Sunbury is one of Melbourne’s most affordable suburbs, but local experts believe that’s about to change.
Sunbury’s median house price was $452,500 as of June 30, making it the fourth most affordable suburb across Melbourne at almost half the citywide median of $822,000, according to Real Estate Institute of Victoria (REIV).
The suburb’s median house price has risen about $67,000 since December 30, 2016, up from $412,500.
And local real estate agents say there is “no question” the price rises will continue.
L. J. Whorlow First National Real Estate manager Patrick Franklin said the pace of change in local real estate was escalating.
“We just auctioned a property – we set the reserve at $355,000 and it sold for $413,000,” he said.
“We’re literally going back to properties we appraised three months ago and putting an extra $30,000 or $40,000 on them.
“Whilst Sunbury probably still is ranked fourth, I think that’s probably going to change, certainly in the next 12 months.”
Mr Franklin attributed the increases to a shortage of houses, record-low interest rates and the first-home buyer grant. He didn’t think expected rises in interest rates would “halt” the property price increase.
“Unless there’s a heap of stock that comes on to the market in the next six months – which I can’t see why it would – there’s still going to be a massive shortage of houses,” he said.
Sunbury’s Brad Teal Real Estate director Craig Teal said there was “no question” Sunbury house prices would rise, pointing to the area as being “value for money”.
He said Sunbury was appealing because it was not much further than Taylor’s Lakes and more popular suburbs from the CBD, but houses cost about $200,000 less.
Mr Teal said Sunbury had “all the facilities,” especially since Metro trains were introduced.
“The electric train has meant a hell of a lot,” he said.
REIV acting president Richard Simpson said strong competition for homes across Melbourne, particularly in more affordable areas, was being driven by “a sellers’ market”.
Mr Franklin said first home buyers were “losing the battle” to investors for houses below Sunbury’s median price.
“We sold one in Menzies Drive that had 13 offers on the property and not one of them was in the Sunbury postcode,” Mr Franklin said. “They were all out of town investors.”
