Melbourne Boom...Take 2!

JIT said:
Starting to see a lot more listings of better quality property now...
Click to expand...

In which areas have you noticed more quality listings occuring? I've been looking at North Melbourne and Carlton North. Listings still seem to be down here.

It will be interesting to see the clearance rate this weekend.

Regards Jason.
 
jingo said:
In which areas have you noticed more quality listings occuring? I've been looking at North Melbourne and Carlton North. Listings still seem to be down here.

It will be interesting to see the clearance rate this weekend.

Regards Jason.
Click to expand...

Inner east, Camberwell and surrounding suburbs. Especially for good 3x2 units, as there were hardly any of these around in the last 6 months...
 
vuster said:
701K for this house in Ringwood??? It was on the market at 500K according to the herald sun.

http://www.realestate.com.au/cgi-bi...r=&cc=&c=71693744&s=vic&snf=rbs&tm=1251101920
Click to expand...

FYI this property is located within the high density zone of Ringwood. The planning permits allow for multi story apartments. The council is encouraging these sought of development.

This particular site has approval for a 26 apartment delevopment. Just down the road a similar development sold all 22 apartments before construction for prices between 310-440K.

Do the sums and 710K is not so bad......
 
undercover said:
FYI this property is located within the high density zone of Ringwood. The planning permits allow for multi story apartments. The council is encouraging these sought of development.

This particular site has approval for a 26 apartment delevopment. Just down the road a similar development sold all 22 apartments before construction for prices between 310-440K.

Do the sums and 710K is not so bad......
Click to expand...


If the property is really worth 710K then obviously the agent and vendor seriously undervalued the property given that the property was on the market at 500K.

The advertisement has no mention of a permit for 26 apartments to be built on the 715sqm block. It just mentions "dual occupancy" potential. I would imagine that you would need at least a few adjacent blocks to build that many apartments.
 
vuster said:
If the property is really worth 710K then obviously the agent and vendor seriously undervalued the property given that the property was on the market at 500K.

The advertisement has no mention of a permit for 26 apartments to be built on the 715sqm block. It just mentions "dual occupancy" potential. I would imagine that you would need at least a few adjacent blocks to build that many apartments.
Click to expand...

The agents price the property at 500k just in case no developer or builder are interested in the property to ensure a sale either way.

What you may not know is that the neighbouring blocks are around 1000 to 1500sgm and are being held (land banked) by a large development company. This piece of land was the last piece in the puzzle. The land in this area is all zoned for the grand 2030 program.

I have seen what is proposed. The developer whom purchased it owns the back neighbouring property. The DA is not offically approved but this deal was done with council 4-5 years ago. The agent just got lucky with the listing because the family whom inhertied the property wanted to maximise their buck.
 
undercover said:
FYI this property is located within the high density zone of Ringwood. The planning permits allow for multi story apartments. The council is encouraging these sought of development.

This particular site has approval for a 26 apartment delevopment. Just down the road a similar development sold all 22 apartments before construction for prices between 310-440K.

Do the sums and 710K is not so bad......
Click to expand...

I agree Undercover. In my opinion, that 28 Bond St land (substantial land I must say) is in one of the very best and central positions of Ringwood and such a price comes to me as no surprise at all. These days, especially when we are dealing with potential development-like properties, it is often hard to ascertain an applicable price range/quote or reserve because people's perceptions and ability of 'highest and best use' varies enormously. For example, if you were to simply renovate the house, it may not even be worth the $500K reserve (I am assuming this was the reserve). However, if you were to develop it as specialist consulting suites (of a commercial nature thus), you would most likely pay a fair bit more over $500K. Obviously the guy who purchased it would have done his sums (you would hope anyway, hahaha) and compared to everyone who failed to secure the property, it is fair to say he would be able to develop it to his opinion of the market's 'optimum highest and best use' assuming it roughly (and I use the term roughly loosely) goes to plan.

If you ever go to auctions and see past sales, you would find in many cases that anything with development-sized land could go way way beyond the expected price range or reserve to the point where price ranges become stupendously irrelevant. In fact, land and subdivision valuation is a unique skill in itself. There are just so many permutations for developments!

Btw, Ringwood is an awesome area in my opinion. Definitely one of the better and stronger suburbs in outer Melbourne, given its transit hub location, infrastructure, Eastlink, central transport network, Eastland shopping centre, encouragement for developments as part of Melbourne 2030 etc.
 
My broad prediction is that we have a 2-3 month window left this year (until Xmas) for buyers to try and get a Melbourne property, after which (in early 2010) prices are going to get to ridiculous levels.
 
JIT said:
My broad prediction is that we have a 2-3 month window left this year (until Xmas) for buyers to try and get a Melbourne property, after which (in early 2010) prices are going to get to ridiculous levels.
Click to expand...

JIT, are you referring to Melbourne in general or certain areas and property types???
 
JIT said:
My broad prediction is that we have a 2-3 month window left this year (until Xmas) for buyers to try and get a Melbourne property, after which (in early 2010) prices are going to get to ridiculous levels.
Click to expand...

Its starting already.

Prices are continuing to rise as compared to 3-4 weeks ago.

Getting near impossible to get a 1BR for less than 300K in the inner city suburbs.
 
lccorp1997 said:
Its starting already.

Prices are continuing to rise as compared to 3-4 weeks ago.

Getting near impossible to get a 1BR for less than 300K in the inner city suburbs.
Click to expand...


Yes, I agree. 1 bedroom flats in many areas (Fitzroy, Richmond etc) are fetching high $300's. Not long ago you could have picked these up for around $220 or so.

2 bedroom flats are still available in some inner areas for under $400,000. But they usually come without a carspace/carport, and in some cases are stratum titled. For example this one which sold in North Melbourne on Saturday for $364,500.

http://www.realestate.com.au/cgi-bi...r=&cc=&c=56299141&s=vic&snf=ras&tm=1254648803


This 2 bedroom flat, also in North Melbourne, sold for $378,000 a couple of weeks ago. It is ground floor needs renovating and comes without a carspace/off street parking. As the miniboom was picking up pace in 2007, top floor flats/units with carspaces/carports in North Melbourne were selling for this price and higher. Now inferior units are selling for these prices.

http://www.realestate.com.au/cgi-bi...TRALIA&c=32783404&s=vic&snf=ras&tm=1254649206


Will be interesting to watch what happens to prices over the next couple of months.


Regards Jason.
 
jingo said:
Will be interesting to watch what happens to prices over the next couple of months.
Click to expand...

When interest rates start to rise, more normal conditions will prevail. There may be a bit of confidence around, at the moment, as there is talk of coming out of the recession we did not have.
 
DeeHwa said:
I agree Undercover. In my opinion, that 28 Bond St land (substantial land I must say) is in one of the very best and central positions of Ringwood and such a price comes to me as no surprise at all. These days, especially when we are dealing with potential development-like properties, it is often hard to ascertain an applicable price range/quote or reserve because people's perceptions and ability of 'highest and best use' varies enormously. For example, if you were to simply renovate the house, it may not even be worth the $500K reserve (I am assuming this was the reserve). However, if you were to develop it as specialist consulting suites (of a commercial nature thus), you would most likely pay a fair bit more over $500K. Obviously the guy who purchased it would have done his sums (you would hope anyway, hahaha) and compared to everyone who failed to secure the property, it is fair to say he would be able to develop it to his opinion of the market's 'optimum highest and best use' assuming it roughly (and I use the term roughly loosely) goes to plan.

If you ever go to auctions and see past sales, you would find in many cases that anything with development-sized land could go way way beyond the expected price range or reserve to the point where price ranges become stupendously irrelevant. In fact, land and subdivision valuation is a unique skill in itself. There are just so many permutations for developments!

Btw, Ringwood is an awesome area in my opinion. Definitely one of the better and stronger suburbs in outer Melbourne, given its transit hub location, infrastructure, Eastlink, central transport network, Eastland shopping centre, encouragement for developments as part of Melbourne 2030 etc.
Click to expand...

I have faith in Ringwood also, maybe a little biased having 3 IP's there :D

IMO it is better value then Mitchem.
 
undercover said:
I have faith in Ringwood also, maybe a little biased having 3 IP's there :D

IMO it is better value then Mitchem.
Click to expand...

I don't know much about Mitcham so can't comment there, but a lot more about Ringwood, probably due to more publicity about it. However, I do personally know the developer of the Mitcham Village apartments and they are selling OTP like hot cakes and the developer is thinking of raising prices on them (in fact, he is fully pissed off they are selling so quickly because obviously in his opinion, the price is too low)

Great foresight in the Ringwood area I must say! (to have 3 IP's)
 
DeeHwa said:
I don't know much about Mitcham so can't comment there, but a lot more about Ringwood, probably due to more publicity about it. However, I do personally know the developer of the Mitcham Village apartments and they are selling OTP like hot cakes and the developer is thinking of raising prices on them (in fact, he is fully pissed off they are selling so quickly because obviously in his opinion, the price is too low)

Great foresight in the Ringwood area I must say! (to have 3 IP's)
Click to expand...

I was lucky enough to work in the town planning department of the local council (maroondah), so I got to see what is being planned and the aim for Ringwood over the next few years.

I think some people would be surprised with the amount of planning and the scope of development which will occur in Ringwood shortly.
 
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