Buying in Melbourne suburbs that border the city's most-exclusive neighbourhoods can deliver seven-digit savings, according to data from the REIV.
Buying a home in one of Melbourne's so-called 'bridesmaid suburbs' - a suburb that borders the city's most-exclusive neighbourhoods - can deliver buyers significant savings, according to new data from the REIV.
Buyers priced out of inner-city East Melbourne – where the median house price is currently just under $4 million – can save an impressive $2.7 million by purchasing in neighbouring Collingwood. The price difference between East Melbourne and Collingwood is one of the largest for adjacent suburbs in Melbourne.
A seven-figure price difference was also seen in Toorak, where the median is $4,475,000, and nearby South Yarra, where the median house price is a relatively modest $1,856,000.
With a median house price of $731,000 Heidelberg West was a more affordable option than nearby Ivanhoe where buyers needed $1,580,000 to get into the market – a 116 per cent difference.
Source: REIV.
In the city’s outer suburbs, buyers could purchase a home in Hallam (median price $594,000) for almost half the price of those in nearby Narre Warren North ($1,141,500).
Buyers should have an open mind when house hunting, said REIV President Richard Simpson, and be aware that adjacent suburbs can offer better value than the suburbs that might be front of mind.
“For buyers priced out of their preferred location, surrounding suburbs can deliver similar lifestyle and amenities for significantly less.”
“Many of these traditional ‘bridesmaid’ suburbs have experienced strong price increases in recent years, as buyers look for new growth areas to enter the market," he said.
"Future price growth in these areas is expected," added Simpson.
Read more about the REIV's data on the Melbourne property market:
Melbourne records 13.2% house price growth in 2017: REIV
Three-bedroom houses outperforming all other Melbourne property types: REIV
A second bathroom can add six figures to the price of your home: REIV