December 16, 2014

By Lexi Cottee

Epping and Craigieburn have been named among the top 10 Victorian property hotspots, according to a real estate analyst.

According to property market analyst Terry Ryder, of hotspotting.com.au, Melbourne’s strong market is spreading to the middle-ring and outer-ring suburbs.

He cites suburbs in the Whittlesea municipality as markets on the rise due to the area’s affordability, transport links and access to major job nodes, including the Northern Hospital, Coles Myer’s key distribution centre in Somerton and the soon-to-be completed Melbourne Market.

“Ten years ago this was an immature residential area, but it’s moved along a lot,” Mr Ryder told Star Weekly.

“Infrastructure is so important and this precinct really has that. “It’s the big indicator of price growth in a residential market.” Mr Ryder said the Epping and Craigieburn region had plenty of good reasons to move forward and be worthy of investors’ consideration.

He cited the Western Ring Road upgrade, expansion of commuter train services, the relocation of the Melbourne wholesale fruit and vegetable market, job generators such as Austrak intermodal terminal at Somerton and major housing developments as drivers of strong rising sales volumes.

According to hotspotting.com.au research, Epping, Craigieburn and surrounding suburbs recorded a six-to-seven per cent growth in median residential prices in the 12 months to December 2014.

“Recent increases in sales activity suggest further growth will occur,” Mr Ryder said. He described the suburbs as “the stayers”of Melbourne real estate, with a solid but unspectacular residential property market and price growth virtually every year since 2000.

Data from SQM Research shows vacancy rates are at acceptable levels for investors. The percentage of rental properties vacantin Mill Park and Lalor is 1.6 per cent; it’s 1.5 per cent in Thomastown and 2.6 per cent in Epping. Australian Property Monitorsdata shows houses are affordable in the area, with median house prices mostly in the high$300,000s and low $400,000s, and units in the high $200,000s and low $300,000s.

Craigieburn is the highest-volume market and also the most affordable. Mr Ryder said these suburbs had been on his radar for several years. “We’re now recommending this area for the long-term,” he said.

“Infrastructure is so important and this precinct really has that” -Terry Ryder