Following on from our first list of five affordable suburbs in Melbourne, there are still investment opportunities out there for buyers of all budgets.
Whilst many buyers will be priced out of Melbourne’s inner suburbs, the outer suburbs still have plenty of cheap property options available.
Here’s another list of five affordable suburbs in Melbourne where you can still buy a three-bedroom house for under $600,000.
1. Dallas
Melbourne’s northern suburbs continue to present value to investors, especially when you consider their distance to the city.
Dallas is no exception with median house prices still relatively low considering the suburb is only 18km away from Melbourne’s CBD.
Proximity to the city, Hume Highway and Tullamarine Airport has helped Dallas steadily build popularity with workers, families and retirees over recent years. Add to that good access to amenities and a nearby train line and you have a lot of potential for a developing suburb.
Melbourne has had many of its northern suburbs gentrify over the last few decades, which has driven house prices up wildly in the area. For investors with a long-term view, buying in Dallas whilst property is still cheap may lead to strong capital returns.
Median house price: $540,000
Median three-bedroom house price: $537,500
Median unit price: $459,000
Median rent (house): $335
Average rental yield (house): 3.2%
10-year average annual growth: 6.67%
2. Pakenham
Located 58km away from the CBD, Pakenham is just about as far away as it gets in the Melbourne metropolitan area.
Luckily, Pakenham has access to everything a community needs on its own, including good schools, sporting facilities and shopping centres. With Gippsland, the Dandenongs and the Yarra Valley around the corner, Pakenham is becoming a sought-after location for buyers seeking open spaces and quieter lifestyles.
Because of these attractions, Pakenham has been one of Melbourne’s fastest-growing suburbs this century, both in terms of population and property prices.
Despite the recent growth, Pakenham remains an affordable option for investors looking for steady gains and a strong rental yield.
Median house price: $680,000
Median three-bedroom house price: $600,000
Median unit price: $435,000
Median rent (house): $395
Average rental yield (house): 3.2%
5-year average annual growth: 8.13%
3. Wyndham Vale
Part of Melbourne’s fast-growing western suburbs, Wyndham Vale’s population has skyrocketed in recent years as improvements to transport and infrastructure have been put in place.
Despite being a suburb dominated by housing developments, Wyndham Vale has good access to amenities, parks, shops and Werribee zoo.
Using the relatively new Wyndham Vale Station, residents can travel to Southern Cross in under 45 minutes with the line expected to become part of the metropolitan train network in the near future.
With lower property prices and competitive rental yields, Wyndham Vale does present affordable opportunities for investors.
Median house price: $580,000
Median three-bedroom house price: $515,500
Median unit price: $438,250
Median rent (house): $350
Average rental yield (house): 3.3%
10-year average annual growth: 6.79%
4. Craigieburn
As Melbourne’s population continues to spread, the Craigieburn area is now a rapidly growing part of the city’s outer-northern suburbs.
With property in Craigieburn mostly coming through housing developments, there are still plenty of lifestyle attractions for residents to enjoy. Parks, schools, shopping centres and sporting facilities have helped draw younger demographics into the area, adding to the long-term prospects of the suburb.
In terms of employment opportunities, Craigieburn has several major employers in the area and a train station taking city workers straight into the CBD.
Whilst property prices in the area have experienced slower growth than in other parts of Melbourne, Craigieburn has maintained high rental yields and relative affordability, showing potential for steady capital gains in the coming years.
Median house price: $677,000
Median three-bedroom house price: $615,000
Median unit price: $436,000
Median rent (house): $350
Average rental yield (house): 4.2%
10-year average annual growth: 6.44 %
5. Deer Park
Deer Park is located only 17 kilometres from the CBD, making it both the closest and most expensive suburb on this list.
With a train station, amenities and plenty of employment opportunities nearby, Deer Park is poised to be a good performer for its relatively low price point.
Although Deer Park has historically experienced steady growth, property prices have slowed over the last five years due to new land being released in surrounding suburbs.
Even though this performance should be assessed with a level of risk, it could also present an opportunity for investors. As other suburbs in Melbourne’s west (such as Sunshine and Albion) continue to experience gentrification and growing demand, Deer Park may be next in line to benefit from Melbourne’s booming property market.
Median house price: $746,000
Median three-bedroom house price: $635,000
Median unit price: $495,000
Median rent (house): $388
Average rental yield (house): 3.0%
10-year average annual growth: 6.4%
