Victoria dominates list of affordable property investment opportunities
A new report has highlighted the top 10 suburbs for buyers on average salaries in Australia, with Victoria dominating the list, taking seven of the ten spots.
Over the last two years, Australia’s property market has seen unprecedented price hikes for both renters and aspiring buyers.
HOOD.ai’s Buy or Rent on a Budget Report has highlighted the top 10 suburbs for buyers on average salaries in Australia, with Victoria dominating the list, taking seven of the ten spots.
According to the report, the median sale prices for the top ten suburbs range from $460,000 to $500,000, with Tyabb in Victoria having the lowest median sale price and Surrey Downs with the highest.
All suburbs listed range from 17 to 68 kilometres from their capital city’s CBD, showing potential buyers that trying to strike the balance between affordability and desirability can mean moving away from your state's capital city.
In eight of the ten suburbs identified in the report, units were seen as the better choice over houses, with only Maslin Beach and Surrey Downs in South Australia being suburbs where houses were the preferred choice.
Zara Taylor, a real estate specialist with Ball Realty in Queensland, said property price increases over the last few years have forced first-home buyers to choose units over houses.
“The price of free-standing homes has gone up so much that many first home buyers can only afford units now,” she told Australian Property Investor Magazine.
Victoria dominates top ten
Real Estate Institute of Victoria CEO Quentin Kilian told API Magazine that there are many factors contributing to potential buyers opting for units over houses.
“Units typically offer a lower price point, making them more accessible for people getting into the market,” he said.
“The relatively lower price point can also be attractive for people who may want to live in a particular suburb where houses may be outside their budget.”
He also mentioned that majority of these complexes offer lifestyle amenities such as pools and a gym.
Top 10 affordable suburbs for buyers
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Mr Kilian agreed that the suburbs listed in the report were also great choices for investors.
“Many of the locations listed have a lot to offer investors, such as a reasonable price point, proximity to transport, and adjacent suburb hot spots,” he said.
“The solid growth seen across these suburbs annually is a promising sign for those looking to purchase, rent or develop in these areas.”
With the high uptake of remote working over the last two years, and Australians valuing space over proximity to the CBD, Mr Kilian shared that this has positively impacted the outer suburbs in Melbourne.
“The shift from city living to seeking a tree-change for the family home means that the outer ring of Melbourne is becoming a more realistic option for many who are looking for a more spacious home.”
Data released by REIV suggests that the unit market in suburbs mentioned in the HOOD.ai’s report show signs of strong annual growth, especially Manifold Heights (33.7 per cent) and Sydenham (13.1 per cent).
Mr Kilian also said that in suburbs such as Sunbury, Cranbourne North and Grovedale, the housing market remains the best choice for buyers compared to units, as these suburbs saw an annual median house price increase of more than 10 per cent.
Alongside the suburbs in the HOOD.ai’s report, REIV said aspiring buyers in Melbourne have a lot of choices when looking for a home according to their data, with over 20 suburbs within metropolitan Melbourne being identified to have an annual median price of less than $500,000.
Gold Coast units sought after
The only suburb in Queensland identified in HOOD.ai’s report was Pacific Pines, one of the most sought-after suburbs on the Gold Coast, with a median sale price of $477,000 for a unit.
Ms Taylor, from Ball Realty in Queensland believes Pacific Pines makes a great choice for potential home buyers.
“There are many family-friendly unit complexes with excellent amenities within walking distance to schools,” she said.
“Pacific Pines is the halfway point on the Gold Coast and very close to the M1 if you need to go south to the tweed coast or north to Brisbane.”
Monthly mortgage payment as percentage of income
Ms Taylor added that the suburb was a great choice for investors.
“It has many highly sought-after schools, which are always popular with families,” she said.
“The family-friendly unit complexes rent really well, making them a great choice for investors.”
Deidre Mastroyannis, a Sales Consultant with Century 21 SouthCoast, believes Maslin Beach, a southern coastal Adelaide suburb, is an excellent pick for aspiring buyers and investors, if they can get their hands on a property.
“There is only a limited number of properties available in Maslin Beach,” she said.
“The suburb is renowned for being a highly sought-after coastal location, given the gorgeous bay, and the expansive beautiful clean beach protected by the red ochre cliffs, a dog-friendly beach on the northern side plus large family-friendly playground.
“The relaxed lifestyle coupled with the array of unique properties add to the character and charm of this special seaside hamlet.
“I believe it will continue to have growth potential and amazing future potential for investors.”
Alongside Maslin Beach, Ms Mastroyannis said Adelaide offers many opportunities for first-home buyers.
“Whether you are looking to live within walking distance to beautiful beaches or closer to the country townships of Willunga, McLaren Vale, Mount Compass or Myponga, these suburbs are still only 10 to 15 minutes drive to the coast,” she said.
“These suburbs also offer excellent facilities, public and private schools, shopping, boutique cafes, restaurants and wineries.”
Ms Mastroyannis added that these locations offer great opportunities, whether looking to purchase an established home or build or renovate an older home.
“Units offer a more budget-conscious approach, on average 18.4 per cent of income is dedicated to mortgage repayments across the capitals compared to 27.1 per cent for a house.”