Why Frankston, Tarneit and Craigieburn are hot picks for Melbourne's young property buyers
Millennials and Gen Z might have a tougher road to property ownership than their parents, but experts say there are still ways to trade up to even some of Melbourne's wealthiest areas.
You just need to know where to look.
In Craigieburn, the 2025 median house price sits at $610,000 — six times the nation's about $100,000 average annual wage.
In Tarneit, the typical house costs $645,000, with other other suburbs offering a more affordable starting point including Wyndham Vale, $607,000, Pakenham, $590,000, Werribee, $610,000, and Frankston, $715,000.
And with access to infrastructure, lifestyle amenities and growing populations, there's potential for those prices to grow.
Ray White Frankston agent George Devic said demand was strong in the Frankston area, particularly from younger buyers and investors.
'If you stay sub-$850,000, you're seeing a lot of first-home buyers and both local and interstate investors in the market,' Mr Devic said.
'Buyers are active, and we're seeing the whole suburb remain attractive, from entry-level homes to blue-chip pockets.'
PropTrack senior economist Eleanor Creagh added that while buyers entering the market today were unlikely to see the same exponential gains as their parents, real estate was still a powerful long-term investment.
'Getting into the market remains a crucial first step, and with the right purchase in the right location, there's certainly potential to build wealth over time,' Ms Creagh said.
'Even if the journey looks different, the principle of long-term equity growth still holds true.'
The concept relies on a relatively affordable investment gaining value over a long period of time. If a person can acquire multiple homes it could eventually allow them to sell the group of more affordable residences to fund a home in a much pricier neighbourhood.
M R Advocacy director and buyers' agent Madeleine Roberts said young Australians were finding new ways to build wealth, from rentvesting to buying in future lifestyle suburbs.
'I grew up in Rye, back then it was a sleepy beach town. Now it's a million-dollar suburb,' Ms Roberts said.
'It shows how much potential lies in lifestyle-driven areas that were once overlooked.'
The buyer's agent added that younger buyers were 'more investment-minded' than previous generations.
'They know the dream home isn't going to magically land in their lap,' she said.
'They're using property as a wealth-building tool, it's about being strategic from the start and understanding how to make the market work for them.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
SBS Australia
4 hours ago
- SBS Australia
The government's super changes for high earners, explained
The government's super changes for high earners, explained Published 6 June 2025, 8:24 am New research into the government's plans to increase the tax on high-income earners' superannuation has revealed it could eventually apply to half a million Australians. Labor is moving to pass its contentious plan for 30% taxes on earnings for multi-million dollar balances when parliament returns. SBS Chief political correspondent Anna Henderson explains.
News.com.au
7 hours ago
- News.com.au
Barry FitzGerald: Katanning ticks all the boxes for an Ausgold re-rate
'Garimpeiro' columnist Barry FitzGerald has covered the resources industry for 35 years. Now he's sharing the benefits of his experience with Stockhead readers. After its dramatic rise in the opening months of the year to record levels, the Aussie gold price has settled into a bit of a groove around the $5,200/oz level. Nothing wrong with that. It's a fantastic price and delivers fat margins to even our highest cost gold mines. And it is not to suggest that gold can't take off again and set new highs or fall significantly for that matter. The observation is that for the last six weeks or so the Aussie price has been as steady as it could be in these turbulent times. It means that share prices of ASX-listed gold producers and developers have also gone into a sideways trading pattern. Need to differentiate So more than has been the case in recent times when gold took off to record levels, the producers and developers now need to differentiate themselves from the pack with strong newsflow of the re-rating inducing type. It means that if the gold price continues to trade sideways, the stock involved has a reason to go higher. Alternatively, if the gold price heads south, the damage to the stock could be more limited than it would have been otherwise. Taking all that on board, Garimpeiro had a look at his calendar during the week to find which of the gold producers/developers have re-rating event(s) on the horizon. Ausgold stands out Ausgold (ASX:AUC) stood out for the pending release this month of a definitive feasibility study (DFS) into the development of its Katanning gold project, a three-hour drive from Perth in WA's southwest Yilgarn region. Katanning is one of the biggest undeveloped gold deposits in the country at 3.04 million ounces and has previously been scoped as having the potential to produce 136,000 ounces annually from open-cut ore sources for more than 10 years. All-in sustaining costs were put at $A1,549 and preproduction capital costs weighed in at just under $300m. But those are 2023 figures and things will have changed, including the reserve component of the resource thanks to infill drilling work. Gold prices have increased dramatically since those 2023 figures but so have construction costs. Having said that, the expectation is that the DFS will confirm Katanning as a very robust project with a super quick capex payback capability. Take that and the scale of the project – production in the early years will be higher still because initial higher grade ores - and Ausgold's $240 million market cap at 67c share looks to be on the mean side of things. The company has the lowest resource ounce valuation metric of its peer group for no apparent reason, except perhaps the project has been in the works since 2010 under Ausgold ownership. So the story of the resource growth since, and the pending release of the DFS leading into a development decision by year end, has been overlooked to a large degree by the market on a fatigue basis alone. Katanning momentum Momentum for Katanning is now the order of the day under John Dorward, Ausgold's executive chairman who arrived on the scene in May last year. A can-do sort of guy, Dorward was the former president and CEO of TSX-listed Roxgold, a West African gold group acquired by fellow Canadian Fortuna Silver Mines in an all-scrip deal worth $US884 million in 2021. Two weeks in the job at Ausgold and Dorward put Katanning on the development pathway by pulling in $38 million in equity, including $1m from his own pocket. That is being spent getting to the DFS stage and on a three-pronged strategy of establishing a bigger mining reserve component in the mineral resource estimate, extending the scale of the resource and making regional gold discoveries. Morgans' 94c target Morgans' veteran analyst Chris Brown has a 12-month price target on the stock of 94c. 'Our expectation is that delivery of a DFS broadly confirming or improving on the preliminary feasibility study, and employing a higher gold price, should prove positive for the share price,' Brown said. He also flagged that a final investment decision on a project development – expected by the end of the year - should also prove positive depending on the terms of the project's financing package. ''Our valuation will likely lift with the delivery of the DFS, and again when the final investment decision is taken,'' Brown said. The views, information, or opinions expressed in this article are solely those of the columnist and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.
News.com.au
8 hours ago
- News.com.au
‘Uncertain macro backdrop': ASX slips ahead of jobs figures
Cautious investors sold down the ASX on a quiet day of trading on Friday, despite the US and China resuming trade talks, as markets await critical jobs data out of the US. The benchmark ASX 200 index slipped for the second consecutive day of trading falling by 23.20 points or 0.27 per cent to 8,515.70. The ASX200 has now recorded four consecutive weekly gains. The broader All Ordinaries fell during Friday's trading, down 26.70 points or 0.30 power cent to 8,741.90. The Australian dollar also is down 0.21 per cent and is now buying 64.95 US cents. On an overall bleak day on the market, nine of the 11 sectors finished in the red with just energy, industrials and utilities gaining ground. Woodside Energy gained 0.97 per cent to $22.94, while Santos is up 0.61 per cent to $6.58 as the price of Brent crude oil continues to recover over the week's trading. Industrials also had a strong day led by Qantas Airways which jumped 3.46 per cent to $10.76 despite the news Virgin Australia is looking to re-list. Transurban shares also rose 0.63 per cent to $14.38, and Computershares Limited rose 0.83 per cent to $41.08. CBA shares slipped from its record highs down 0.79 per cent to $179.90, Westpac fell 0.24 per cent to $33.18 and ANZ traded 0.44 per cent lower to $29.50. NAB was the only big four bank to finish in the eking out a 0.18 per cent gain and to close Friday's trading at $38.58. eToro market analyst Josh Gilbert said initially there was optimism on the markets following 'very good' trade talks between Washington and Beijing. But this quickly changed after a public spat between former friends President Donald Trump and Tesla chief executive Elon Musk. 'This will provide a hit to overall market sentiment, particularly tech, but may not be long-lasting for anyone other than Tesla,' Mr Gilbert said. The overall lower volumes on the ASX comes as investors await the latest payroll data out of the US. 'The uncertain macro backdrop continues to provide a hurdle for risk-on sentiment, and cooling US economic data is leaving investors unassured,' Mr Gilbert said. 'With the labour market heavily in focus, the print this evening will be essential for market direction.' Mr Gilbert said negative economic data released throughout the week could actually help drive the ASX 200 higher. 'The weaker-than-expected GDP data this week also drives the expectation for further rate cuts, further supporting the market optimism,' he said. In corporate news, Worley shares fell 0.46 per cent to $13.08 despite the business announcing it had won a contract with Glenfarne to help support engineering work on its Alaska LNG pipeline. Shares in gold miner West Cobar Metals soared 60 per cent to $0.024 after announcing it has completed the acquisition of the Mystique Gold Project in Fraser Range, Western Australia.
