Strong growth in oz's affordable areas

Five of the 10 fastest-growing local Government areas in Melbourne, Australia over the past six years have been affordable ones...

Analysis of the median price of a house based on the municipality in which it is located has shown significant growth in Boroondara and Stonnington, but has also shown the impact of the population increases as prices are driven up in affordable areas.

Melbourne has recorded strong increases in population over the past few years, and when it comes to detached houses, this growth has been primarily in the outer, more affordable suburbs.

In contrast, prices in more established areas such as Boroondara, Stonnington and Glen Eira are primarily driven by the scarcity of new supply as buyers compete for existing dwellings.

The most popular of the affordable municipalities, the City of Greater Dandenong, has seen its median house price almost double with 82 per cent growth from £90,000 in 2002 to £163,400 last year.

The City of Wyndham, one of the most popular locations for first-home buyers, had a median of £153,800 in 2008 and recorded an increase of 72 per cent since 2002, when the median house price was £89,200.

Two other council's on Melbourne's fringe, Frankston and Cardinia, have also seen the demand drive price increases.

Frankston's median was £158,500 last year and has increased by 66 per cent, similar to Cardinia, whose median is £158,500 with an increase of 65 per cent since 2002.

Source: www.theage.com.au