Late last week, real estate agent Steven Shaw from Nelson Alexander in Coburg attended the opening of a new retail and hospitality precinct at the site of the former Pentridge Prison.
He says if Coburg hasn’t already shrugged its “bridesmaid” suburb tag, then the transformation of one of Melbourne’s most notorious prisons into an urban village, complete with a public piazza, restaurants, shopping centre, and a 15-screen Palace Cinema, should do it.
“I think Coburg has definitely lived in the shadows of Brunswick for a long time, and before that it did have a bit of a stigma attached to it because of the prison [which closed in 1997],” Mr Shaw said.
35 Rennie Street, Coburg VIC 3058
“But I think with new infrastructure, such as the village at Pentridge, and the new sky rail, it’s probably starting to attract buyers in its own right.”
In recent years, Coburg has made a regular appearance on the list of Melbourne’s so-called bridesmaid suburbs – those suburbs that home buyers tend to look to when they are getting priced out of the neighbouring “bride” or go-to suburb.
In fact, Mr Shaw, along with buyers’ advocate Wendy Chamberlain, say nearby suburbs such as Coburg North, Pascoe Vale and Pascoe Vale South are now emerging as the new bridesmaids of the inner north.
Bride suburb: Brunswick
Median house price: $1.09 million
Previous bridesmaid suburb:
Coburg: $1.025 million
New bridesmaid suburbs:
Pascoe Vale: $805,000
Pascoe Vale South: $955,000
Why not consider:
Fawkner: $690,000
Nestled between Coburg to the east and Strathmore to the west, Pascoe Vale and Pascoe Vale South are benefitting from a double ripple effect, whereby home buyers getting priced out of the more expensive suburbs on both sides are looking here instead.
“A lot of properties within Pascoe Vale and Pascoe Vale South are also in the school zone for Strathmore Secondary College, which is a really popular public school,” said Ms Chamberlain.
“So we are seeing people who are getting priced out of Strathmore considering these two so-called bridesmaids suburbs as an alternative.”
Mr Shaw agrees Pascoe Vale and Pascoe Vale South provide great value for home buyers who have been priced out of Strathmore and Coburg, once bridesmaids suburbs themselves to Essendon and Brunswick, respectively.
85 Royal Parade, Pascoe Vale South VIC 3044
Jeremy Sheppard, head of research at Empower Wealth, says the ripple effect which determines the next generation of bridesmaid suburbs typically begins with the sought-after suburbs and “tends to ripple outwards from there, to the next suburb along, until the price goes up too high there and home buyers start looking to the next neighbouring suburb along”.
“It does tend to ripple from the inner suburbs, outwards towards the fringe suburbs, but sometimes it’s far from precise and you find that there’s some suburbs it misses … sometimes for very valid reasons, such as small block sizes or it could have a stigma for some reason, or it could be at the foothill of an ideal suburb, so it doesn’t have the views,” he said.
The classic ripple effect he describes has also seen Thomastown, 17 kilometres north of the CBD, emerge as one of Melbourne’s newest bridesmaid suburbs in 2020.
“So, it used to be that if you couldn’t afford to buy in Preston, you and had a look at Reservoir, but now a lot of home buyers are finding they have been priced out of Reservoir, so they’re looking towards places like Thomastown, where they can get that bigger block of land,” said Ms Chamberlain.
37 Alvarado Avenue, Thomastown VIC 3074
Fellow buyers advocate Cate Bakos agrees Thomastown provides a great option for those who have been priced out of nearby Preston and Reservoir.
“Some people just don’t want to cross the Ring Road over to Thomastown, but once you do, you do find there is a great community and a lot of opportunity to purchase big block and to get your hands on a house for sub-$700,000. We think it’s a great area,” she said.
Bride suburb:
Preston: $978,000
Previous bridesmaid suburb:
Reservoir: $760,000
New bridesmaid suburb:
Thomastown: $612,500
Why not consider:
Lalor: $612,500 or Epping: $600,000
Ms Bakos says Chelsea to the south of the city is another bridesmaid suburb to watch in 2020.
“If home buyers are finding they are getting priced out of suburbs like Mordialloc and Parkdale, they should be looking at Chelsea,” she said.
12 Showers Avenue, Chelsea VIC 3196
“It’s 15 minutes up the road, it’s got great cafes and the surf life saving club and arguably one of our best beaches.”
Bride suburb:
Parkdale: $1,173,730
Popular bridesmaid suburb:
Mordialloc: $965,000
New bridesmaid suburb:
Chelsea: $815,000
Several buyer’s advocates noted that home buyers seem far more open to considering suburbs outside their preferred location since the COVID-19 pandemic hit.
“I think with many people working from home now and not having to necessarily go into the office at all or as often, then there’s less sort of pressure to be close to a train station or closer to the city,” she said.
“It’s opened up a few more options for people.”
Miriam Sandkuhler, chief executive and property advocate at Propery Mavens, lists Albion as one to watch in the west, for those who have been priced out of nearby Footscray, West Footscray and even Sunshine.
“There are some great 1950s and 1960s-style properties within walking distance to the train station which gives this area easy access to the city. Like nearby Sunshine, which has benefitted from the ripple effect from Footscray for the past three or four years, we are seeing the younger, smarter set targeting smaller homes on decent-sized blocks in this area,” she said.
Bride suburb:
Footscray: $855,000
Popular bridesmaid suburb:
Sunshine: $760,000
New bridesmaid suburb:
Albion: $745,000
Ms Sandkuhler says there are several factors to weigh up when considering whether to “buy into a bridesmaid suburb or swoop off with the bride”.
“Typically, the ripple-out effect sees a bridesmaid suburb post rapid gains over a year or two or three, before settling back into its previous growth pattern so if your goal is quick gains, then buy the bridesmaid,” she says.
“But real estate is a longer-term game, so the best performing locations are those with the most factors working in their favour. As a home buyer you’re more likely to do better buying a property with the style and accommodation you want in the best location your budget will stretch to.”