Cheap buys, you beauty - Sun Herald by Natalie Tkaczuk Sikora
Dandenong, Epping, Frankston and Melton may be regarded as cheap "Ugly Duckling" locations, but experts are convinced they are Victoria's real estate hotspots and tipped to become swans.
Real estate analysts reckon that if you can overlook the stigma associated with these undervalued suburbs, snapping up a property could be one of the best decisions you make.
The not-so-awesome Victorian foursome have just been named in the National Top 12 Ugly Duckling Hotspots by hotspotting.com.au.
National property researcher Terry Ryder said Ugly Duckling suburbs offered the best growth prospects in the current property market.
"The Ugly Duckling of the fairytale was considered unappealing because those around it didn't understand what it was before it evolved into a graceful swan," Mr Ryder said.
"Likewise, there are property locations with similar qualities.
"They are considered unattractive by those looking through uneducated eyes, but they also have the potential to transform into something completely different and highly appealing."
With ongoing interest rate reductions and big increases in the First-Home Owners Grant, buyers need to focus even more intensely on the cheaper areas of our major cities as they will deliver the best future price growth.
Almost all of the top suburbs have typical property prices below or about $300,000.
Dandenong's $1 billion rail upgrade, EastLink tollway, $250 million Metro Village and its Transit Cities program are the key qualities earning the suburb its place in the Top 12.
Epping and Frankston, which have median house prices of $290,000, also out-ranked neighbouring suburbs.
Epping's $500 million Craigieburn bypass and $600 million Plenty Valley Town Centre made this suburb a good investment.
Frankston's foreshore development, 300-berth marina, its CBD project and the $700 million Frankston bypass earned its place as an up-and-coming hotspot.
Melton also made the grade with its $15 billion Melton growth plan, $330 million Deer Park bypass, Western Freeway upgrade and strong population growth.
Typical prices of $190,000 to $230,000 also made it one of the most affordable booming suburbs.
Mr Ryder said the trick for successful investors was to identify locations that had "big kickers" to outperform the market in coming years.
These include major projects and government initiatives that generate economic activity, jobs, improved lifestyle and community appeal and, most importantly, convenient transport links.
"Public transport, especially train connections to cities, is now arguably the biggest driver of price growth in Australian real estate, and plays an important role in the future prospects of all Ugly Ducklings," he said.
Examples of transformed Ugly Ducklings throughout Australian cities include Richmond in Melbourne, Balmain in Sydney and Bulimba in Brisbane, which have evolved into trendy, highly sought-after residential locations.
"For property buyers, the challenge is to get into these areas before they are discovered and prices take off," he said.
