Affordable Melbourne home prices rise after Albo’s First Home move

A western suburbs house price surge has added thousands of dollars to Melbourne’s most affordable property markets a month after the expansion of the First Home Guarantee scheme.

PropTrack data shows the city’s most affordable suburbs have had four and five-figure price hikes from October to November.

Melton, the city’s most affordable suburb, has gone from typical homes selling for $500,000 to $501,000.

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But neighbouring Melton South, the next cheapest option, has surged almost $15,000 from $528,750 to $543,500.

There’s been a $10,000 jump in Kurrunjang, where a typical house now costs $560,000, and in Dallas, now up to $580,000, plus Brookfield which is up to $595,000.

Further four-figure increases were notched in Harkness, Melton West, and Thornhill Park.

The federal government expanded the first-home guarantee scheme to remove a cap on the number of places available as of October 1, as well as removing caps on incomes for the program.

13 McIvor Court, Melton West, recently sold for $687,500 — with first-home buyers and investors competing for the home.

Buyers can also now purchase more expensive homes, with the Melbourne threshold now $950,000.

The expansion comes as property investor activity surges.

Barry Plant Melton’s Ned Nikolic said there had been an uptick almost immediately after the scheme’s expansion.

“It’s everyone crashing into each other at the same time, first-home buyers and investors,” Mr Nikolic said.

“With first-home buyers getting that scheme boost … they have come out of the woodwork.”

21 McKenzie St, Melton, has attracted a solid number of first-home buyers with its $429,000-$469,000 asking price.

He noted investors, especially those from interstate, were still often claiming the keys but in some instances Melbourne’s wannabe homeowners were gaining the upper hand.

The agent pointed to 21 McKenzie St, Melton, which was attracted strong interest from first-home buyers, as well as 13 McIvor St, Melton West, which had competition from both types of buyers.

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