Melbourne homes under $400,000
03 September 2015 by News Desk
The number of residential properties on sale in Melbourne under $400,000 has fallen by over 60% in the past decade.
The percentage of the Melbourne market under $400k has shrunk from 69.2% in 2005, to 35.38% in 2010 and is now just 23.8%, according to a new report by CoreLogic RP Data.
A rise in the cost of building land has, in part, fuelled the rise in house prices across the city in the past ten years. But it’s a vicious cycle – as land costs rise, property prices rise, pushing up land prices even further.
Between 2005 and 2015, house prices in Melbourne have increased 88%.
Darrell Todd of thinkingaustralia says: “Affordable properties can still be found in Melbourne. Buyers have to be realistic and look for the outer suburbs where prices are a great deal less expensive than the inner city. In particular, look for commuting distance – anything less than 30 minutes from the city will be expensive.”
