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Sydney property investors eye Melbourne

Shutterstock

Shutterstock

Soaring property prices in Sydney have prompted investors in that city to cast their eyes further afield to more affordably priced homes in Melbourne’s northern suburbs.

Barry Plant Glenroy sales agent Halil Okur says local and interstate investors have been attracted to suburbs such as Broadmeadows, Coolaroo, Westmeadows, Dallas, Jacana and Meadow Heights because they are reasonably priced and only 15km to 18km from Melbourne’s central business district.

Mr Okur adds these homes, which are priced from $290,000 to $360,000 for a three-bedroom brick veneer home, have well established community services such as public transport, shops and schools.

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“There is a huge demand for these properties,” says the sales agent.

“It’s all happening. You get a decent block of land with a nice brick veneer home for around $300,000. The only problem we have is a shortage of stock. Not only local buyers are interested in investing but we have interstate buyers purchasing from Sydney.

“Last week, I had three buyers from Sydney attracted by the price for this area and the fact that it is only 15 minutes’ (drive) from the airport (Melbourne Airport). Last year, I sold 94 houses in the area and at least 30 were to Sydney investors. Most are renting them out, and some are knocking them down and building town houses (on the block). They perceive this area as the best value for their dollars.”

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Melbourne is increasingly luring interstate investors. Source: Shutterstock

Mr Okur says the real estate agency is expecting property prices in the wider Broadmeadows area to increase by 25 per cent over the next two to three years.

“It’s not going to stop (prices going up),” he says.

“It’s going to continue this way. Look at Sydney, a one-bedroom unit will cost you at least $400,000. And you are looking at $800,000 for a decent three-bedroom home about 20 to 25 minutes drive from the city of Sydney. If you look at the statistics Melbourne is always three years behind Sydney (when it comes to property pricing).”

PRDnationwide managing director Tony Brasier says: “I think any buyers – mainly investors – who are getting frustrated with Sydney prices are looking at cheaper locations to enter the market. That could be Melbourne or Brisbane.”

Median prices for Melbourne (three bedroom) for the last six month period:

Dallas – $321,000

Meadow Heights – $332,000

Craigieburn – $350,000

Broadmeadows – $360,000

Werribee – $313, 500

Hoppers Crossing – $330,000

Sunbury – $340,000

Truganina – $360,500

Median prices for Sydney (two bedroom unit):

• Belmore – $442,000

Campsie – $495,000

Penshurst – $531,250

Homebush West – $543,000

Sylvania – $537,500

• Parramatta – $540,000

Ryde – $550,000

Median prices for Brisbane (three bedroom home):

• Acacia Ridge – $237,500

• Algester – $305,000

Annerley – $316,000

Aspley – $330,000

• Boondall $358,000

• Camp Hill $390,000

• Brighton $380,500

Figures source: PRDnationwide

 


realestateThis story was brought to you by The New Daily using data and other information from its real estate content partner, realestateVIEW.com.au. To download the new free realestateVIEW.com.au app click here!

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