Good news for first-time buyers! Property prices in one Australian city are falling so fast there are more than a DOZEN suburbs where units are cheaper now than five years ago
- Melbourne property prices dropping fast, with suburbs cheaper now than 2014
- In the inner city suburb of Abbortsford, unit prices fell 22 per cent in five years
- Other areas in city saw median property price fall between 14 and 19 per cent
- Price drops are not all doom and gloom and are good news for first-time buyers
Property prices are falling so fast in Melbourne that units in more than a dozen suburbs are cheaper than they were five years ago.
Housing data shows falls of up to 22 per cent since 2014.
The inner suburb of Abbotsford saw the biggest fall with units averaging just $450,000.
The median price in Travancore also took a hit of 18 per cent, meaning a property worth $425,000 in 2014 will now fetch $350,000.
Inner city suburb, Abbortsford, (pictured) saw property prices drop 22 per cent over the last five years
Windsor, (pictured) in Melbourne’s centre, has seen property prices drop 14 per cent
Central Melbourne suburb, Windsor, dropped 14 per cent, while Bundoora, in the city’s north, saw a decrease of almost 10 per cent.
But it’s not all doom and gloom, according to Graham Cooke from Finder – who compiled the latest figures.
The price drops are actually good news for first time home buyers, he said.
‘The barrier for first home buyers entering the market is shrinking. People that may have previously been pushed out of the property circle are now getting the option to buy,’ he said.
The decrease is even more marked when looking at comparisons between the 2018 and 2019 median price.
The median property price in Tranvancore (pictured) also took a hit of 18 per cent since 2014
In St Kilda, where prices have dropped almost 40 per cent, a house worth nearly 1.4 million just one year ago is now worth just over $800,000.
The cheaper prices are tempting more Aussies to enter the property market, with traffic to Finder’s first home buyers pages jumping 60 per cent in the last year.
For those hoping to take advantage of the cheaper prices, Mr Cooke has some advice.
Bundoora (pictured) in Melbourne’s north saw a decrease in its median property price of almost 10 per cent over the last five years
‘If you are considering buying make sure you have a game plan. There will be more competition among other potential first time buyers, with investors still largely hanging back,’ he said.
‘Focus on your savings and try and get home loan pre-approval so you’re in with a chance,’ he continued.
As well as the massive drops in Abbotsford and Travancore a total of 12 Melbourne’s suburbs boast cheaper prices than 2014.