Buying near the next train station out can save millions for Melbourne home buyers

Buying near the next train station out can save millions for Melbourne home buyers
Buying near the next train station out can save millions for Melbourne home buyers

Property buyers can save a six-figure sum by purchasing in the next suburb along the train line, according to an analysis of new median house price data from the Real Estate Institute of Victoria.

In the September quarter, the Belgrave line recorded the largest price difference between stations with Canterbury’s median house price ($2,875,000) almost a million dollars more expensive than those serviced by the Chatham station in Surrey Hills ($1,930,000), the REIV data shows. The two stations are less than a kilometre apart.

As an illustration, a four-bedroom townhouse at 61A Broughton Road, Surrey Hills (picture above) has been advertised for sale on realestateview.com.au for $1.525 million. 

The listing agents are Tim Heavyside and Harley Toyle of Fletchers.

Buyers who purchased a home in Heidelberg, rather than the previous suburb on the Hurstbridge line, Eaglemont, can expect to save up to $896,000. 

Savings of around $600,000 are also possible further on the South Morang line by purchasing in Thomastown instead of nearby Thornbury, serviced by the Keon Park railway station. 

In Thomastown, a four-bedroom house on a 695 sqm block at 8 Barbara Court (below) is up for sale with a price tag of $790,000.

Buying near the next train station out can save millions for Melbourne home buyers 

A number of city locations have delivered six-figure savings when compared with the median house price in the previous suburb on the train line, according to REIV president Richard Simpson.

“Many of these areas are only one or two kilometres further from the city but provide a more affordable alternative for those who may have their heart set on buying in a particular suburb.”

In fact, one stop can make a difference of up to a million dollars, suggests the REIV data. Commuters were able to save more than half a million dollars by purchasing one stop further along the Werribee train line in Laverton, rather than Westona.  

In Noble Park on the Pakenham line, buyers were able to purchase homes for $142,500 less than the previous suburb of Springvale, serviced by the Sandown Park station.

“Areas that offer value without the need to compromise on location or amenities are highly attractive to buyers, with many of these bridesmaid suburbs also experiencing solid capital growth in recent years.”

Simpson added that with a majority of inner and middle suburbs having median houses prices above $1 million, there was more competition further from the CBD.

“Homebuyers willing to commute for a few extra minutes each day are able to consider a greater number of suburbs, including new growth areas which may not have peaked in terms of price growth.”

“Access to public transport is a key factor for many buyers, and can increase the value of a property.”

 

Tags: 
Melbourne Property market

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