Boronia: Buyers Guide

Boronia, an inviting suburb nestled in the eastern part of Melbourne, Victoria, Australia, holds great promise for property investors. Situated approximately 32 kilometres from Melbourne’s bustling central business district, Boronia presents an attractive opportunity for those seeking to invest in the real estate market.

This suburb, which falls under the administration of the City of Knox, offers a harmonious blend of residential charm, local conveniences, and natural beauty. Its diverse range of residential housing, complemented by lush parks and recreational spaces, creates a desirable living environment that appeals to both tenants and buyers.

Investors will appreciate the presence of key commercial centres like the Boronia Mall and Boronia Junction Shopping Centre, ensuring residents have easy access to everyday essentials and shopping delights. Moreover, Boronia’s strategic location boasts excellent connectivity, thanks to its well-connected train station on the Belgrave line. This not only provides residents with seamless access to the heart of Melbourne but also enhances the suburb’s appeal for potential tenants.

Nature enthusiasts and outdoor adventurers will find Boronia particularly enticing due to its proximity to the breathtaking Dandenong Ranges National Park. The park’s natural splendour offers a wealth of recreational opportunities, further enhancing the lifestyle appeal of the suburb.

In summary, Boronia stands as a well-established and promising investment destination within Melbourne’s real estate landscape. Its blend of residential comfort, convenient amenities, and scenic surroundings creates a compelling proposition for property investors looking to capitalize on both rental income and potential appreciation.

Investing in Boronia

Boronia Snapshot

The median price of houses and units in Boronia are $826,750 and $640,000 respectively, with good rental yield at 3.0% and 3.7%. The houses enjoyed a good growth rate of 6.5% annually on average for the past 10 years, while the units are slightly lower at 5.3% growth annually. Although both houses and units are experiencing lower median prices compared to the past 12 months, they are still very resilient relative to Melbourne Metropolitan as a whole:

Notable Features

Boronia Train Station is located at the centre of the suburb. There are major grocery giants like Woolworths and Coles along with shops and cafes in the vicinity, with Dandenong Ranges as the backdrop. There are apartments and townhouses around the train station for ease of transportation. The Melbourne Eastern Hospital is located along Scoresby Road, not far away to the west of Boronia centre.

As Boronia is a relatively large suburb, prices of properties could vary depending on the location. The properties on the west side are more sought after due to the proximity to major shopping centre Westfield Knox. On the other hand, the north east side is closer to Kilsyth South, and features properties with larger land size and relatively lower price per square metre.

There are properties suitable for investors with various budget in Ferntree Gully. Here is a table to help narrowing the area and type of property to look for based on your budget:

Developing in Boronia

From the development standpoint, Boronia can be divided into 3 parts. Firstly, around the Boronia train station which is zoned GRZ4, suitable for medium density townhouses and apartments. Secondly, west of Dorset Road which is zoned NRZ4 and not affected by DDO, generally suitable for 2 to 3 dwellings developments. Lastly, east of Dorset Road which is affected by DDO1 and DDO2, which presents less opportunity for development due to larger minimum subdivided land size.

Foothill of Mount Dandenong

As Boronia is very close to the Dandenong Ranges, the council designated some areas to maintain larger lots and provide more opportunities for plants and vegetations, blending in well with the backdrop of the mountain. As such, the areas east of Dorset Road are affected by the Design and Development Overlay (DDO). Depending on the Schedule, there is a minimum subdivided lot size on the land. For example, the land with Schedule 1 (DDO1) must not be subdivided into less than 1,000sqm.

Boronia Train Station

Knox city council encourages the development of under-utilized lands around the train station, so more residents can access to the ease of transportation and rely less on cars. Therefore, medium density townhouses and apartments are the usual development format around this area, which is zoned GRZ4. A residential land is typically about 950sqm to 1,050sqm, and usually developed into 4 to 6 double or triple storey units. House (Land) prices are about $850,000 to $900,000, while unit prices are about $500,000 to $720,000.

Other Development

The rest of Boronia are mostly zoned NRZ4, with land size typically about 700sqm to 1,000sqm. The smaller lands are good for 2 units, either building 1 extra unit to the rear of the existing house, or knockdown and building 2 duplexes side by side. The bigger ones are usually developed into 3 townhouses, with a mix of double storey and single storey units. House (Land) prices are about $730,000 to $1,100,000, while the townhouses are valued at about $600,000 to $900,000.

The Fun Stuff

While you are in the area, try Ramen and Dumpling House for delicious dumplings and noodles, and grab a coffee and small bites from Two Cats Espresso Bar just across the Boronia Train Station.

Whether you want to start a development project or buy a brand new townhouse in Boronia, get in touch with us so we can help you realize your dream!