Investors wishing to reap quick capital growth in the Victorian market have been advised to focus on family-friendly houses in a city that has seen extensive apartment development in recent years.
Cate Bakos, of Cate Bakos Property, believes that houses in the western section of Melbourne’s Preston currently represent excellent value for investors wishing to make quick capital gains on their purchase.
Buyers who have been outpriced from neighbouring suburbs are attracted to West Preston due to its accessibility and family-friendly housing stock, she said.
“My pick would be a sub-$700,000 period house in West Preston, or south of Bell Street in Preston. This area is rapidly becoming sought after by those who are either priced out of Thornbury and Coburg, or who are looking for a family home with period features in an area where accessibility to city and airport is easy,” she said, explaining that “Preston boasts a lovely array of Californian bungalows and Edwardian-era homes.”
According to CoreLogic RP Data figures from March, houses in Preston had a median sale price of $684,500, representing an annual growth rate of 8.65 per cent.
The median price in Thornbury was $840,000, representing an annual growth of 14.29 per cent.
Coburg recorded a median price of $708,250, resulting in a 12-month growth figure of 13.32 per cent.
Although host to its own dining precinct, Ms Bakos explained that Preston has been capitalising on nearby Thornbury’s cosmopolitan attractions.
“The vibrant Preston market and abundance of great, diverse dining options make it an interesting area in its own right. The flow-on effect from Thornbury in relation to bars, restaurants and cafés is an exciting promise of things to come for West Preston,” she said.
Transport options in Preston comprise train, tram and bus. The area is also in proximity to several arterial roads heading toward the CBD.
“Value for money, particularly for character family homes within the 11-kilometre radius, is the draw card for this exciting patch in this fast-paced Melbourne market,” Ms Bakos said.