In December 2015, the Melbourne suburbs of Newport and Preston were anticipated to see an increase of activity and growth. Six months on and that has proven to be the case with average house prices jumping considerably since the end of 2015.
To paint a clearer picture for homebuyers and investors we’re going to look at the reasons these two neighbourhoods are ones to watch in 2016.
Nestled between Williamstown and Yarraville, and 7kms to the CBD, Newport had a median house price of just over $840,000 in December of 2015 according to propertydata.com.au. As of March 2016, the median price is $984,500. An increase of just over $100,000 in just four months.
The key to this growth is the proximity to premium amenities while still being affordable compared to neighbouring suburbs. The suburb has a lot to offer, including cafes and parks, while still being perfectly placed to get the best of Yarraville and the waterfront of Williamstown. It’s just a few minutes’ drive between the two, as well as having easy access to the CBD via public transport.
As a result, the suburb is coming more onto buyer’s radars and competition has been strong. Buyers can get excellent value in the suburb without giving up too much, if anything, of the lifestyle they might be looking for in Williamstown or Yarraville.
The northern suburb just nine kilometres from the CBD is seeing the spill over from buyers who might be looking for a premium location in Northcote and Thornbury, but want affordability. The median has moved up roughly $60,000 between December 2015 and March 2016 to $870,000 according to propertydata.com.au. Although not as much as Newport, the growth is still significant.
Like Newport, buyers are getting good value for money in Preston when comparing stock closer to the CBD in Northcote and Thornbury.
Buyers can get something for $100,000 less without really sacrificing on position – they’re only a couple of kilometres up the road and Preston is a quality established suburb in its own right. Pockets south of Bell Street are desirable, while anything west of St George’s Road is highly sought after.
Preston also offers buyers plenty of options in terms of the stock available, catering to numerous lifestyles. There’s a good supply of Victorian period homes, Californian Bungalows, and townhouses.
Families looking for a bit more room are catered for, as well as downsizers or first home buyers. There’s a great multicultural mix plus plenty of transport, parks, Northland shopping centre, access to schools and close to La Trobe University Bundoora, and of course there’s the Preston market.
These two examples serve to show that buyers looking for a particular lifestyle or at a particular area may find better value for their money just around the corner in neighbouring areas without having to give up too much, if anything at all.