Is Glen Waverley out of control?

W

willister

Look at link below and price tag:

http://house.ksou.cn/p.php?q=Glen+Waverley&sta=vic&id=500776

Not sure if the price is incorrect but $2.675mil to be precise for that block? Looking at the ad, the house is old - can possibly reno it but probably not worth your while. Overall, this is about $3.1K per m2 for that house/land.

I rent around here, whilst it's relatively a good place to live in, I don't think the prices are reflective of the value around here. The Mainland Chinese prop up the market - it's very visible on my weeknight jogs I can see scores of Audis/BMWs in McMansion garages but really $2.6mil for a block of land with a house worth at best $50K (I'm even being overly generous here), I cannot imagine the streets that sit nearby it and closer to the GW CBD/Station and what the h*ll they are worth??!??!?

Given places like Ashburton are on average $1.1-$1.2mil for a similar size block, I cannot imagine how much GW is overpriced by. Bare in mind, Ashburton is 12km from the CBD vs Glenny's 19km/20km and the former is accessible to the CBD by 2 lines (Alamein and Glen Waverley).

Can anyone explain to me the logic for the GW prices????
 
Yep it's out of control.

The question is, is this change permanent? ie will Glen Waverley now forever sell close to Albert Park/South Yarra prices, or will it all crash when either the Chinese disappear or become more sophisticated?
 
Deltaberry said:
Yep it's out of control.

The question is, is this change permanent? ie will Glen Waverley now forever sell close to Albert Park/South Yarra prices, or will it all crash when either the Chinese disappear or become more sophisticated?
Click to expand...

:eek: are you suggesting that the chinese will stop investing if it becomes more sophisticated!!!:eek:
 
Deltaberry said:
Yep it's out of control.

The question is, is this change permanent? ie will Glen Waverley now forever sell close to Albert Park/South Yarra prices, or will it all crash when either the Chinese disappear or become more sophisticated?
Click to expand...

The whole "game" of Glen Waverley is determining what it's true worth is, or in other terms how much is it exactly is it overvalued by?

After 3 or so years of living here, I still cannot work out for the life of me why land here is worth so much to the Chinese? Using basic principles of land worth and very basic assumptions:

Base price of Melbourne house (assuming 600m2): $600K.

1. Proximity to CBD: It is give or take 19kms to the CBD. It's not exactly close, at best considered a middle rung suburb. + $100K.

2. Proximity to the bay: It is not a bayside suburb. +0K.

3. Proximity to "good schools" - It has Wesley College (private) and Glen Waverley Secondary. Both are rated as "good schools" and have high Asian populations who excel at rote learning/memorisation. This deserves an entire thread itself, so I won't delve into much of this. Monash University is close by.

+150K

4. Proximity to Transport: Has own train line, is a bus hub to Box Hill, Clayton, Springvale, Knox - so basically East and South East Access.

+ 200K.

5. Amenities: Glen Shopping Centre, lively somewhat small shopping strip - mostly Asian eateries and groceries. Novotel is here, Village Cinemas, Aquatic Centre on Waverley Road, host of tutoring services as well.

+50K.

6. Greenery: Some areas have nice views of Mt. Dandenong Ranges, but a smallish pocket.

+50K.

At best for a decent block with an old 70s house = $1.150K (1.15mil) so therefore most blocks here are overvalued imho by $400-$600K.

Granted, having lived my fair share of suburbs in Melbourne and Sydney, I do think it's desirable to live here, it DOES tick most boxes if you're a young family like me, but the price is outrageous.

The Chinese love it due to the high concentration of Asians and the perceived "good school" - driving prices into outrageous territory.
 
willister said:
After 3 or so years of living here, I still cannot work out for the life of me why land here is worth so much to the Chinese?

The Chinese love it due to... the perceived "good school" - driving prices into outrageous territory.
Click to expand...


In China and most Asian countries, good schools are usually public schools. Private schools (eg international schools) are usually for rich kids who couldn't get into a good public school, and the parents are embarrassed about sending them to a tier 4 school.

Hence Glen Waverley High in Glen Waverley is a better school than say MLC or Melbourne Grammar to most new migrant Chinese.
 
The driving skills or lack there of are defiantly out of control.
I have been known to grab a cup of coffee at the glen and sit in the car park on Saturday morning watching for car parking crashes. 9 months ago I saw 2 unfold in front of my eyes and the aftermath of another.
Reminds me of Sunnybank in Brisbane where I would add 10km to a trip if I was on a motorcycle to avoid dying.
 
The Y-man said:
Yuuup.....touch parking capital......

The Y-man
Click to expand...

Getting off topic, but about 3-4 years back, maybe 5? Footscray implemented parking ticket cameras if you stopped for more than 1 minute or so? A friend worked at the council and said the city made heaps of $ and actually improved traffic dramatically. Don't recall the reason they stopped it, I think the traders somehow won as it decreased business exponentially.

Oddly, I find Springvale's Safeway parking not too bad....and Box Hill isn't as bad.
 
glen waverlely prices shooting up,

I just have this gut feeling, that a mihi crash is brewing for this suburb????

as in pries are going flatten for years to come,
obviously good if you bought before but bad if you buy niw

the fundamentals are great

what are others doing/thinking?
 
Past 3 months have seen some crazy sold prices...

http://house.ksou.cn/p.php?q=Glen+Waverley&sta=vic&id=527786

A lot of money for a 740sqm block..

http://house.ksou.cn/p.php?q=Glen+Waverley&sta=vic&id=36375

Very nice home but hows the sale price! Would have been a nice little profit on this one.. Block last sold in 2010 $1,140,000.

Also the first 2 completed homes down Rose Avenue (next to Myers Ave) after the land release sold late last year for $3mill accordingly to a builder I was speaking to.

Can it keep going? I read recently of a planned $500mill redevelopment of The Glen shopping centre including three apartment towers offering more than 500 new residences etc etc. Surely this will only help fuel demand.
 
Last edited:
Deltaberry said:
In China and most Asian countries, good schools are usually public schools. Private schools (eg international schools) are usually for rich kids who couldn't get into a good public school, and the parents are embarrassed about sending them to a tier 4 school.

Hence Glen Waverley High in Glen Waverley is a better school than say MLC or Melbourne Grammar to most new migrant Chinese.
Click to expand...

I can attest to this. I'm from an Asian family background myself, and to most Asians, 'Good school' = prestige, 'unable to enter good schools' = shame. I don't necessary agree to this myself......but there's some truth to this where the group/peers you mingle with shapes you in some way.
 
Mick and Andrea said:
The driving skills or lack there of are defiantly out of control.
I have been known to grab a cup of coffee at the glen and sit in the car park on Saturday morning watching for car parking crashes. 9 months ago I saw 2 unfold in front of my eyes and the aftermath of another.
Reminds me of Sunnybank in Brisbane where I would add 10km to a trip if I was on a motorcycle to avoid dying.
Click to expand...

So true, I work nearby and when I ride my bike in I make sure I stay clear of Springvale road anywhere near The Glen. Usually take the longer and slower route of Blackburn rd, even that can be a bit dicey!
 
dan_89 said:
Past 3 months have seen some crazy sold prices...

http://house.ksou.cn/p.php?q=Glen+Waverley&sta=vic&id=527786

A lot of money for a 740sqm block..

http://house.ksou.cn/p.php?q=Glen+Waverley&sta=vic&id=36375

Very nice home but hows the sale price! Would have been a nice little profit on this one.. Block last sold in 2010 $1,140,000.

Also the first 2 completed homes down Rose Avenue (next to Myers Ave) after the land release sold late last year for $3mill accordingly to a builder I was speaking to.

Can it keep going? I read recently of a planned $500mill redevelopment of The Glen shopping centre including three apartment towers offering more than 500 new residences etc etc. Surely this will only help fuel demand.
Click to expand...

If the block sold for $1,140,000 and assuming that house was "luxury" and $20K per square x 68 = $1,360,000 to build, total cost price would be $2,500,000...maybe $2,700,000 allowing for a margin for error. Flipping it for $3,308,000 gives you a $600-$800K margin. Whopping, unbelievable.

The area around Rose/Myers streets or surrounding Wesley College is really overpriced and speculated. Easily the Glen Waverley's blue chip area...wedged between 2 schools, The Glen and two train stations both equal distant.

I believe there will be an oversupply of apartments vs waning demand if those apartment blocks are built.
 
Glen waverley has turned into a complete joke, the money they are dropping on houses is not worth the price! Some much better areas to buy in with that kind of money, must be a bubble and wonder when it will be crashing down.
 
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