Vivek and Neha Jain have their weekends dedicated to house inspections for over two months now. Having moved to Australia over a year ago with their daughter, they are looking for their first home in Melbourne.
But, they realise it’s not easy to lock a deal for someone with just enough money.
“The houses that we think fit our choices and budget, someone with deeper pockets comes in and throws a higher offer,” says Neha.
And they are not even going to open auctions.
“I can’t understand the range pricing,” says Vivek who finds himself edged out of the market.
“Rather than quote a fixed price for a property, the seller advertises, for example, $450,000-490,000 which makes first home buyers such as myself very uncomfortable. While I think I will be able to buy this house for $450,000, there's always someone ready to pay higher,” he adds.
It’s believed the limited housing supply is fuelling the property prices in Melbourne which along with those in Sydney are the fastest growing in Australia.
But the Victoria Government has unveiled a plan which it says will make housing more affordable in Melbourne.
The government has announced 17 new suburbs to make available 100,000 lots in the next two years.
They new suburbs are:
- West of Melbourne: Quandong, Tarneit Plains, Kororoit, Mt Atkinson, Plumpton
- North-west of Melbourne: Lancefield Rd Sunbury, Sunbury South
- North of Melbourne: Lindum Vale, Beveridge North West, Beveridge Central, Donnybrook and Woodstock, Wollert, Northern Quarries
- South-east of Melbourne: Minta Farm, Pakenham East, McPherson
Victorian Government has announced to build 17 new suburbs around Melbourne. Source: Victorian Planning Authority
The planning of these new suburbs will include the services, infrastructure and amenities.
“By increasing supply of lots with good access to the jobs, schools, hospitals and public transport all Victorians need, we’re helping make housing more affordable,” said Treasurer Tim Pallas.
The new suburbs will be in Melbourne’s west, north-west and south-east.
The government says it’s slashing time to make land ready for development and extending its Streamlining for Growth program to help councils streamline subdivision of land and expedite applications for residential and employment land.
The government says the land prices in Melbourne are around half that in Sydney, and that these measures will help Melbourne retain the competitive edge.
“This is all about ensuring there is plenty of new housing coming to market to suit the varied needs of Victorian families, stay ahead of population growth and make new homes as affordable as possible,” said Minister for Planning Richar Wynne.
The government will also start a pilot program to deliver 100 new social housing dwellings on government land as part of developments in established suburbs.
This pilot is part of a program so private developers can innovate to provide inclusionary housing in new developments.
While the government is projecting a 3-bedroom house and land package for under $400,000, Neha and Vivek are hoping this announcement helps them get this foot in the property door with an established home.
