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Melbourne Outer Northern Suburbs

Written on the 15 October 2017 by James Cagney

(A three minute read)

In July 2017 data suggested Melbourne's property market was beginning to outpace Sydney's, and this trend was  likely to continue as affordability, higher interest rates for investors  and migration patterns all favour the southern city, say experts.

In June, Melbourne's median dwelling price rose 2.71 per cent, compared with Sydney's increase of 2.21 per cent, according to CoreLogic.
In the year to 30 June, Melbourne price growth also outpaced Sydney's. Melbourne's median dwelling price rose 13.7 percent (to $913,060), while Sydney's median dwelling price rose only 12.2 per cent (to a median price of $1,118,020).

And there are other signs the Melbourne market is outpacing Sydney's.

Cameron Kusher, senior research analyst with CoreLogic, said there are four reasons the Melbourne real estate market is likely to see prices grow more strongly than Sydney's prices.

Firstly, Melbourne prices are much lower than Sydney's, so Melbourne prices are unlikely to see any correction to the same degree as Sydney.

Second, interstate migration into NSW is waning, while it is continuing to strengthen in Victoria, partly because of housing affordability, says Kusher.
The 2016 Census revealed that Melbourne is growing more quickly than Sydney, with the southern city adding 1,859 people per week between the 2001 and 2016, and Sydney adding only 1,656 people per week. And while Sydney remains the largest city, with a population of 4.8 million, Melbourne isn't far behind with a population of 4.5 million.

The third reason Kusher gave for Melbourne's relatively strong performance is there are more properties advertised for sale in Sydney. "There are currently 13.3% more properties advertised for sale in Sydney than at the same time last year, while in Melbourne listings are just 0.1% higher than a year ago," said Kusher. So people looking to buy in Sydney have greater choice, which keeps price growth contained, he said.

And finally, Kusher says that higher interest rates are likely to have more of an impact in Sydney, because a higher proportion of the market is made up of investors. CoreLogic's May data showed that investors accounted for 55.1% of new mortgage demand (excluding refinances) in NSW, and 44.6% of new mortgage demand in Victoria.
And Cameron Kushner was right.

Now to Northern Melbourne to Craigieburn market I promised I would send you.  Herron Todd White (HTW) one of the largest valuers in Australia report on what prices of house have been in the last month. This is fact not fiction what you will read in newspapers. For more information on the false information published by the media read>>> PROP CON. 

HTW ratifies what Corelogic says about the rapid growth of Melbourne suburbs compared to Sydney. HTW says as the eastern and western suburbs become more expensive the northern suburbs are becoming more attractive. HTW states that "Overall, Melbourne outer Northern suburbs have not drastically changed over a decade but rather evolved."

HTW goes on to say " while Melbourne outer northern suburbs are still considered to be relatively low cost, blue collar suburbs with lower levels of household income compared to the eastern suburbs, they are also attracting young couples expanding their families and first home buyers for instance construction of Merdna railway line) and a number of modern estates currently in development or nearing completion."

Let's talk about Mernda North East of Melbourne. Residex (Core Logic) states that the Median value of house in the suburb is $491,000 and Units $345,000. That makes the northern suburbs affordable for Melbourne's. The top 5 streets in the area can fetch as much as $754,722 and the lowest 5 street can be as low as $363,275. That presents bargain hunting for first home buyers and investors. Prices in the suburb are up 5% for houses and units.

Another suburb in Northern Melbourne suburbs is Greenvale only 30 minutes close to the city than Mernda. The median value of house in the suburb is $705,000 units $420,000. The top 5 streets in the area is a high as $1,671,024 (Residex). It does not a brain surgeon to know where the future growth in Melbourne is going to be.

Going North West the suburb of Sunbury is similar to Mernda. The median value of houses is $454,000 and units are $351,000. No brainer once again as this suburb is on 24 minutes from Greenvale and presents a great buy.,

Let's talk about Craigieburn the main suburb northern of Melbourne. The median value of house prices is only $466,000 and units are $347,000 . The top 5 streets in the are is as high as $1,633,123 (Residex). This suburb is only 12 minutes from Greenvale.

First home buyers and investors buy in the  Northern outer suburbs before it becomes like the frenzy that overtook the western suburbs of Melbourne. For more information and properties in the Northern outer rim please call James Cagney on +61 416 137 645 or click >>> HERE .

DISCLAIMER

This is not financial advice. You should not act solely on the basis of the material contained in this article for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
Please note that the information herein is of a general nature only and is not intended as specific advice for any particular person or entity.

This information was written and compiled by James Cagney.  The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Asset Finance Pty Ltd.

 

 


Author: James Cagney
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