Where to buy property in Melbourne amidinfrastructure boomk
Date: September 07,2015
A number of inner-ring Melbourne suburbs are taking advantage of planned infrastructure projects to build affordable units with a higher rental yield than Sydney.
Maidstone in the inner west, with a median unit price of $465,000 – and rental yield at 4.5 per cent – is one suchsuburb that stands to benefit from a booming local infrastructure spend, agency PRD Nationwide's latest Melbourne Hotspots report said.
Developments such as the $105-million Miller Junction Business Park in Altona North, the first stage of which – with a construction cost of $35 million – has begun, is one of the catalysts for more residential development in theMaidstone area just 8 kilometres from the Melbourne CBD, PRD Nationwide national research manager Asti Mardiasmo said.
Melbourne already offers higher residential yields on both houses and apartments than Sydney, and across the Melbourne metropolitan area, commercial and transport infrastructure projects are creating opportunities for residential buyers who are prepared to look beyond established areas
"They're not too far out of the CBD," Dr Mardiasmo said. "You just have to think outside the box."The prices of these areas are still reasonable, well below the more commonly expected Melbourne price tag of between $750,000 and $1 million. Houses in Altona North, 14 kilometres outside the CBD, have a median price of $629,000.
On the other side of town, Banyule Council's The Mall in Heidelberg West, a $50-million redevelopment that will create a library and community facility, town square, residential buildings as well as retail and commercial facilities,will also stimulate more residential development. Houses in Heidelberg West have a median price of $515,000.
In St Albans, northwest of the city, the design and construction of two level crossing removals – part of an overall $480 million package by Leighton Contractors that includes similar work in Mitcham and Blackburn on the city's eastern suburbs – will also boost the value of residential developments, Dr Mardiasmo said. The median price of a house in St Albans is $408,000.
The ring of infrastructure spend across the city continues to Hughesdale, just south of Chadstone, the country's largest shopping mall, where about $200 million is due to be spent on building a new Hughesdale Railway Station next year.
"This kind of infrastructure will make commerce and human movement much more easier," Dr Mardiasmo said.
Those developments are already affecting price growth. In Heidelberg West, the pace of house price growth has picked up to 11 per cent from 9.8 per cent 12 months ago. A year ago, units in Maidstone were growing at a pedestrian 1.3 per cent. That has leaped to 14.8 per cent now.
In Hughesdale, where prices were nominally falling a year ago, they are now galloping ahead at almost 28 per cent, having risen to a median price of $659,000 from $512,000, PRD Nationwide said.