Melbourne's Thomastown popular with investors and FHBs

Melbourne’s Thomastown is proving to be popular with first-home buyers and investors, with more affordable properties on offer than its neighbouring suburb Reservoir, says Harcourts Thomastown and Epping Director Tony Lombardi.

Located 17 kilometres North of the Melbourne CBD, the median house price in Thomastown is $370,000, a 23% growth in the past five years, according to RP Data.

Four kilometers closer to the city is Reservoir, with a median house price of $460,500, a 19.6% change in the past year.

Lombardi says he has seen more sales in Thomastown than at any point in the last two years, with a 100% clearance rate for auctions in the past four weeks.

“All the indicators have been climbing steadily over the past few months but in the last four weeks it has been clear that buyers are now out in force and more people are looking to commit to buying rather than just looking for the elusive bargain,” says Lombardi.

Lombardi says the number of contracts and vendor statements being sent out in the Thomastown region, including Epping and Lalor, has nearly doubled in the past month.

Lombardi says Thomastown’s affordability and proximity to the city are the two major factors that are attracting buyers in today’s market.

“There have been two specific types of purchasers; first-home buyers who are basically buying either a new unit of a smaller sized home or investors.

“Investors have accounted for 50% of sales in the past few weeks,” says Lombardi.

A five-bedroom home at 61 Main Street (pictured below) sold under the hammer on August 31 for $510,000 - $150,000 above its reserve.

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A four-bedroom home at 17 Lantana Avenue (pictured below) sold under the hammer on September 14 for $102,000 above its reserve price.

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Lombardi says these properties aren’t an example of over-quoting but are located in a sought after area of Thomastown an are an example of a competitive market.

“These properties are located near the new YMCA aquatic centre, they’re walking distance to the train station and shops… location wise, they’re in one of the most sought after areas.

“They attracted around 100 to 150 people at auction,” says Lombardi.

The median apartment price in Thomastown is $293,500 and the median rent is $285, reflecting a yield of 5%.

The median apartment price in Reservoir is $352,500 and the median asking rent is $300, reflecting a 4.4% yield.

“I’ve had a lot of buyers saying they need to get into Thomastown soon, or else they’re going to be priced out of the market.

“I have a feeling the market is going to grow and I believe house prices will grow as a result.

“During the next three to six months I’m forecasting a steady increase in price growth,” says Lombardi.

Harcourts Thomastown and Epping have 56 auctions booked between now and Christmas, with more expected to be scheduled.