WANT to buy a house in one of Melbourne’s priciest suburbs, but don’t have $1 million-plus to spend?
No problem.
Figures from the Real Estate Institute of Victoria ­reveal that there can be more than $800,000 difference between the price of a suburb’s typical house and one of its more affordable ones.
A median-priced two-bedroom house in Kew across the 12 months to June cost $898,500. Sounds expensive, but it is almost half the suburb’s wider median price of $1.75 million.
In the northeastern suburb of Ivanhoe, the median house price is $1.22 million.
But half of those wanting to buy a two-bedroom house in the suburb did so for less than $792,250, according to the REIV figures.
Buying a smaller property may reap a bigger reward in price growth.
The figures also showed that two-bedroom house prices in many ritzier suburbs appear to be outpacing those of larger houses.
The median price for two-bedroom houses in Ivanhoe rose 5.4 per cent over the past five years, while that of three-bedroom homes gained just 3.1 per cent.
Enzo Raimondo, REIV chief executive, said it proved you did not need a million-dollar budget to buy into a champagne suburb.
“If you aspire to live in a five-star suburb, this is the way to do it,” Mr Raimondo said.
“It’s a smaller house with more capital growth at a cheaper price ... and it’s a chance for buyers to get a foot in the door of a champagne suburb of ­Melbourne.”
In May a two-bedroom house in Merton St, Ivanhoe, sold for $598,000 — about the Melbourne-wide median house price.
Brad Pearce, who sold the property, said those priced under $800,000 in the suburb were smaller, but very popular with first-home buyers and downsizers whenever they came on to the market.
“When they do come around they are certainly well sought after,” Mr Pearce said.
While smaller, the houses — generally duplexes or semi-detached — typically come with a front and back garden and there were no owners’ corporation fees to pay on top, ­according to Mr Pearce.