St Albans in the North West of Melbourne has been named as one of Melbourne's 'property hotspots' for 2016, according to a new research report.
PRD Nationwide Research's Property Hotspots Melbourne 2nd half 2015 report has listed St Albans, Heidelberg West, Altona North, Fawkner, Hughsdale and Maidstone as the suburbs to watch next year.
The report determined Melbourne's hotspots by taking into account the annual median price growth of house and unit between 2014 and 2015; the aggregate estimated value of residential, commercial and infrastructure project developments to commenced in 2015 onwards; plus the average days on the market and average vendor discounts.
"Melbourne has recorded strong growth in median prices throughout 2015 due to lower interest rates and increased confidence," the report said.
"With investors and owner occupiers remaining active, first home buyers are being priced out of the inner market. However, outer suburbs of Melbourne are seeing an increase in residential and infrastructure developments, which is facilitating affordability and connectivity to the CBD."
- St Albans is located in north west, approximately 25km from the CBD, with a median house price of $408,000. The report stated the suburb was "ideal for first home buyers". "In 2016, it is expected that $263 million worth of developments will commence". The rental yield for homes is 4.2 per cent for houses and 5.0 per cent for units. The suburb is set to benefit from the recent state government announcement to remove 50 of level crossings in Melbourne, including two in St Albans. They will aid the value of residential developments, ease traffic congestion, and ensure the safety of residents.
- Heidelberg West is located in the City of Banyule, approximately 17km from the CBD, with a median house price of $515,000. The report stated: "In 2016, a $50M redevelopment of the town square will commence, which will provide the suburb with a library, community spaces, residential housing and a vibrant commercial sector." The rental yield in Heidelberg West is 3.5 per cent for houses, and 4.6 per cent for units.
- Altona North is located in the southwest, approximately 10km from the CBD, with a median house price of $629,500. The report stated: "In 2016, approximately $175M worth of projects are set to commence." The rental yield for houses is 3.4 per cent and 3.9 per cent for units.
- Fawkner is located in the City of Moreland, approximately 15km from the CBd, with a median unit price of $377,000."There is approximately $32.2M worth of project development in the pipeline due to commence in 2016," the report said. The rental yield for houses is 3.9 per cent and 5.0 per cent for units.
- Hughesdale is situated in the City of Monash and is approximately 19km from the CBD, with a median unit price of $659,000. "In 2016, approximately $200M will be spent on the construction of the Hughesdale Railway Station, providing easier connectivity to the Melbourne CBD and surrounding suburbs," according to the report. The rental yield for houses is 2.5 per cent and 3.6 per cent for units.
- Maidstone is located in the west, approximately 8km from the CBD, with a median unit price of $465,000. The report says Maidstone is an "ideal suburb for both owner occupiers and investors". The rental yield for houses is 3.1 per cent and 4.4 per cent for units.
ALSO SEE: State By State Property Markets Roundup April 2016