Northern Melbourne sees high demand from first home buyers and investors: HTW residential

Changes in both monetary and fiscal policy tend to have a more direct impact on the property market in suburbs located in the outer North Melbourne as purchasers in these areas are predominantly first home buyers and local investors, according to a recent Herron Todd White (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.

The HTW report notes most of these purchases are strongly influenced by either changes in first home buyer grants or interest rate changes.

"Some of the local drivers for the outer northern property market include the availability of more affordable housing and recent infrastructure expenditure", the valuation firm said. 

The commencement of the northern roads upgrade is a notable example of this and has helped to ease congestion in the area, improving buyer sentiment and proving to be a key local driver for demand.

Recent relaxation of lending since the banking Royal Commission has resulted in young families and first home buyers looking at more affordable dwellings that the outer north offers, the report noted. 

The effect of this appears to have aided in maintaining demand for property in the area as prospective purchasers begin to extend their search further north.

The report suggests new migrants to Melbourne opting to settle in the outer north also make up a significant portion of first home buyers.

"Properties below the $600,000 price point appear to do well in the outer north market as there is high demand from first home buyers and investors. High specification dwellings in predominantly first home buyer suburbs tend to remain on the market longer than average and are less sought after," the valuation firm said. 

A three bedroom house in Lalor has recently been sold for $590,000.

The 26 Vanessa Avenue house (pictured below) comes with modern kitchen, open plan lounge, renovated bathroom and double garage. 

It's located close to train station, buses, schools and shopping. 

A current listing is a Bundoora two bedroom unit priced at $487,000 to $535,000.

The 1/52 Nickson Street unit (pictured below) features large lounge, spacious kitchen, separate laundry, courtyard, and garden shed.

The home is situated within close proximity to  the Square, park, tram, universities and hospital.