Suburbs across Melbourne’s leafy east have been earmarked as the city’s best bet for first-home buyers open to an apartment.
Melbourne first-home buyers have been given a hit list of the best places for them to make a move as the city’s auction market fires up again after the election.
They’ve also been warned that waiting for rate cuts and election promises to come through could wind up costing them in the longer term, as experts tip them to lead a late autumn and early winter charge for some of the city’s most affordable addresses.
PropTrack figures show there are 836 homes slated for auction across Melbourne this weekend.
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Wakelin Property Advisory director Jarrod McCabe said with 242 of these being units, now was the time for first-home buyers to lock in one of the city’s older-style apartments in eastern and southeastern suburbs ranging from Elwood to Hawthorn.
Mr McCabe said with economists predicting a series of interest rate cuts in the months ahead and last week’s ALP election win confirmed an expansion to the federal government’s First Home Guarantee scheme, expected to give an unlimited number of market entrants access to the government as a guarantor from early next year, making a move sooner could pay off.
“They will be better off now than they will be by the end of the year,” Mr McCabe said.
The buyer’s advocate added that with most of the recent federal election promises around housing aimed at supporting buyers, rather than boosting supply, buyer demand would push prices up this year and into 2026.
A one-bedroom apartment at 6/25 Isabella Grove, Hawthorn, sold last month for $670,000 gives an idea of the home first-home buyers are advised to pursue.
Real Estate Institute of Victoria president Jacob Caine said it was expected that forward-thinking would-be homebuyers would be making a move as quickly as this weekend, after last weekend’s election result confirmed what policies would shape the market in the year ahead.
“I think we could definitely see those savvier first-home buyers drive things as they seek a first-mover advantage,” Mr Caine said.
“And it’s not going to be getting cheaper for them to buy a home.”
Mr McCabe said while other parts of Melbourne had older-style apartments available, those built in the city’s east and south east had largely been created at a time when apartments were needed as an affordable alternative to houses — meaning they were larger and better thought out.
He advised that Hawthorn, St Kilda, Elwood, South Yarra and Armadale would provide some of the best opportunities.
Features such as courtyards can make older apartment buildings a better option for first-home buyers to make their start in the market.
Buyers should expect to pay one-bedroom prices from $450,000-$650,000 for the homes that fit the bill, while worthy two-bedroom residences would mostly be starting from $650,000.
“And those still fit within the current First Home Guarantee scheme,” Mr McCabe said.
A one-bedroom apartment at 6/25 Isabella Grove, Hawthorn, sold for $670,000 early in April had been a perfect example of what buyers should seek out, he added.
The 52sq m home was located in a popular part of the suburb, but came with its own courtyard and a bedroom big enough to host its own study nook.
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