Aerial images show rapid growth of Melbourne’s fringe

30/05/2017

PRICES in Melbourne’s new estates are rising at a record rate as first-home buyers converge on the urban fringe to live the Australian dream.

Demand is red-hot for the city’s most affordable land allotments — and showing no signs of slowing down, according to industry figures.

Aerial images provided exclusively to the Sunday Herald Sun by Nearmap reveal the scale of the new communities that have popped up rapidly in the past five years.

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(An aerial view comparing Mernda in 2012 and present day. Pictures: NearmapSource:Supplied)

Urban Development Institute of Australia Victorian chief executive Danni Addison said affordability was a key factor boosting demand in growth areas.

“After two years of very high demand in Melbourne’s greenfield land market, prices have risen at an unprecedented rate, and stock levels are at a record low with only 21 days of available trading stock,” she said.

“The demand isn’t dying down, so we will continue to see increasing prices across the market unless there’s a big boost on the supply side of the equation.”

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(An aerial view comparing Tarneit in 2012 and present day. Pictures: NearmapSource:Supplied)

Melbourne lot prices rose 6.3 per cent to a median price of $250,000 in the March 2017 quarter, according to the latest RPM Real Estate and UDIA Urban IQ report.

 That’s a substantial rise of 15.2 per cent from the same quarter in 2016.

RPM Real Estate research manager Michael Staedler said demand was “easily outstripping” supply in Melbourne’s growth areas.

“(They are) absolutely paramount to maintain a healthy level of affordability and access for all buyer types and budgets,” he said.

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(An aerial view comparing Armstrong Creek in 2012 and present day. Pictures: NearmapSource:Supplied)

“This is particularly important to first-home buyers, with our research suggesting they make up the lion’s share of buyers at around 60 per cent.”

Stockland advertises a three-bedroom house and land package in Tarneit “from $388,800.”

Meanwhile, the median house price in Sunshine, a few train stations closer to the city, is now out of reach for many.

It rose 58.2 per cent to $685,000 in the three years to February 2017, according to CoreLogic.

Max Brown agent Jason Bertram said demand for land in Mernda’s 122-lot Rivendell Heights estate “had been crazy” since it launched about five months ago.

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(An aerial view comparing Clyde in 2012 and present day. Pictures: NearmapSource:Supplied)

“We’ve got a lot of first-home buyers and investors. I think people are drawn to what you can get for the price, the location to the city and the (planned) train station as well coming to Mernda has been a big help,” he said.

Josh McDonald, a local real estate agent with Armstrong Real Estate, and Maddison Bannerman have lived at Armstrong Creek for about three years.

“In the last 12 months it’s gone from about $420,000 median house price to about $470,000-$470,000-plus now, it’s growing massively,” McDonald said.

He said proximity to the Surf Coast and affordability made the suburb appealing to buyers.

(Source: Scott Carbines. http://www.news.com.au/finance/real-estate/melbourne-vic/aerial-images-show-rapid-growth-of-melbournes-fringe/news-story/0de09c1dfde974b42ca18b0d39c48bba) 




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