Why you should consider buying your first property in Melbourne

As property prices continue to skyrocket, you might be thinking it’s a difficult time to buy. But not every Melbourne market is being impacted equally.

Vibrant inner-city suburbs are lifestyle playgrounds not to be ignored and while international borders are constrained, there are plenty of affordable apartment options.

To top it off, the State Government is offering more incentives for Victorians to buy in some of these central postcodes.

Here’s why now is a great time to get into inner city real estate.

City living is back

The buzz of the CBD always has appeal, but as Melbourne emerges from lockdown, there’s no doubt it’ll quickly regain its status as the centre of the city’s activity.

Acclaimed restaurants such as Chin Chin and Supernormal are reopening their doors with new menus and renovated dining rooms. New contenders are also on the scene, such as Society, the long-awaited venture by Chris Lucas.

Whether it’s footy or fashion you’re into, there’s always something to do in Melbourne. Picture: City of Melbourne

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Residents will again be able to explore the city’s laneways, trying out cocktail bars, trendy cafes, finding independent shopping boutiques and, of course, hitting Bourke Street Mall, Melbourne Central or Emporium for the latest in fashion.

On weekends you can swing by Queen Victoria Market for fresh produce, do some laps at the City Baths, picnic in the Royal Botanic Gardens, visit a gallery, or head to an AFL game — there’s always something to do.

It’s a buyer’s market

Property across Melbourne defied pandemic expectations. Homes have been snapped up faster than ever before at record prices.

But COVID-19 and the resulting Australian border closures have inversely affected the city, creating favourable conditions for first home buyers and people who want to live at the centre of the action.

“If you’re looking for an opportune time to potentially buy a property in inner Melbourne [suburbs include: Carlton, Docklands, East Melbourne, Kensington, North Melbourne, Parkville, Southbank, South Yarra – west, West Melbourne, Melbourne] now is a good opportunity because heading into 2023 we’re going to start seeing international students and migration trickle back,” Anne Flaherty, REA Group economist, says.

Inner-city areas have largely avoided an explosion in property prices, so it’s also an affordable option for first home buyers who are struggling to break into the market, she adds.

In September, realestate.com.au data shows the median apartment price was $518,000 in Melbourne, $570,000 in Southbank, and $597,500 in Docklands.

With less competition from international buyers, now could be a good time to purchase in the Melbourne CBD. Picture: realestate.com.au/buy

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Financial benefits

Another factor making right now a great time to buy are the unprecedented stamp duty savings on Melbourne’s inner-city properties.

The Victorian Government is offering a 50% stamp duty exemption on all new residential properties valued at up to $1 million within the City of Melbourne, as long as the contract is signed before 30 June 2023. On new apartments that cost less than $1 million and have been on the market for longer than 12 months, that discount increases to 100%. This is on top of other financial incentives such as the First Home Owners Grant.

To find out more, visit This is Your Local.