Story Featured in Real Estate section in Herald Sun.
People priced out of Melbourne’s inner north are embracing the bigger blocks and community vibe on offer at Preston.
Home to about 30,000 people, the suburb in the City of Darebin is 9km from the CBD and growing in popularity according to Ray White Preston agent, Chris Vlahos. CoreLogic figures show Preston’s median house price grew 8.3 per cent to $850,000 in the 12 months to November 2016. Units in the suburb were steady, growing 1.1 per cent to $455,000 in the same period.
Mr Vlahos said Preston has experienced good growth on the back of Northcote and the desirability of the northern corridor. He said results varied around the suburb but he believed the growth was in the 8 to 12 per cent range, with the median house now in the $900,000’s. “Preston is becoming more desirable,” Mr Vlahos said. “People are finding more value for money in Preston. I think (values) will only increase further.”
Mr Vlahos said people could pick up a partly renovated home on about 400sqm for $850,000 in some parts of the suburb. “Anything completely renovated is selling for $1million-plus,” he said. “Units around the $455,000 range are modern two-bedrooms with a car space or lockup garage.”
Mr Vlahos said he had noticed a shift in Preston’s demographics as prices grew in suburb’s closer to the city, with more “hipsters moving beyond Northcote.”
“They are young families or young professionals and generally second home buyers looking to get into bigger properties,” Mr Vlahos said.
In the past five years, Preston’s median house price has grown 42.1 per cent up from $598,000 according to CoreLogic. The median unit price has increased 5.3 per cent. The data shows investors could expect a rental yeild of 2.7 per cent on houses and 4.1 per cent on units. The median asking rent was $435 for houses and $360 for units in the 12 months to November 2016, the data shows.