New figures have revealed homebuyers could save up to $2.4 million if they simply traveled five minutes further on the same train line.
Property hunters appalled by soaring property prices could save up to $2.4 million in Melbourne by simply traveling one or two more stops from their dream suburb.
The domain’s data revealed that choosing an extra five to 10 minutes’ commute on the same train line could save hundreds of thousands.
The Frankston Line, which takes commuters to Melbourne’s southeastern suburbs, offers the best deals for those who can’t afford the exclusive Toorak area.
A typical house in Armadale, which is just one stop from the upscale neighborhood, costs $2.53 million compared to Toorak’s $5 million.
This means buyers could save a difference of $2.4 million buying property in Armadale compared to Toorak.
Abercromby’s Real Estate Armadale director Jock Langley said age that the Toorak suburb was so popular because it offered a huge return on investment.
“Traditionally, property in Toorak performs around 5% better than any other area in the city, or across Victoria, over a period of time,” he said.
Melbourne’s Best Deals
East of Melbourne’s CBD, typical Canterbury property prices were over $3.1 million, but traveling just two more stops on the line from Belgrade to Surrey Hills could save people a place for 2 .2 million, which means savings of $912,500.
One of the best deals to be had is in Melbourne’s northern suburb of Reservoir, where buyers can buy a home for less than $1 million, with a typical price of just $840,000.
That compares to Preston which is just two stops away, but homes typically cost $1.15 million, giving buyers a savings of $310,000 between the two suburbs.
But estate agents warned that people should move in quickly as places within walking distance of the new Reservoir station were quickly taken over.
The situation in Sydney
In Sydney, the price differentials weren’t as big, but data from rea.com.au showed people could still get a bargain.
Up north, a typical home in Bella Vista costs $1.35 million, but going one stop farther on the subway to Norwest could save homebuyers $840,000, while there was a saving $810,000 buying in Chatswood versus North Ryde.
A Pymble house would cost people $3.2 million, but people could save $589,000 by scoring a property in Gordon.
Modest, but still significant, savings were offered for areas like Auburn where a house typically costs $1.04 million, but savings of $393,000 could be achieved by moving to Lidcombe, while buying in Canterbury instead. from Campsie could save someone $333,500.
South of Sydney, Miranda’s typical property price is $1.6 million, but savings of $330,000 could be offered by buying in Caringbah, while buying in Oatley would mean an extra $311,000 to the bank compared to Como.
Paul Ryan, an economist at REA, said the most desirable places to live used to be close to the city center where most people worked, but the pandemic has changed that.
“More space has become a bigger priority for people over the past two years as they have spent more time at home and they want bigger homes for home offices,” he said. at news.com.au.
“The fact that people don’t commute every day means they’re willing to compromise for a longer commute, but cheaper prices and bigger accommodations with a backyard.
“Just by moving one stop further down the line, home prices are almost a million dollars lower in some areas.”
What’s going on with apartments in Sydney?
When it comes to units in Sydney, the price gap wasn’t as big, but Mr Ryan predicts big things for the apartment market.
Most notable in the numbers were savings of $269,000 for buying in Lidcombe instead of Auburn and a difference of $254,000 between Chatswood and North Ryde.
Buying in Beecroft versus Pennant Hills saved someone $208,000, while in the mid-west, despite a shutdown separating them, buying in Sydenham saved someone $111,500 instead of shopping in Tempe.
“A stop further down the line can save $100,000 and for a lot of people (considering) the prices over the past two years, that makes a big difference,” Ryan said.
“In Belmore, the unit price is still under $500,000, which is a reasonably accessible price for first-time home buyers and with units, it’s still well-connected housing, which hopefully , will become more important this year.”
One of the big stories has been the underperformance of units as there hasn’t been as much demand as people want more space and investors have been spooked by the lack of immigration and the uncertainty surrounding demand from tenants, he added.
“So unit prices underperformed and the differential between houses and units was huge,” he said.
“But well-located units should outperform over the next two years to catch up to the extent we’ve seen home growth over the past two years.”