Suburb spotlight: Melton council gearing up for growth

Suburb spotlight: Melton council gearing up for growth

Jennifer DukeApril 9, 2014

Some 35 kilometres west of Melbourne CBD, the City of Melton is a flat plain with a farming history, that seems to be finally making a bit of a mark.

Melton and Melton South are fast growing, well-serviced areas, but ones that may not be seeing any real capital growth for some time. This means good things for home buyers looking to get in over the medium-term, and yet it also doesn't appear investors are being put off by the hefty amounts of supply coming onto the pipeline or up for sale at present.

Part of the restraint on property prices is the steady release of land occurring around the area. Just over the past weekend, a Lend Lease display home launch attracted the attention of Property Observer, promising residence for up to 4,000 people. Atherstone, the Lend Lease development, is just one in a stream of new house and land developments for the area that look to bring in families and quality new homes.

The vacancy rate in the area currently sits at a fairly tight 2.2%, however there are a number up for rent at present.

With another house and land creation, from developer 608 Property, called Waterford just a five minute drive further on down the road, and still many blocks unsold in the somewhat more built up but new offerings around the Exford Road end of Bridge Road itself, it remains unclear how long it will take for this supply to be absorbed. Toolern Waters is also a short drive away, a 960 lot masterplanned development.

The vacancy rate in the area currently sits at a fairly tight 2.2%, however there are a number up for rent within the suburb and there appears to be little competition for some of the larger blocks - with demand dropping off the further away from Melton Station you get, which is actually located in Melton South's upper end. This is largely a house-dominated area, with few units to speak of around the Melton and Melton South suburbs.

KEY STATS ABOUT THE CITY OF MELTON

6,800 businesses registered
16,139 jobs

COUNCIL PLANS FOR 2030

67,675 additional dwellings.
185,170 additional residents.
New activity centres in Plumpton, Rockbank, Rockbank North and Hopkins Road, and a new Metropolitan Activity Centre in Toolern.
Growth in manufacturing industry.

Source: City of Melton Council

Melton South and Melton are structured around two main roads - Exford Road, which turns into Station Road and cuts through the middle of Melton South, and High Street, the main shopping strip for the area that is also home to a number of different real estate agencies. In addition to the High Street shops is Woodgrove Shopping Centre, that underwent the beginning of an $88 million expansion project in 2012 to more than double the centre by the end of 2013, which is complemented by the nearby and newly built Melton Library and Learning Hub that completed in June last year. It's worth noting that both of these relatively new pieces of infrastructure are usually busy with residents, and spoken of with some pride.

The Melton Council also has their "growth" hat on, encouraging the creation of new suburbs and the strength of the area.

This reflects the plan for the area, which saw a 2004 population recorded at 71,350 and a current 2020 population projection from the Department of Sustainability and Environment of 130,919. It appears this may be easily surpassed, with the City of Melton council estimating a total population of 125,409 as of 31 December 2013, with their estimates looking at "more than 241,000 by 2031", which would make the area the size of the Sunshine Coast. The Council also has their "growth" hat on, encouraging the creation of new suburbs and the strength of the area in their recent Economic Development and Tourism Plan 2014 to 2030.

Melton South is socioeconomically the most disadvantaged area within the City of Melton. However, compared to Greater Melbourne, the City of Melton is middling when looking at socioeconomic disadvantage. Police presence is, however, still heavy around Melton train station and it appears that it does have something of a stigma to shake off with signs noting it is a high crime location.

Within Melton South itself there is a smaller shopping plaza near the station, with a discount store, bakery, liquor shop, fruit and vegetable store, restaurant, Woolworths and other necessary outlets. There are also a number of take out shops, a fabric store, a tattoo parlour and a video store on the opposite side of the station. The City of Melton is noted to have one of the highest worker/local job ratios across the metropolitan growth areas, evidenced by the large number of signs up for local home-based businesses, yet despite this the 7am work day train to Southern Cross is continually full.

PROPERTIES OF NOTE

If you're a heritage property enthusiast, then it's worth an amble through the neighbourhood and down Exford Road, to where the notable Glenloth at 54 Exford Road - a council owned Edwardian-style beauty that is fairly unkempt - is located. Originally on a large rural land holding, called Exford, it is now in the suburban context on a reduced block, and is noted as having local significance.

More expensive properties, while seeing less rental interest, can achieve around $300 to $350 per week return.

The Shire of Melton Heritage Study - Volume 4 notes that it "expresses one of the major themes of Australia's history - the contest between large pastoralists and small farmers for the land - and the abiding power of the yeomanry well into the twentieth century.

"The break up of the massive pastoral estates at the beginning of the twentieth century market a major new era in the history of Melton. The Shire was transformed by the Closer Settlement and Soldier Settlement Acts, as the emergence of new communities necessitated new roads and bridges and new primary schools."

Now there are a number of schools, churches, parks and even a university campus within the local area.

Buses run through, however it's poorly connected for anyone who doesn't work nine to five, prompting a busy taxi service to currently service the area. Similarly, the train takes 35 minutes on express to Southern Cross, however isn't a hugely frequent service during morning peak hour. This may be shaken up under plans long-discussed for the area, with potential additions at Deer Park West, Caroline Springs and Toolern, and might challenge some of the city dwellers' perspectives that Melton is "far away".

Despite remaining a fairly quiet area, the community remains shaken by a house fire and subsequent death of teenager Daniel Sheehy back in 2012, and occasional acts of vandalism around the time of the anniversary take place. While this comes as a surprise to some, locals confirmed that this has happened for the past few years and it is common to see graffiti on fences.

SUBURB STATISTICS - MELTON HOUSES
MEDIAN PRICE: $245,000
MEDIAN ASKING RENT: $250 PER WEEK
INDICATIVE RENTAL YIELD: 5.31%
AVE. TIME ON MARKET: 88 DAYS

With all of this occurring, it's unsurprising that Melton has already secured itself a place on many a person's "to watch" list. In 2012, it scored in the Top 10 for the Real Estate Institute of Victoria's capital growth suburbs for the year, meanwhile in August last year PRDnationwide forecasted strong growth for the area over the next 25 years. The end of 2012 saw Hockingstuart providing some good news about the Melton area as well, with the market picking up in the top end. Melton's "top end" sits around the $400,000 mark, with the more common investment purchases being from $200,000 to $250,000 with rent from $250 to $285 a week. More expensive properties, while seeing less rental interest, can achieve around $300 to $350 per week return.

In fact, Melton has topped "cheapie" lists on Property Observer for some time, and is unsurprisingly attractive to first home buyers for this reason, and for investors - with the market picking up and recent sales to investors in Melton South being noted by local real estate agents.

Listings websites are currently flooded with either cheap and new (or cheap new) properties, including many in the low-$300,000 bracket, as well as the occasional multi-million dollar rural listing.

For instance, 141 Barkers Lane, Melton (pictured below) is listed for $249,699 (which includes a $10,000 FHOG, the advertisement reveals).

The three-bedroom, two-bathroom new offering includes two garage spaces, colour bond fencing and a modest 250 square metre block, from Sherridon Homes. It's centrally located.

Meanwhile, 2 Scott Street, Melton (pictured below) is listed for $249,000 over 717 square metres, with a suggested possibility for subdivision.

The four-bedrooms, one-bathroom, two-car port home also has a 6X7 metre shed and ducted cooling and all bedrooms come with built in wardrobes. It appears the house could do with some updating, but is in fairly good condition.