Here’s how to potentially narrow your search
Location may be a big driver of property prices, but in any given suburb a few streets can be all that separates paying top dollar for a home or potentially scoring a bargain. Here’s how to use a tool to find pockets of value in any given neighbourhood.
Each suburb has its own median house price, and sites like realestate.com.au can provide a useful guide to median values for a particular postcode.
However, the median is obviously only the middle point in each suburb’s dataset – and it’s common for prices to vary widely across a single suburb.
Fortunately, there is an easy online tool that can help you identify more affordable pockets in the suburbs you’re looking to buy in.
New interactive price tool
PropTrack has developed an interactive property price tool that reveals the median values across different parts of each suburb.
The price differences can be surprising.
For example in Beecroft, on Sydney’s leafy north shore, the median house price is about $2.4 million.
But as PropTrack’s price tool shows, in certain parts of Beecroft, the median rises to more than $2.8 million.
Yet, several streets away, that figure is closer to $2.2 million.
There is a reason for the $600,000 difference.
The more affordable parts of the neighbourhood lie adjacent to the M2 Hills Motorway.
It’s a similar story in Melbourne’s popular inner suburb of Fitzroy North.
Known for its character-filled terrace houses, Fitzroy North has a median house value of $1.6 million.
But if you want to live near Edinburgh Gardens – the suburb’s attractive parkland – be prepared to pay closer to $3 million.
In Brisbane’s Fortitude Valley, the trendy James Street Market side of James Street has a median house price of $3 million, whereas across the road towards Brunswick Street there’s a median house price of under $1.9 million.
These price differences are not unusual.
According to a PropTrack analysis, home buyers can typically save around $365,000 by buying in the more affordable areas of a suburb.
In some neighbourhoods though the price gap becomes more of a chasm.
In the Perth suburb of Subiaco, for instance, several pockets of homes have median values topping $2 million.
Head just around the corner to Subiaco Oval and the surrounding homes are priced closer to $840,000.
What to watch with bargain buys
By this stage you’ve probably noticed a trend.
Nearby features can have a real impact – good and bad – on surrounding property values.
Access to the beach, great views or a local park can push property values higher.
On the other hand, homes bordering a 6-lane highway or nearby industrial estate can offer bargain buying – as long as you’re prepared to live with whatever is keeping the price lower.
And then there may be not-so-obvious factors – such as flood zones or upcoming changes to council zoning – so it’s worth doing your research.
After all, there’s a lot you can do to renovate a home, but you can’t change the location.
Seizing opportunities
That said, pricing differences within suburbs can offer opportunities to save.
A single street can be all that separates an expensive home from its more affordable neighbour.
Buying in the cheaper neighbourhood lets you enjoy all the amenities of the more expensive postcode, without the higher price tag.
It’s also worth keeping tabs on any planned local developments that could have the potential to transform today’s ugly duckling pocket into tomorrow’s upmarket enclave.
Thinking of buying? Call us today to understand your borrowing power – it’ll help let you know where you can afford to buy.
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