Melbourne property market a buyers' market; Footscray, West Footscray, Maidstone: Herron Todd White

Property valuers Herron Todd White say now is a good time to buy residential property in Melbourne with interest rates at record low levels.

"The Melbourne property market is currently a buyers' market, giving potential purchases the chance to shop around, and negotiate to find themselves a bargain.

“If you’re one of the many thinking about taking the metaphorical dive into property ownership and you want to be savvy about it, there are few things to consider.

“Properties with strong tenant demand and minimal holding costs will help to maximise you rental return; however homes with the potential for significant capital growth help to provide financial freedom in the long run."

The valuers say the equity built up can be used to purchase another property, which is beneficial for those looking to expand their portfolio.

For those looking for a house or unit with the potential for strong growth in the next four to six years, HTW says West Footscray, Footscray and Maidstone are showing positive signs for strong growth in the detached/semi detached market.

The suburbs are located within eight kilometres from the Melbourne CBD and are more available, with houses under $500,000.

Herron Todd White forecasts these areas to attract stronger demand due to their convenient location and as the trend towards high-density housing and gentrification continues.

Footscray is expected to profit from the proposed and current development in the area including the Footscray Railway Station redevelopment, Footscray Plaza Redevelopment and the Whitten oval Redevelopment, as well as being home to Victoria University, Western Hospital and Lonely Planet Publications.

Herron Todd White says the Melbourne 2030 planning strategy has designated Footscray as one of the major activity centres which are the preferred locations for future higher density residential land and mixed use development.

“All of these factors help to generate rental and investment demand in which the median house values are below that of surrounding areas which have already experienced gentrification and a shift in development plans.

"Like Footscray, Maidstone and West Footscray will benefit from the current and future development of the area.

"Both suburbs are located within eight kilometres of the CBD and offer greater housing affordability."

The valuers say a potential investor can expect to enter the West Footscray and Maidstone market with $535,000 and $498,000 being the median house price respectively.

Maidstone and West Footscray are located nearby the Maribyrnong Defence Site Redevelopment and the Maribyrnong/Footscray early years hub.

Areas of Maidstone also offer larger blocks and city views while development in West Footscray include the Barkly Village streetscape improvements and the West Footscray Railway Station redevelopment.

Image of Footscray by Steve Davidson, courtesy of Flickr.