Capital Growth for Hawthorn/Hawthorn East
- Thread starter jaja
- Start date
Little bit out of date but:
Hawthorn 9.4%pa compunding over 10 years
Hawthorn E 10.6% pa compunding over 10 years
Cheers,
The Y-man
Hawthorn units are interesting. At first glance it seems they are a bargain as the median unit price is so low compared to that of houses. So maybe opportunity knocks as typcially units prices should be about 80% of house prices right?
However, there is a vast price spread due to local factors. My knowledge is limited but it seems in the 60s/70s there was a lot of developer activity knocking down period houses on large blocks and building those ugly brick high density appartment blocks typcial of the period. (Auburn Grove & Oxley Rd is an example of what must have once been a stunning tree lined street with large period houses, now turned into a street with a terrible streetscape.) Soon afterwards development was seriously curtailed and most of the suburb became the subject of historical overlays greatly restricting development. Now development is mostly of the high quality low density. However to confuse things there are several large developments of student accomodation around Swinburn Uni.
My opinion is that the low price of the large number of crappy 60s/70s units and some shoe boxes for students completely overwhelms the much higher prices of the med/high quality low density units that would be more typical in other blue chip suburbs. There is no way therefore that unit prices are going to rocket up to 80% of the cost of detached houses.
What does that mean for growth? Who knows!
However, there is a vast price spread due to local factors. My knowledge is limited but it seems in the 60s/70s there was a lot of developer activity knocking down period houses on large blocks and building those ugly brick high density appartment blocks typcial of the period. (Auburn Grove & Oxley Rd is an example of what must have once been a stunning tree lined street with large period houses, now turned into a street with a terrible streetscape.) Soon afterwards development was seriously curtailed and most of the suburb became the subject of historical overlays greatly restricting development. Now development is mostly of the high quality low density. However to confuse things there are several large developments of student accomodation around Swinburn Uni.
My opinion is that the low price of the large number of crappy 60s/70s units and some shoe boxes for students completely overwhelms the much higher prices of the med/high quality low density units that would be more typical in other blue chip suburbs. There is no way therefore that unit prices are going to rocket up to 80% of the cost of detached houses.
What does that mean for growth? Who knows!
Yes, plenty of apartments come up in these streets, and always a few 'for lease signs' around too. Interestingly, Michael Yardney's Buyers Agents recently bought one for Rolf Schaeffer on Auburn Grove. I don't like that street much myself.
GSJ