Inner city Melbourne doesn't offer much in $500,000 property range: HTW

Inner city Melbourne doesn't offer much in $500,000 property range: HTW
Inner city Melbourne doesn't offer much in $500,000 property range: HTW

The residential market in Melbourne and inner eastern suburbs has remained steady over the 2015/16 financial year, however, recent restrictions on money leaving China and foreign investors borrowing in Australia has created some uncertainty, according to valuation firm Herron Todd White's July 2016 residential market report.

CBD, City Fringe and Inner to Middle Eastern suburbs

With some banks stopping lending to foreign borrowers, the apartment market has begun to flatten and there are concerns about oversupply with an excess of 10,000 apartments to be completed within the city of Melbourne in 2016/17, it says.

The report explores what a first home buyer or investor can buy for half-a-million dollars.

"$500,000 will not buy you a lot of housing within the CBD or the inner east, however, there are some options. $500,000 in the Melbourne CBD can get you a two-bedroom one-bathroom apartment with a car space," says HTW.

A little further out in the city fringe, you can comfortably get a one-bedroom one-bathroom apartment with a car space for under $500,000. Further out, for under $600,000 you can get a good sized two to three-bedroom unit in Box Hill or Blackburn in Melbourne’s middle east.

"We have been unable to find a single sale of a detached dwelling in the Inner to middle east under $500,000. It is unlikely that these types of properties will still be available at this price point in the short to medium term."

A rental return between 4 percent and 5 percent is likely for CBD and between 3% and 4 percent in the inner to middle eastern suburbs.

As an example of a recent sale in the sub-$500,000 range, a one-bedroom apartment (picture below) at 1710/83 Queens Road Melbourne sold for $475,000. 

Inner city Melbourne doesn't offer much in 0,000 property range: HTW 

 

 

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Melbourne Residential Market

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