Recent data confirms Melbourne is now the go-to capital city for first-home buyers. A PropTrack/CBA report found first-timers are flocking to Melbourne at twice the national rate. In fact, four of Australia’s five hottest first-home suburbs (Maroondah, Brimbank, Casey North and Knox) are in Melbourne. Nearly half of the nation’s top 20 entry-level hotspots are in outer Melbourne. Victoria also led all states with 38,472 new first-home loans last year – more than a third of the national total.
- Outer-suburb hotspots: Maroondah, Brimbank, Casey (north) and Knox top the list for first-home buyers.
- Price advantage: The median Melbourne home now costs less than comparable houses in Adelaide, Brisbane or Perth. Even detached houses in Melbourne are cheaper than those in Brisbane.
- Government schemes: Many Melbourne homes fall under the $950k Home Guarantee cap, so buyers can use a 5% deposit and avoid LMI. More generous scheme caps mean a higher share of Melbourne properties are eligible.
- Buying options: First-timers can tap grants, low-deposit loans and creative strategies. The report notes savvy buyers are using extra tools from government grants and 5% home guarantees, to “rentvesting” or targeting new builds, to meet the deposit hurdle.
These factors give Melbourne an affordability edge. Despite rising prices elsewhere, Melbourne’s growth of new housing (especially in the outer suburbs) has kept values more moderate. For example, the Dandenong area (an outer-Melbourne region) has a median house price around $730,000 – much lower than many inner-city markets. This means buyers can often find family homes within Home Guarantee limits, making it easier to enter the market with just 5% down.
Why Expert Guidance Matters in Today’s Market
As an experienced buyer’s agent, Key2Dreamz shows you these chances. We help you create a strong offer and secure funding even before you begin house hunting. This includes getting pre-approved for a home loan, checking your eligibility for grants, and exploring the Home Guarantee program. We then use our knowledge of the local market to find the best deals in Melbourne’s growing suburbs. Our team looks at suburbs that offer both affordable prices and the potential for growth, and we negotiate for you in a smart way.
Key services include:
- Organising lender pre-approval and finding loan structures that work for your 5% deposit goal.
- Investigating emerging Melbourne neighbourhoods where housing prices are affordable, and availability is on the rise.
- Managing government benefits and making sure you meet the necessary conditions to qualify for the program.
- Handling inspections and negotiations so you get the best price.
Acting early is crucial. Economists forecast national home values may rise by ~6% in 2025, and affordable areas will likely see the fastest gains. CBA warns first-home buyers have a limited window (roughly a year) before price rises erode the benefit of current rates. In other words, locking in a suitable property and finance now can save thousands later.Ready to get started? Contact Key2Dreamz at +61 439 260 917 or book a free consultation to begin your Melbourne home search. We’ll help you turn this opportunity into your new address.