Ferntree Gully: Buyers Guide

Ferntree Gully is a suburb located in the eastern part of Melbourne, the capital city of Victoria. It is situated at the foothills of the Dandenong Ranges, approximately 32 kilometres east of the Melbourne city centre.

Ferntree Gully is known for its natural beauty, with lush forests, fern gullies, and scenic walking tracks. The Dandenong Ranges National Park is nearby, providing opportunities for outdoor activities such as hiking, picnicking, and birdwatching.

The suburb has a mix of residential, commercial, and industrial areas. There are shopping centers, restaurants, cafes, and other amenities available in the area to cater to the local community. From an investment standpoint, Ferntree Gully presents a diverse real estate landscape. Residential properties in Ferntree Gully cater to a growing demand, and with its scenic surroundings and proximity to amenities, they hold great potential for long-term capital growth and rental returns.

Ferntree Gully is well-connected to the rest of Melbourne by public transport, including train and bus services. It also has easy access to major arterial roads, such as Burwood Highway and Eastlink, making it convenient for commuters.

Overall, Ferntree Gully offers a combination of natural beauty, convenient amenities, and proximity to both Melbourne and the Dandenong Ranges, making it an attractive place to live for many residents.

Investing in Ferntree Gully

Ferntree Gully Snapshot

The median price of houses and units in Ferntree Gully are $850,000 and $657,500 respectively, with good rental yield at 3.0% and 3.5%. The houses enjoyed a fantastic growth rate of 7.2% annually on average for the past 10 years, while the units are only slightly lower at 6.0% 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

Ferntree Gully Train Station is located at the north east part of the suburb. There are shops and cafes in the vicinity, with Dandenong Ranges as the backdrop. There is no new apartment or townhouse in this area due to the council’s plan to preserve vegetation at the foothills of the Dandenong Ranges, however there are quite a number of units developed some years ago before the development restriction came into effect.

Mountain Gate Shopping Centre is located at the centre of the suburb, including grocery giants like Woolworths and Coles along with Australia Post, cafes and other shops. You will find some newer units very close to this shopping area, at a good entry price point and rental yield.

Mountain Gate Primary School is one of the top schools in the state, located just south of Mountain Gate Shopping Centre. Due to the proximity to the shopping centre as well as within short distance to the school, the properties within the school zone are generally quite sought after.

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 Ferntree Gully

From the development standpoint, Ferntree Gully can be divided into half: west of Dorset Road which is not affected by DDO and present more development opportunities, and east of Dorset Road which is affected by DDO and are more restricted when developing.

Foothill of Mount Dandenong

As Ferntree Gully 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.

Interestingly, the Ferntree Gully Train Station is within this area, and despite being so close to a train station, the land around it is still affected by DDO, hence decreasing the development opportunities in this area.

Mountain Gate

Mountain Gate Shopping is at the centre of Ferntree Gully, with grocery giants like Woolworths and Coles along with Australia Post, cafes and other shops. The area adjacent to this shopping district is zoned GRZ3. A residential land is typically about 720sqm to 740sqm, and usually developed into 3 to 4 double storey units. House (Land) prices are about $875,000 to $950,000, while unit prices are about $630,000 to $740,000.

The Most Common Development

The rest of Ferntree Gully 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 $720,000 to $1,000,000, while the townhouses are valued at about $650,000 to $960,000.

The Fun Stuff

While you are in the area, try Kebab Thyme and grab a coffee from Micah Coffee Brewers just next door. Also enjoy delicious cakes at Frank’s Cakes.

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