Mums and dads looking to build a home in Victoria are increasingly targeting the “sweet spot” between location and affordability, according to new research.
According to OpenLot.com.au, Fraser Rise, located 24 km north-west of Melbourne’s CBD within the City of Melton, was the number one ranked area for people building homes in Victoria.
The suburb recorded 791 building approvals in 2023 while there was also an 8.12 per cent increase in build size compared to the prior year.
Truganina was second with 755 building approvals and a 5.5 per cent increase in build size, followed by Tarneit, with 1455 building approvals and a 4.78 per cent increase in median building size.
Other popular locations for new builds were Berwick, Greenvale and Officer.
Of the top 20 areas to build a new home, Clyde North recorded the most building approvals last year at 1339, while Aintree recorded the biggest increase in median increase build size, with a 20 per cent jump.
Of the top 20 locations, 17 are in the outer suburbs of Melbourne (from 20km to 50km of the CBD), while three are outside Geelong.
For the homes built during 2023, the median size ranged from 269sq m in some suburbs to 398.5sq m in others, while the median building cost ranged from $272,944 to $387,688.
OpenLot.com.au founder Qi Chen said the most popular locations struck a balance between cost of entry and quality of life.
“Building a home in Victoria involves trade-offs – it costs too much for the average family if you build too close to the Melbourne or Geelong CBDs, while, for many families, you sacrifice liveability if you build too far away from the city centre,” Mr Chen said.
“What we discovered through our research was that the ‘wisdom of the crowd’ has identified locations in the sweet spot of affordability and liveability.
“Families on average incomes can realistically aspire to buy land and build quality homes in these suburbs, and because they’re in developed areas with plenty of amenity, they’re good places to live and raise children.”
Mr Chen also said a rare alignment of economic metrics meant that now was a good time to buy land and build a home for many families.
“Victorian land prices are increasing, but slowly, which means buyers don’t have to rush their due diligence.
“The growth in building costs has now moderated, after rising sharply during the pandemic.
“Unemployment remains low, so most people can qualify for a mortgage.”
He said economists believed interest rates had peaked, which meant consumers could have confidence that borrowing costs were unlikely to increase in the foreseeable future.
“Of course, everyone has unique circumstances, so the current market won’t suit everyone,” he said.
“But, for many families, this could be the best time to be a buyer or builder for the foreseeable future.”
