According to a new report by Aussie Home Loans and CoreLogic, affordable homes still exist in Melbourne, despite the significant price increases.

Three suburbs within 20km of the Melbourne central business district still offer affordable median house prices below $400,000: Coolaroo (median value of $338,598), Dallas ($346,688), and Meadow Heights ($379,207).

Prospective homebuyers who want to live within 10km of the city have to contend with median values above $700,000 and even $800,000, unless they opt for Braybrook or Maidstone.  

Even though the affordable portion of Melbourne’s property market is shrinking, the situation is far less dire than Sydney’s. John Symond, founder and chief executive of Aussie Home Loans, said Melbourne’s median house price of $693,886 was $300,000 cheaper than that of Sydney’s. There are only two suburbs left within 20km of the Sydney central business district with medians below $800,000.

Melton, situated 34km west of the central business district, is the cheapest place to buy a house in metro Melbourne (the median value is $284,915).

Meanwhile, prospective homebuyers who want to live within 20km of the central business district and are willing to pay slightly north of $400,000 should consider Broadmeadows, where the median value is $404,546.

The Maribyrnong area offers four of the five most affordable suburbs within 10km of the central business district: Braybrook (median value of $613,399), Maidstone ($697,649), West Footscray ($763,177), and Footscray ($774,319).

Albion, situated 13km west of the central business district, is the cheapest suburb for units in Melbourne (median value of $230,454).

Kingsville’s units are the most achievable within 10km of the central business district (median value of $363,296), followed by West Footscray ($372,646), Carlton ($381,544), and Travancore ($389,321).
 

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