What it's like living in Melbourne's cheapest suburbs, where property starts at just $270,000
Anyone searching for an affordable property in Melbourne right now might laugh at the idea of buying an apartment for just $270,000.
But that is indeed the median apartment price in a little-known suburb just 15.5 kilometres west of the CBD.
Albion, nestled between Sunshine and Deer Park, is one of Melbourne’s best-kept real estate secrets.
On the cusp of gentrifying, this western suburb is where people catch up at European style cafes, families gather at playgrounds and working professionals either cycle to work or jump on the train to the city.
Gareth Crawford said Albion was the natural choice for his young family.
“Like a lot of people, we were renting in the Footscray, Seddon, Yarraville area for a long time and then obviously house prices jumped up there,” he said.
“This is the next sort of affordable option for us.”
The Crawfords bought a period weatherboard house which, like much of Albion’s housing stock, was originally built for returning World War I soldiers. In the nine years they’ve lived there, the family has extensively renovated and built a solid community around them.
“We love living in Albion; it works really well for us as a family,” Crawford said.
“We have our local cafe where we enjoy a coffee, and the park is a big plus when we’ve got the three and four-year-old and the dog.
“It’s a great place to bring up young children.”
Suzana Bundevski, who co-owns Mitko Deli and Cafe with her husband Mitko, has seen Albion flourish since they opened in 1992. The couple have lived in the area for much longer and say it’s rapidly becoming popular with a new generation.
“When we came out here 40 years ago it was very small, very quiet, elderly generation, but what is happening in the meantime is the families of those generations who lived in the area have come back and created themselves a home within Albion,” Bundevski said.
“There is a great future for Albion. What we have seen in the time we have been running our business is this area has now become very popular with the younger generation, with the young families and young children.
“Community-wise it’s excellent, and we can see the younger families are settling in much more because of all the facilities available.”
Albion is 18 kilometres from Melbourne Airport and seven train stations from the city loop. The M80 Ring Road on-ramp is in neighbouring Sunshine and is mid-way through major works that will see it connected to the North East Link tunnels and the Eastern Freeway.
Census data from 2021 reveals that the biggest age group in Albion is 25 to 39-year-olds, who make up 28.8 per cent of the population. The vast majority – 66.9 per cent – of residents were born in Australia, 4.1 per cent hark from England and 3.7 per cent come from New Zealand.
There’s also a sizeable Polish community in Albion, which is home to the Polish Club on Carrington Drive.
Selwyn Park is a big hit with families, not just because of its range of playground equipment, but for the fact it brings people together around barbecues and sheltered picnic tables. The park also connects to the Kororoit Creek walking and cycling trail – a 10 kilometre path from Albion through to Sunshine West.
Ray White Sunshine director Marcus Fregonese said the area’s affordability wasn’t its only drawcard.
“I’ve been selling property in Albion for over seven years now,” he said. “Albion’s a suburb that’s gentrifying very quickly.
“We notice the demographic of buyer coming through here now from the inner west and inner north, young families, a lot of prams, so people are starting to realise the value that it offers.
“Its proximity to the CBD. We’ve got the train station – six or seven stops and you’re in the heart of Melbourne. It’s got a lot going for it.”
While the bulk of buyers are young families, Albion’s older apartments are also attracting investors.
“The demographic of buyer at the moment is your family homes, young couples with one kid, potentially two, coming in from the inner-west to inner-north looking for some value for money, larger allotments of land,” Fregonese said. “[There are] some beautiful period homes throughout the area.
“There’s a real eclectic mix of properties. You’ve got your townhouses, you’ve got your brick homes and then you’ve got your beautiful weatherboard Californian Bungalows.
“And then, of course, on the other [end of the] scale you’ve got your investment grade apartments, a lot of apartments built in the ’70s and ’80s that offer really good investments.”
Apartments are also surprisingly affordable in a more prominent city-side position well known for its hip cafes. Carlton – less than three kilometres from the heart of Melbourne’s CBD – is home to a range of apartments, including some that used to be student accommodation.
The median price of apartments in Carlton is $345,000, according to the latest Domain House Price Report, which is second only to Albion.
Nelson Alexander Carlton North and Fitzroy partner Peter Varellas said Carlton had a huge diversity in property, from renovated Victorian terraces through to modest apartments.
“Carlton is great and affordable for young people to buy into and have the luxury and convenience of living in a wonderful suburb, and then you’ve got prestigious homes in the suburb as well,” he said.
“Just as an example I sold a three bedroom apartment in Carlton Street about a month ago – fantastic location right opposite the Carlton gardens. We had a reserve price of $1.15 million and it sold for just over $1.3 million.
“To buy yourself an apartment for $345,000 in Carlton, you’re looking at ex-student accommodation apartment that’s maybe 50 square metres in size, that doesn’t have parking.
“An example is apartments that sell in the development at 550-590 Lygon Street, which used to be College Square when it was first built in 1988. That was originally built by Becton as a student accommodation building.
“The restriction of that has been lifted, so anyone can purchase and live in that apartment building.”
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