![3 Nantilla Cres, Werribee - 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)
This three-bedroom house at 3 Nantilla Cres, Werribee, is for sale with a $595,000-$650,000 asking range through Ray White. The suburb is the most affordable inside a 25km-30km radius of Melbourne’s CBD with a $600,000 median house price, according to the Real Estate Institute of Victoria.
Victoria’s peak real estate body has calculated that Melbourne house prices now rise about $30,000 for every kilometre closer to the city you get.
While there are anomalies to the figures, the Real Estate Institute of Victoria shows families who have been priced out of one suburb by interest rate hikes in the past two years could account for the hit to their borrowing capacity by looking as little as 3km further out.
The research, based on December quarter 2023 data, also shows the city’s northwestern and western suburbs are far more affordable than its southeast and east — in addition to prices improving as you head further out.
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REIV senior vice president Sam Hatzistamatis said some suburbs bucked the $30,000 trend including Park Orchards and Wonga Park in the east and several southeastern postcodes and along the Mornington Peninsula, most likely due to the country-meets-city or coastal lifestyle they offered.
Mr Hatzistamatis said that with 13 interest rate rises since May 2022 reducing many buyers’ borrowing capacity, those wanting to settle a certain distance from Melbourne could instead look for a cheaper option offering a similar commute to potentially save big bucks.
“They have got the opportunity to say if affordability has dropped by $100,000, moving 3km out has negated that and moving 5km out puts you ahead,” he said.
With two bedrooms, 84 Commercial Rd, Footscray, listed by Sweeney Estate Agents, has a $965,000-$975,000 asking range. The suburb has the lowest median house price within 5km of Melbourne, at $982,500.
Listed by Jas Stephens Real Estate, this three-bedroom house at 72 Southampton St, Footscray, is on the market with a $880,000-$950,000 price guide.
Mr Hatzistamatis added the difference between 3-5km was usually only a train station or two.
Footscray’s typical $982,500 house value makes it the cheapest suburb within 5km of Melbourne. In contrast, Middle Park’s $2.88m median is the most expensive in the same distance.
Sweeney Yarraville and Footscray sales manager Niels Geraerts said the number of buyers looking in Footscray had quadrupled in the past decade.
“You can get a renovated house for $1.1m-$1.2m, which is very affordable for some young couples and first homebuyers,” Mr Geraerts said.
8 Honeydew Way, Rockbank, will be auctioned on March 27 by Local Expertz Realty Melton and Caroline Springs. The four-bedroom house has a $599,000-$658,900 price range.
Many buyers have a reduced borrowing capacity since the Reserve Bank of Australia began raising interest rates in May 2022.
For up to 10km away from the city, Braybrook’s $765,000 median sits within the reach of several government assistance schemes for affordability challenges, and is just a fraction of Toorak’s $4,426,600 median — the priciest in the metropolitan area.
Driving 15km away from Melbourne’s CBD, Ardeer in the west’s $610,000 median is the most inexpensive — but stretch up to 20km away and Dallas near Broadmeadows has middle-of-the-road homes at $510,000.
A three-bedroom house, 94 Maxweld St, Ardeer, will head under the hammer on March 16 at a Douglas Kay Real Estate Sunshine auction. The home is being advertised for $590,000-$630,000.
At the outer edges, from 23km-30km from the CBD, Werribee’s $600,000 typical house price is two thirds lower than Wonga Park’s $1.82m.available.
Ray White Werribee director Michelle Chick said demand for homes had remained consistent across her 22 years working in the area due to its affordability and 44km distance to Geelong, along with the suburb’s sought-after schools and proximity to attractions including Werribee Open Range Zoo, Werribee Park and Mansion and Werribee South beach.
As a general rule, Melbourne’s house prices decrease by about $30,000 for every kilometre out of the CBD. Picture: NCA NewsWire Andrew Henshaw.
“You would think you would pay a lot more for everything the suburb offers,” she added.
Hodges Werribee director Tony Vercher added that most of his clients were first-home buyers.
“You can get a nice four-bedroom, two-bathroom house on a 400sq m block for between $600,000-$650,000, that’s about standard,” Mr Vercher said.
For units within 5km of the city, Flemington’s $392,500 median is lowest and East Melbourne’s $900,000 highest.
The Real Estate Institute of Victoria (REIV) is the peak body for the state’s real estate professionals. Picture: NCA NewsWire/Max Mason-Hubers.
Most affordable and expensive Melbourne suburbs to buy property, based on distance from the CBD:
Most affordable suburbs for houses
<5km from Melbourne CBD: Footscray $982,500 median house price
5-10km from Melbourne CBD: Braybrook $765,000
10-15km from Melbourne CBD: Ardeer $610,000
15-20km from Melbourne CBD: Dallas $510,000
20-25km from Melbourne CBD: Rockbank $560,000
25-30km from Melbourne CBD: Werribee $600,000
Most expensive suburbs for houses
<5km from Melbourne CBD: Middle Park $2,880,000 median house price
5-10km from Melbourne CBD: Toorak $4,426,600
10-15km from Melbourne CBD: Canterbury $3,195,000
15-20km from Melbourne CBD: Black Rock $2,325,000
20-25km from Melbourne CBD: Park Orchards $1,928,500
25-30km from Melbourne CBD: Wonga Park $1,820,000
Heading to auction on April 6 is 9 Hinkler St, Braybrook. The Douglas Kay Real Estate listing has a $770,000-$800,000 asking range.
Most affordable suburbs for units
<5km from Melbourne CBD: Flemington $392,500 median unit price
5-10km from Melbourne CBD: Travancore $393,000
10-15km from Melbourne CBD: Albion $350,000
15-20km from Melbourne CBD: Notting Hill $425,000
20-25km from Melbourne CBD: Hoppers Crossing $420,000
25-30km from Melbourne CBD: Werribee $440,000
Most expensive suburbs for units
<5km from Melbourne CBD: East Melbourne $900,000 median unit price
5-10km from Melbourne CBD: Kew East $1,107,500
10-15km from Melbourne CBD: Brighton East $1,511,250
15-20km from Melbourne CBD: Beaumaris $1,440,000
20-25km from Melbourne CBD: Vermont $952,500
25-30km from Melbourne CBD: Edithvale $855,000
Source: Real Estate Institute of Victoria, December 2023 quarter
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