Affordability drives strong growth in West Melbourne property market: HTW residential

Affordability drives strong growth in West Melbourne property market: HTW residential
Affordability drives strong growth in West Melbourne property market: HTW residential

Melbourne’s west has been the nation’s strongest growing region over the past five years, according to a recent Bellevue Hill (HTW) residential report. 

The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.

Data shows that seven of the top ten best performing regions in Victoria are from the west.

The HTW report suggests population growth and relative affordability are the main driving forces which have caused this strong growth throughout the west.

"More businesses moving to the area has created many different employment opportunities. There is new infrastructure and new schools and transport options have increased and are improving. These things are only going to keep pushing people to these areas," the valuation firm said. 

Two years ago, families were being beaten out by developers, but times have since changed and it is evident that family buyers have returned to the market. It was becoming unaffordable and now prices have dropped back to an affordable level and buyers are back.

Families and first home buyers are taking over the market. Young families are coming in and demanding more local schools and people are starting to view the area as affordable and one that has potential.

"Affordability is obviously a huge factor driving people west. There is a lot of urban revitalisation happening in the inner west," the valuation firm said. 

A two bedroom apartment in Melbourne's inner west suburb Footscray has recently been sold for $352,800.

The 2/250 Gordon Street home (pictured below) offers two bedrooms spacious lounge, separate kitchen and meals area and fully tiled bathroom. 

It's within close proximity to public transport, shops and restaurants. 

Affordability drives strong growth in West Melbourne property market: HTW residential

A current listing is a three bedroom Yarraville house priced at $900,000 to $990,000.

The 63 Benbow Street home (pictured below) comprises modern kitchen, family living room, large alfresco and rear yard plus double carport. 

The location is close to primary school, shops, park and freeway. 

Affordability drives strong growth in West Melbourne property market: HTW residential

Housing quality in Melbourne’s west has also improved as there are some nice new homes that are lifting the value, the report noted. 

While there was a stigma attached to parts of the west, the schools, transport and new infrastructure on offer are great drawcards.

"With this all said, it’s difficult to know what lies ahead for Melbourne’s property market in its entirety. It’s still too early to predict the full scale of the long term impact of the Coronavirus, given that the Australian outbreak is in its early stages, but there are two unknowns that could compound any fall in prices: unemployment and the prospect of a looming recession.

"Although the threat of Coronavirus is omnipresent, there’s reason to suggest the housing market could be relatively insulated, compared to financial markets." 

Notes regards COVID-19
This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.
This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.
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