Are you looking for a house, but is having trouble in looking for one that fits the bill? Obviously, homebuyers one that fits their shopping criteria — budget, location, and establishments within, such as lifestyle malls, playgrounds, or schools — and making them shy away from top suburbs. However, according to a new data, even first-time homebuyers can live in their dream suburb, as reported by News.com.au.
According to the Real Estate Institute of Victoria research, homebuyers can save a lot—millions even—and still have a place to live in within Melbourne’s most desirable suburbs. Instead of houses, the way is to get an apartment in the area. Comparing median house and unit prices within Melbourne’s leafy east and other trendy suburbs, such as South Yarra, Fitzroy North, Richmond, Northcote and Brunswick, the research revealed a staggering difference. The research noted that the biggest split is $3.66 million in Toorak.
REIV president Richard Simpson said the majority of suburbs in Melbourne currently has median apartment prices below $600,000, while a typical Toorak apartment with a $940,000 median is worth less than a quarter of an average-priced home worth $4.6 million in the suburb.
Other suburbs that offer big savings are Hawthorn (a difference of $2.107 million between median house and unit prices), Caulfield North ($1.744 million), South Yarra ($1,672,500 million), Balwyn ($1.63 million) and Brighton ($1.615 million).
Experts said that when stamp duty concessions started last June, there has been an influx of first-home buyers in the unit and apartment market. Due to the skyrocketing house prices, others were left to let go of their Great Australian Dream of living or moving to Melbourne.
Meanwhile, CoreLogic head of research Tim Lawless said the influx has contributed to price gains in the market. According to the company’s Hedonic Home Value Index, there was a 7.5 per cent increase in unit values over the past year, outperforming houses at 6.7 per cent.
“The unit sector appears stronger than the house market because the more affordable prices have propped up demand,” he said. “Rather than buying new houses, which are mostly getting built on the outskirts of the city, first-home buyers are choosing high-density options.”