Melbourne suburbs where houses remain affordable for buyers

Melbourne suburbs where houses remain affordable for buyers.

Stretching the budget from a unit to a house makes sense for a savvy buyer in suburbs where the difference can be less than the cost of a new car.

New Ray White data reveals areas such as Doveton, Melton South and Hampton Park East, the gap between the median price for houses and units is as little as $58,000, opening the door for buyers to set their sight on a full-sized home.

Ray White chief economist Nerida Conisbee said the figures challenge the belief that units were always the most affordable entry point.

“In some parts of Melbourne, houses are still very achievable,” she said.

“If the gap is small, and you’re planning to stay for the long term, stretching for a house can be a very smart move.”

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Buyers were often surprised to find just how close house prices were to units in outer suburbs, Ms Conisbee said.

“It’s not everywhere, but where that gap is narrow, it’s absolutely worth looking at houses instead.”

In Doveton, the median unit price sits at $487,500, compared to $545,000 for a house, a difference of just $57,500.

Houses were within reach in Melton South, a gap of $62,500, Hampton Park East, $72,500, Werribee, $90,000, and Craigieburn, $110,000.

Ni Advocacy director and buyers advocate Kevin Ni said young buyers are bypassing units in outer suburbs like Melton and Hampton Park East to secure full-sized houses with better land, value and long-term growth.

Ni Advocacy buyers advocate Kevin Ni said home prices was forcing buyers to rethink old assumptions and location was no longer the only driver to get in to the market.

“When you’re looking at a $60,000 difference, and you get more land, privacy, and long-term growth potential, it’s worth stretching for the house,” Mr Ni said.

“We’re seeing some buyers turn away from units altogether in suburbs like these, especially with help from parents or the first home guarantee.”

235a McGrath Road, Wyndham Vale, with a $465,000-$495,000 price guide.

8 Epping Drive, Wyndham Vale, with a $640,000-$670,000 price guide.

Mr Ni said that while many younger buyers were drawn to units in inner suburbs for lifestyle, families and second-time buyers were increasingly seeking value on the fringe.

“People are getting smarter about trade-offs. They’re prioritising land and growth over postcode prestige.”

Independent economist Cameron Kusher said the price gap between houses and units remained relatively modest in some growth areas.

“In blue-chip areas, houses have skyrocketed and units haven’t kept pace,” Mr Kusher said.

14 Babina Ave, Melton South has a $609,000-$639,000 price guide.

40/17 Crestmont Drive, Melton South, has a $395,000-$420,000 price guide.

“But in the outer suburbs, that hasn’t happened to the same extent which is why we’re seeing more buyers opt for houses if the numbers stack up.”

While units would always have a place in Melbourne’s housing mix, Mr Kusher said first-home buyers were increasingly running the maths.

“Where the price gap is narrow, and lifestyle needs allow, it’s a no-brainer, go for the house.”

Additional reporting by Lydia Kellner

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