Buying a home, especially as a first-time buyer, can be challenging, with much depending on timing. Right now, Victoria offers an ideal window for those looking to enter the market. Sellers are struggling to achieve their desired prices, creating an opportunity for buyers ready to take the leap.
After years of difficulty, first-home buyers in Victoria are finally seeing a chance to get their foot in the door. Victoria now leads the country in first-home purchases, driven by a tight rental market and rising property prices that are prompting buyers to act sooner. Additionally, government support schemes, grants, and expanded eligibility have made it easier for first-time buyers to secure their place in the market.
According to realestate.com, the number of first-home buyers in Victoria is currently surpassing other states, and the state accounts for a 32% share of all new loans to first-home buyers. The count of new loans to first-home buyers in Victoria is 14% above decade average levels, after increasing 13% in the year to July 2024 compared with the previous year, the largest increase of any state.
Which suburbs should you have your eye on?
The current property market has shifted significantly, with many more people looking to sell than there are buyers actively purchasing. This imbalance between supply and demand has put pressure on prices, leading to noticeable declines in several suburbs compared to recent years. For potential buyers, this means there’s a larger selection of properties available and more room to negotiate prices, especially in areas where values have dropped the most.
For example, Dandenong, a busy southeastern hub, offers a median price of $631,900—about $450,000 less than nearby areas. On the opposite side, Laverton’s median of $566,300 is also far below neighbouring Altona Meadows at $723,800 and Seabrook at $757,400.
This means there’s now a greater opportunity for those who have been struggling to get into the property market or who have their heart set on a particular area.
According to the September 2024 Domain House Price Report, these Melbourne suburbs are getting cheaper and might even see more of a price decline next year. Here are the unit median prices with their annual change:
- Clayton South: $462,500, -11.6%
- Balaclava: $540,000, -12.2%
- Fairfield: $492,500, -12.4%
- Maribyrnong: $422,500, -13.8%
- Burwood: $655,000, -14.9%
- Sunshine: $470,000, -15.3%
- Chadstone: $540,000, -24.5%
In regional areas, Yarriambiack Shire in northwestern Victoria saw the steepest drop, with prices down 22.9% over 12 months to a median of $185,000. Corangamite followed with an 11.9% decline to $415,000. Prices also fell in Mansfield (down 10.9%), Strathbogie (down 9%), Bass Coast (down 8%), Hepburn (down 6%), and Surf Coast (down 4.6%).
The market is forever changing and it’s good to be mindful of the shifts that happen so you can get in when the time is right. If you’re looking to buy a home in Victoria, this might be the perfect time for you.
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