A home like 22 Messmate St, Lalor, could be your ticket to a compromise-free lifestyle without the million-dollar mortgage you might expect for a house in Melbourne.
Melbourne has been named as one of Australia’s best city’s for homebuyers today, with house hunters given a hit list of suburbs where quality of life doesn’t mean breaking their budget.
But researchers have warned some of the city’s 10 best options for an affordable house that’s actually worth the money could be priced out of contention before the end of the year — as well as the areas where property seekers have a bit more time to bag a bargain.
PRD Real Estate research has named Albanvale as the most affordable place to buy a house in a suburb that’s easy to love with a $597,500 median price. It was followed by Ardeer at $650,000 and Lalor at $685,000.
RELATED: Tiny South Yarra block of land smaller than a cinema screen listed for $1.2m+
Victorian suburbs owners never want to leave turning them into millionaires
PropTrack: Melbourne vacancy rate lifts for third month, rent crisis could ease in 2025
For those with a bit more cash to splash Altona North, $870,000, Maidstone, $897,500, and Watsonia, $876,000 also made the top 10 suburbs that best blend accessible prices and liveability.
But PRD chief economist Diaswati Mardiasmo warned that with low new housing construction in the three suburbs, and with the trio already close to Melbourne’s about $941,000 median house price, they would likely catch up within the next six months.
![60 McIntosh Rd, Altona North - for herald sun real estate](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
60 McIntosh Rd, Altona North, goes to auction at noon June 8 seeking $800,000-$880,000.
“And that only takes you to the end of the year,” Dr Mardiasmo said.
“But for me, Melbourne has more to go when it comes to clawing itself up from the bottom of the property clock than other capitals. It’s in a good place if you are a buyer.”
With limited new homes coming through Dr Mardiasmo said even more affordable Fawkner could soon see rises in its $762,000 median price.
The list of suburbs picked out by real estate researchers at PRD are all within 20km of the CBD and have good public transport, green spaces, shopping centres, healthcare and low unemployment.
Homes were then ranked for affordability based on a contrast with the city’s $603,142 typical loan size.
Buyers not quite ready to make a move today might be better off setting their sights on Albanvale where 180 new townhouses could keep the median house price from rising too rapidly.
AFFORDABLE AND LIVEABLE SUBURBS — HOUSES
Albanvale – $597,500
Ardeer – $650,000
Lalor – $685,000
Altona North – $870,000
Fawkner – $762,000
Laverton – $590,000
Maidstone – $897,500
Tullamarine – $720,000
Watsonia – $876,000
Williams Landing – $810,000
Source: PRD Affordable and Liveable Property Guide
Ray White’s Raphael Calik-Houston agreed that Fawkner could be in for a boost in the near future, noting he didn’t believe it would be an affordable option by this time next year.
Mr Calik-Houston said the quiet suburb had a creek along its eastern boundary, meaning it was almost exclusively for locals and also benefited from a popular shopping village.
He’s got 4 Frederick St going under the hammer at 10am Saturday and said it had the eye of mostly first-home buyers and young families.
4 Frederick St, Fawkner, will test the market at 10am on June 8 with a $750,000-$800,000 asking price.
Sweeney Altona agent Barry Seignior said he too was expecting Altona North home prices to climb, with buyers being squeezed out of nearby suburbs including popular Newport, Williamstown and Seddon.
A new shopping centre on Millers Rd, and a 15 minute trip to some of the west’s best beaches also added to the allure.
He added that many buyers were also turning to older homes like 60 McIntosh Rd, which goes under the hammer at noon Saturday, with a view of renovating or replacing them with residences that better met modern needs.
88 Evergreen Ave, Albanvale, is listed for sale at $750,000-$810,000.
Alternatively Williams Landing’s $810,000 typical home value is also more likely to remain stable in the short term with 113 lots for sale and 435 new units expected.
But while these suburbs might provide buyers with more time, she warned them against complacency and waiting for a cash rate reduction.
“The truth is that we have so much demand and no supply,” Dr Mardiasmo said.
For those where house prices appear out of reach, the research also pointed to units in Bundoora which typically cost $455,000, Kensington, $490,000, or Williams Landing, $405,000 — in third place due to higher amounts of new housing planned nearby that could slow future price growth.
However, Dr Mardiasmo warned some of these areas too could lost their affordability advantage and surpass the citywide $613,000 median unit price in the near future.
They include Carnegie, Fawkner, Hawthorn East and Glen Huntly.
AFFORDABLE AND LIVEABLE SUBURBS — UNITS
Bundoora — $455,000
Kensington — $490,000
Williams Landing — $405,000
Brunswick East — $555,000
Carnegie — $600,000
Fawkner — $587,500
Glen Huntly — $582,000
Hawthorn East — $590,000
Laverton — $515,000
Murrumbeena — $541,000
Source: PRD Affordable and Liveable Property Guide
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: The Block winners go all in on $5m gamble
Sorrento stunner sold from wealthy Bruce Terry estate, but $44m Brighton listing still lingers
Eltham: Former Australian cricket player Adam Dale and wife Nickie farewell family home