Melbourne's Croydon attractive to first home buyers: HTW

HTW expects there to be steady activity and growth within Melbourne’s outer eastern suburbs, however, it is possible that uncertainty in the market caused by international political decisions may result in activity being marginally subdued in comparison to 2016, according to its February 2017 update.

The valuation firm says that it expects that downsizers will continue to cash in on larger blocks as the supply of development sites reduces, particularly in areas such as Croydon, Mooroolbark and Kilsyth.

“Ringwood North is perhaps another suburb worth watching due to its proximity to Eastlink and Eastland shopping centre, as well as access to good schools,” the reports says.

“The suburb continues to increase in popularity among up-sizers and families.

“Larger blocks with subdivisional potential in the outer eastern suburbs tend to be considerably more affordable than blocks on the outskirts of the middle eastern suburbs such as Ringwood East.

“Additionally homes located in the far outer eastern suburbs such as Coldstream still represent good value, especially for those not required to be close to transport links or the rail network.”

HTW says Croydon South is also a suburb that tends to be relatively affordable and is therefore also a suburb that is likely to experience higher than average growth this year as first home buyers rush to take advantage of the record low interest rates.

Apartments in suburbs such as Croydon and Mooroolbark tend to be relatively affordable but buyers should be cautious about the quality of finish on many of these newly constructed buildings, the report states.

“However, it could be argued that the majority of these apartments are built for the investor market and therefore affordability would tend to be the overriding factor rather than quality.

“We believe that the resale value of these apartments may be adversely impacted in the future as a result of the below standard quality of fittings and fixtures.”

At the average price of $671,000 an investor can purchase a house such as the one at 2 Nuraylia Avenue, Croydon (above) that is currently available for between $670,000 to $737,000.

Similarly at the average price of $490,000 an investor can purchase a unit such as the one at 4/32 Dorset Road, Croydon (below) that is available for $499,000.