Melbourne median hits record $480,000

Hi Harris
thanks for the info appreciated.
I purchased 4 IPs in Broadmeadows over the last 5 months, very happy.

Cheers, MTR
 
hmm its an interesting one... i follow the 1 bedroom and 2 bedroom markets in murrumbeena, carnegie, caulfield, and armadale.

and the truth is there are just not enough for sale.


people are over paying.

There are properties selling on rental yields of 3.5% to 3.8%, from an investment view these doesnt seem to stack up.

When people are buying 1 bedroom units for 280k, and renting them out for $220-$230 a week... either rents need to sky rocket, or prices need to soften... either way... i dont see the value in these markets at the moment.
 
Yes I live in Carnegie and wanted to buy here but prices are too much for my budget. I saw a 2Br unit passsed in at 300k about 12 months ago get around 440k just recently. Only difference was time. A 1BR I looked at near the station got over 350k I saw in the results. Definitely on the boil here I'd say.
 
Aha moment - time to change strategy

Been a long time watcher and sometimes purchaser of detached dwellings in inner city Melbourne property. Whilst everyone knows the strength of the market througout this year, two auctions over the weekend (one in Windsor and other in Seddon) have crystallised in my mind, that there is little real value in this sub-market.

The latter in which I was seriously considering, the prices being paid are very very strong with multiple bidders (5 at each). I have also prided myself on being able to pick the value of properties, but both auctions went well over what comparable properties had sold for.

Windsor property sold for $726k whilst this Seddon property sold for $739k.

In late 2007 I purchased a similarly sized, far more original, better floorplan but arguably inferior located property in Windsor (a few mins walk from the one above). A deceased estate but in almost identical condition as this property. This property sold for over $115k more than what I had purchased it for. That is almost 20% above the 2007 value. I cannot see that being value relative to possible future capital growth and holding costs, even where yields are traditionally lower in inner city Melbourne.

From an investor's point of view, in the inner city Melbourne market for detahced homes is far too hot for a good value purchase in my opinion. If you have property there, enjoy the ride, hopefully it is not met by a 2008-like fall.

Might be time to change what and where I am going to buy.
 
Might be time to change what and where I am going to buy.
Sydney's Northern Beaches, anything dettached under $1M...

Not that I'm biased or pumping my market or anything! ;)

Cheers,
Michael

Disclaimer: I really really really want the Northern Beaches to boom. All my comments on this area should be read fully understanding that I am pumping this segment. Buy here and you have no recourse to beat me up if you're not a multi-gazzilionaire in a heartbeat.
 
Been a long time watcher and sometimes purchaser of detached dwellings in inner city Melbourne property. Whilst everyone knows the strength of the market througout this year, two auctions over the weekend (one in Windsor and other in Seddon) have crystallised in my mind, that there is little real value in this sub-market.

The latter in which I was seriously considering, the prices being paid are very very strong with multiple bidders (5 at each). I have also prided myself on being able to pick the value of properties, but both auctions went well over what comparable properties had sold for.

Windsor property sold for $726k whilst this Seddon property sold for $739k.

In late 2007 I purchased a similarly sized, far more original, better floorplan but arguably inferior located property in Windsor (a few mins walk from the one above). A deceased estate but in almost identical condition as this property. This property sold for over $115k more than what I had purchased it for. That is almost 20% above the 2007 value. I cannot see that being value relative to possible future capital growth and holding costs, even where yields are traditionally lower in inner city Melbourne.

From an investor's point of view, in the inner city Melbourne market for detahced homes is far too hot for a good value purchase in my opinion. If you have property there, enjoy the ride, hopefully it is not met by a 2008-like fall.

Might be time to change what and where I am going to buy.


The key in this sort of market is to find gems, not get carried away by emotional bidding etc. While I don't see downside risk at this stage, if downside does materialise (since the economy is still very cloudy ahead), it's the people who get sucked into the sort of auctions you talk about that will have the most problems. It's the same as the stock market boom before - the key is not to get carried away and keep bidding the prices up just because there's someone else out there bidding.

There're a few good places I've seen that barely attracted 10 people on auction day and subsequently passed in. I've known 2 people recently to buy below reserve price at good spots in inner city Melbourne after passing in. And yes I do mean inner city literally, such as Carlton and Richmond.
 
The key in this sort of market is to find gems, not get carried away by emotional bidding etc. While I don't see downside risk at this stage, if downside does materialise (since the economy is still very cloudy ahead), it's the people who get sucked into the sort of auctions you talk about that will have the most problems. It's the same as the stock market boom before - the key is not to get carried away and keep bidding the prices up just because there's someone else out there bidding.

There're a few good places I've seen that barely attracted 10 people on auction day and subsequently passed in. I've known 2 people recently to buy below reserve price at good spots in inner city Melbourne after passing in. And yes I do mean inner city literally, such as Carlton and Richmond.

are you able to share which properties they are by any chance? in carlton or richmond? I suppose these might have insufficient marketing or advertising
 
I mentioned a few months back that I thought Carlton and Nth Carlton was undervalued compared to say fitzroy and Northcote.

Only for certain houses though - especially sf 2 bedroon vics. The price is about the same - and it shouldnt be!

The reason IMO is that people think they are priced out. Also the above mentioned placed are very IN at the moment (last 20 years but evn more now)

The Gertrude st area of Fitzroy and Collingwood is the INNEST place in Melbourne - incase you cared - Quentine Tarrantino dinned there a few months ago, heaps of vintage clothes stores and organic bakeries. Stuff white people like!

google 'stuff white people like' before you crucify me...
 
I mentioned a few months back that I thought Carlton and Nth Carlton was undervalued compared to say fitzroy and Northcote.

Only for certain houses though - especially sf 2 bedroon vics. The price is about the same - and it shouldnt be!

The reason IMO is that people think they are priced out. Also the above mentioned placed are very IN at the moment (last 20 years but evn more now)

The Gertrude st area of Fitzroy and Collingwood is the INNEST place in Melbourne - incase you cared - Quentine Tarrantino dinned there a few months ago, heaps of vintage clothes stores and organic bakeries. Stuff white people like!

google 'stuff white people like' before you crucify me...


I think carlton is more expensive as fitzroy. The median sales for carlton is low as they have a lot of student accommodation which go for like mid 200Ks - 300Ks as opposed to proper apartments 70+sqm and above in carlton which ar e in the 500K-600K mark. If you try the houses or townhouses they're cost even more. Can't comment about collingwood as i haven't researched into that area.
 
dude i was talking about single fronted victorians

check this out

http://www.realestate.com.au/cgi-bi...r=&cc=&c=58780949&s=vic&snf=rbs&tm=1256620543

Same price as Northcote or Fitzroy

and this one that sold for 565k a few weeks ago

http://www.realestate.com.au/105959555

or this one

http://www.realestate.com.au/cgi-bi...r=&cc=&c=85164029&s=vic&snf=rbs&tm=1256620711

Please dont tell me they are on a main road or near a housing commission. Northcote and Fitzroy has them too - hehe

Believe me - its under priced!
 
aussierogue,

Those prices actually look reasonable compared to some heated areas of the Melbourne market currently. Are you actively looking to purchase these types of properties?

dude i was talking about single fronted victorians

check this out

http://www.realestate.com.au/cgi-bi...r=&cc=&c=58780949&s=vic&snf=rbs&tm=1256620543

Same price as Northcote or Fitzroy

and this one that sold for 565k a few weeks ago

http://www.realestate.com.au/105959555

or this one

http://www.realestate.com.au/cgi-bi...r=&cc=&c=85164029&s=vic&snf=rbs&tm=1256620711

Please dont tell me they are on a main road or near a housing commission. Northcote and Fitzroy has them too - hehe

Believe me - its under priced!
 
dude i was talking about single fronted victorians

check this out

http://www.realestate.com.au/cgi-bi...r=&cc=&c=58780949&s=vic&snf=rbs&tm=1256620543

Same price as Northcote or Fitzroy

and this one that sold for 565k a few weeks ago

http://www.realestate.com.au/105959555

or this one

http://www.realestate.com.au/cgi-bi...r=&cc=&c=85164029&s=vic&snf=rbs&tm=1256620711

Please dont tell me they are on a main road or near a housing commission. Northcote and Fitzroy has them too - hehe

Believe me - its under priced!

My bet. i've only been looking at carlton having bought there quite a few times.
The examples are Carlton North which is a different ballpark.

but interesting though.
 
No more buying for me atm - im actually about to renovate my Nortchote house - speaking to architects this week. Exciting. With my cash position and lack of debt I feel quite comfortable taking on a sizeable renovation.

Fingers crossed though....
 
I'd expect Carlton to be slightly more expensive than Fitzroy/Collingwood.

Basically the University factor. Plus quite a lot of people won't live in parts of Fitzroy or Collingwood, but would in say Carlton or Nth Fitz.

So Aussierogue could be onto something. I know I wouldn't have even looked at Carlton since the prices supposedly jumped massively there during 2007/8 (on lots of lists Carlton/Carlton Nth had the largest % increase).

Southern end of Carlton I would expect to be a lot pricier than north of Princess st though.
 
Same price as Northcote or Fitzroy

and this one that sold for 565k a few weeks ago

http://www.realestate.com.au/105959555

Please dont tell me they are on a main road or near a housing commission. Northcote and Fitzroy has them too - hehe

Believe me - its under priced!

Sorry, but that one IS across the road from Housing Commission AND isn't just on a main road - it's probably smack bang on the busiest road north of the city. I've driven past that and the other Victorians along there truckloads (an apt term) of times and repeatedly wondered who the hell would want to live there, be they an owner occupier or tenant.

And if the tunnel from the Eastern to Citylink goes through, it could be right under that funny dunny out the back which may cause some consternation...

Underpriced at $565,000? I think not.
 
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