Melbourne Market - 10-15 km

Hi All

Am interested to find out what is happening in this market.

Have been told the market has improved from 6 months ago.

Would like an update from those on the ground, ie are properties selling, how long is it taking, what is moving etc.


Thanks

MTR
 
Hi All

Am interested to find out what is happening in this market.

Have been told the market has improved from 6 months ago.

Would like an update from those on the ground, ie are properties selling, how long is it taking, what is moving etc.


Thanks

MTR

everything decent is selling , mostly at auction. I know agents that have 100% clearance rates the last 3 months.

bit crazy in my mind but that is where we currently are.

spoke to a buyers agent the other day, has over 20 orders booked and had missed 14 out of the last 15 auctions. A lot of the losses were to first home buyers beating the jun 30th deadline but now they are gone the build up of investors needs to be met, what happens after that not sure but certainly some strength in the market for the next 4-5 months for sure.

It's funny that at a lot of the auctions for what most would consider 'investment grade' properties there are multiple buyers advocates bidding against each other.

You need to find a way around competing on auction day in this environment as the prices being paid are too high in my opinion

Some great opportunities out there for those who can think outside the box
 
HI BT
Very interesting, want to get in before the herd, not sure whether the timing is right yet. Syd on the move, Melb usually follows, but nothing is normal or predictable anymore. Will follow this market closely.

Thanks
MTR
 
HI BT
Very interesting, want to get in before the herd, not sure whether the timing is right yet. Syd on the move, Melb usually follows, but nothing is normal or predictable anymore. Will follow this market closely.

Thanks
MTR

I think it is too late to be in front of the herd, I would say as a minimum up 10% in the sub $1m range this calendar year in most of 10-15k range

Alternatively you can look at the useless property data that gets reported that is so far from the mark at nearly all times it is frightening
 
Mate of mine is a valuer and bayside is up 15% from the doldrums of last year. Of course it was down 10-15% after the GFC so its back to where it was, which is of course way better than other asset prices, such as gold.
 
Inner city is booming. Have said it last time, saying it again. Loving it!

Hi Aaron
I know, you mentioned this.... and lucky you with your development going make a bundle. However in Perth inner city is within 10km of city..... so anything over 10km-15 km is middle ring, is this also booming.... such as Pascoe Vale, Glenroy, I am not feeling the love from RE agents in these areas:)
 
Enquiry levels for new apartment/unit developments in the middle ring has increased since March this year, and permits that clients have been sitting on for 1 year or so are calling to 'get a move on' building approval docs. Areas I speak of include Maribyrnong, Maidstone, Preston, Coburg Nth, Mordialloc, Malvern East. Although not all enquiries become built reality, it's a fair enough indication of where folks are looking at doing higher-density work, in addition to the inner-city.
 
Have been going to a few auctions in Sth Melb & Albert Park in the past month. None have sold and with minimal interest. I think the market is still very patchy.....
 
Hi Aaron
I know, you mentioned this.... and lucky you with your development going make a bundle. However in Perth inner city is within 10km of city..... so anything over 10km-15 km is middle ring, is this also booming.... such as Pascoe Vale, Glenroy, I am not feeling the love from RE agents in these areas:)

I thought inner city was 5km from city in Perth? Or simply one suburb from Cbd?
 
Have been going to a few auctions in Sth Melb & Albert Park in the past month. None have sold and with minimal interest. I think the market is still very patchy.....

That's unfortunate. Haven't looked at that side much as I don't see Albert Park as good value these days. Sth Melb still a bit industrial.

On the other side of the CBD in Carlton, Nth Melb, Parkville, Clifton Hill, Carlton North, Fitzroy North competition is intense at auctions. 5-6 bidder at every auction taking prices around 30% above top end of advertised range - and this is every auction I've been to with no exception. In fact it is so intense that I'm starting to see people make big offers pre-auction so they don't have to go through the pain and trauma. Due to the big demand, stock gets snapped up very quickly and suddenly there's no quality stock on the market again (as of last week).

In the CBD, demand for commercial has picked up a lot and there are some big price tags floating around at the moment. Local competition in this market is as strong as interest from offshore buyers.

Question is whether the ripple will flow on to Albert Park/Middle Park/Sth Melb/Port Melb. The latter two (especially Port Melb) has always been quite weak. There's also an abundance of supply - not sure why. I never quite liked the place so haven't really gotten around the understanding it.
 
5-6 bidder at every auction taking prices around 30% above top end of advertised range - and this is every auction I've been to with no exception.

Don't REAs give very conservative price guides for most auction properties in the hope that people will turn up, get emotional and pay over their limit/budget anyway?
 
Not really. Things will sell well within range and often pass in last year.

More importantly, the reserves are set within the ranges, so as a vendor you wouldn't actually take that risk and hope people get emotional. Obviously that's where the vendor expects to sell.
 
Not really. Things will sell well within range and often pass in last year.

I generally disagree with comment sorry Delta. Over the last 6 months clearance rates for all of Melbourne have been holding steady at circa 70%.

7 out of 10 properties sell under the hammer so a sale is more often than not.

Most properties tend to sell beyond their quote range at auction in Melbourne. Auction quotes are roughly 8% - 15% under the end sale price; this is common practice.

Often the reserve price will be within the initial range but I regularly here this from agents: "The vendor changed the reserve price on the day" or "The vendor increased the reserve in our pre-auction meeting yesterday."

----

As far as an overview of the last 6 months, Greater Melbourne has been growing, albeit slowly (about 1-2% for houses and 0-1% for units).

If you look closer at individual suburbs you'll see certain areas have increased by 5%-10%+ in value over the last 6 months. Just depends on where and what you're looking at...
 
In my opinion, the market in the vicinity of Armadale/Prahran/Toorak has picked up significantly as I've rarely seen a passed in status in my weekly scouring of the sold data.
 
If you look closer at individual suburbs you'll see certain areas have increased by 5%-10%+ in value over the last 6 months. Just depends on where and what you're looking at...

Correct. You need to pick your area/s carefully.

Buying development sites are more challenging compared to last year.

Oscar
 
I went to 20 auctions last 2 months around Manningham area. All sold much above the advertised price to Chinese buyers. It seems very hard to compete with them.

Then I talked to the agent, which only do private sale. All normal houses (not on the main road, rectangular block of land) can be sold within a day. I can't even get a chance to inspect it.
 
Often the reserve price will be within the initial range but I regularly here this from agents: "The vendor changed the reserve price on the day" or "The vendor increased the reserve in our pre-auction meeting yesterday."

On the day, at the moment of auction, the reserve is either in the range or it is not. Generally it is.
 
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