in Pascoe Vale, Box Hill and Footscray are under $400,000. While that may not be the predominate sales price, this result does show that with some dedicated house hunting it is possible to buy a house at an affordable price within 15km of the CBD.

It would be rare to find a house under $400,000 and within 10km radius of the CBD. Footscray has the highest at 10 per cent. Most other suburbs within 10km of the CBD have less than 5 per cent such as Coburg where there were only 12 sales were under $400,000.

Robert Larocca
RP Data Victoria Housing Specialist

About Robert Larocca

Robert Larocca has built a profile over the past eight years as an expert on the Victorian residential property market. He worked for the REIV both directly and as a consultant over 8 years acting as a spokesperson, managing its research department and public policy. He has been a media and government relations consultant and spent a decade working across the three levels of government including as a Councillor and Mayor in the City of Moreland. He has well developed leadership skills in the not for profit sector and has been the Chairperson of CERES Community Environment Park for 9 years.

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