June Quarter figures from the Real Estate Institute of Victoria (REIV) show that as of June 30, Melbourne was home to numerous suburbs where house prices were well below the citywide median of $725,000.
According to the REIV, Melton West is the city’s most affordable suburb, with a median house price of $331,000, followed by Werribee at $355,000.
Those looking for a way into the market under $400,000 could also do so in Cranbourne ($380,000), Wyndham Vale ($385,000) and Pakenham ($393,000).
For those with a slightly higher budget, opportunities for just above the $400,000 mark can be found in Craigieburn at median house price of $426,000, Mernda with a median of $430,000 and Frankston with a median house price of $437,500.
Caroline Springs, with a median house price of $500,000 rounds out the REIV’s list of most affordable suburbs.
REIV chief executive officer Geoff White said while affordability may make the suburbs attractive, they have good prospects too as low interest rates help price growth pick up further out from central Melbourne.
“These areas continue to offer value for money with all of the most affordable suburbs experiencing solid capital growth in the past year,” White said.
The June quarter was a mixed one for the suburbs on the REIV’s most affordable list, but yearly growth figures from Real Estate Investar show solid growth in the suburbs on the list.
Wyndham Vale had the strongest year, with the median house price up 10.71% according to Real Estate Investar, while the median house price in Craigieburn increased 9.86%.
Werribee was the next best at an annual rate of growth of 7.95%, while the median house price increased 7.14% in Mernda.
| Suburb | Median house price | Quarterly growth | Yearly growth* |
| Mellton West | $331,000 | -2.1% | +5.03% |
| Werribee | $355,000 | -8.7% | +7.95% |
| Cranbourne | $380,000 | +1.3% | +2.38% |
| Wyndham Vale | $385,000 | +9.2% | +10.71% |
| Pakenham | $393,000 | +1.9% | +6.91% |
| Craigieburn | $426,000 | +2.8%% | +9.86% |
| Mernda | $430,000 | +0.9% | +7.14% |
| Frankston | $437,500 | +3.9% | +6.75% |
| Caroline Springs | $500,000 | -13% | +6.66% |
While the REIV figures show there are affordable suburbs in Melbourne, white said with some further digging, buyers can find affordable options that may initially appear out of their price range.
"While the suburb’s median house price may be out of your budget, finding the right home is important,” he said.
“Houses with renovating potential or slightly smaller properties in good suburbs offer great buying in the current market”
