Melbourne first-home buyers forced to the fringe after being priced out [The Age, 2015]

I guess this article resonates as I am one of those priced out of the eastern suburb I called home for more than seven years. House hunting in that part of town led me to suburbs more than 40km from the city centre. The idea of being 80-100km away from the airport simply did not appeal. Hence, the giant leap and fingers crossed, meaningful spring from outer east to Melbourne’s new west. And truth be told, I have been extremely happy in this supremely multicultural part of town. It’s also wonderful knowing that being at the outer edges means we’re surrounding by what remains of the green belt, i.e. fresh air and rolling views of the horizon (once the construction dust settles).

It looks like this recent Age report couches Tarneit as a relatively value-for-money suburb, with Point Cook leading the way for first-home buyers as the suburb of choice in Melbourne’s new west. To them I say, enjoy the temporary accolade. I wonder where your train station will be? In Tarneit we can look forward to enhanced infrastructure and connectivity to both Melbourne and regional Victoria come April when Regional Rail Link is officially launched. We’ll see how our land/house prices adjust themselves when the time comes!

Despite a cheaper median price per square metre at $470 and an average land price of $189,000, Tarneit in the outer west is in less demand. The Age, February 21, 2015

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Melbourne first-home buyers forced to the fringe after being priced out
by Christina Zhou
Source – The Age, published February 21, 2015

The new frontier - most popular suburbs for newly released land. Source - The Age, February 2015
The new frontier – most popular suburbs for newly released land. Source – The Age, February 2015

Rising house prices are dashing the dreams of frustrated buyers, forcing them to the outer edges.

Pushed out of Melbourne’s property market, they’re concentrating their ambitions in areas such as Point Cook, Mernda and Craigieburn.

The demand for vacant land has also been buoyed by government incentives such as the $10,000 first home owner grant for purchase or construction of new homes.

And it appears house blocks at Point Cook, about 25 kilometres south-west of the CBD, have been the most sought-after in the second half of 2014.

Domain Group data shows a slice of the suburb costs $558 per square metre, the priciest of the top 10 most popular areas for vacant land, where a typical allotment would set buyers back by $270,000.

Despite a cheaper median price per square metre at $470 and an average land price of $189,000, Tarneit in the outer west is in less demand.

This is an excerpt of an article from the Age reproduced under fair use. Please click here to read the entire article at its source.

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