Melbourne middle/outer eastern suburbs madness?

As long as there are plenty of these people around, pushing prices up then I wont be complaining! Keep up the good work I say:)
 
Alot of this going on, I live in the area, the market is insane, and will be for at least the next 12-24 months across GW, MW etc good as I have a fair chunk of property in this corridor :) The transformation in population in this area is amazing as is the transformation of Kingsway which is for everyone to see.

The gov't is supporting an increase to the significant investor visa too.....

Agree with the other posters, the neighbours will be happy as larry
 
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Handful of Melbourne suburbs raked in $10 billion last year

http://www.heraldsun.com.au/realestate/news/handful-of-melbourne-suburbs-raked-in-10-billion-last-year/story-fni0ckoj-1226863468751

Nathan Mawby - Sunday Herald Sun

JUST 20 Melbourne suburbs were responsible for more than $10 billion worth of real estate sales last year.

Suburb / Total spend in 2013:
1. Brighton / $923,112,445
2. Kew / $644,889,698
3. Toorak / $642,600,982
4. South Yarra / $580,958,730
5. Glen Waverley / $569,249,843...
 
http://www.heraldsun.com.au/realestate/news/handful-of-melbourne-suburbs-raked-in-10-billion-last-year/story-fni0ckoj-1226863468751

Nathan Mawby - Sunday Herald Sun

JUST 20 Melbourne suburbs were responsible for more than $10 billion worth of real estate sales last year.

Suburb / Total spend in 2013:
1. Brighton / $923,112,445
2. Kew / $644,889,698
3. Toorak / $642,600,982
4. South Yarra / $580,958,730
5. Glen Waverley / $569,249,843...

Mostly east / south east / south..
Well done. :)
 
i thought i was mad but who is paying these kinds of prices.

it seems there's some desperation to get property at any price these days!


I worked for Ray White in that area up until December and we had many similar results. These properties appeal to and generally sell to the many international buyers in the area who want properties that are new or near new and offer lots of accommodation for extended families.
 
International markets a very niche and interesting market. It's another form of mining towns, bit like the other thread about Gladstone crashing. Best to stick mainstream.
 
International markets a very niche and interesting market. It's another form of mining towns, bit like the other thread about Gladstone crashing. Best to stick mainstream.

Are you saying Melbourne's eastern suburbs is a niche market? I've always seen good growth in Melbourne eastern and south suburbs. I would consider these areas to be blue chip zones.
 
Are you saying Melbourne's eastern suburbs is a niche market? I've always seen good growth in Melbourne eastern and south suburbs. I would consider these areas to be blue chip zones.

The eastern and SE suburbs are blue chip but there are definitely niche pockets that are attracting international buyers and in some cases, crazy prices. Of course the demand (and ability to pay these prices) could disappear if the economy in China, India, etc slows considerably.

The same property was sold in Sept 2012 for $450k.

Conservative cost estimates:
Purchase price $450k
Stamp Duty $ 22k
Plans & Permits $ 40k
Holding costs $ 60k
Build costs $285k
Selling costs $ 30k
____________________
Total cost $887k

Capital gain $533k or 60%

This is a great return in only about 18 months, even once they pay their CGT.

Then onto the next development...
 
Are you saying Melbourne's eastern suburbs is a niche market? I've always seen good growth in Melbourne eastern and south suburbs. I would consider these areas to be blue chip zones.

Nope.

It depends what the local demand is like and composition of demand.

Toorak remains predominantly an Australian market, despite there being no shortage of international buyers being able to fork out $10m+ per house. Same with every blue bood suburb like Kew, Hawthorn, Canterbury, South Yarra.
 
So basically, you are saying to avoid areas with international investment as they are too volatile?

If shiz was to hit the fan in China, it will massively affect sentiments here, so it doesn't matter where you buy. Unless the Chinese investors have a fire sale, which they wouldn't, because Chinese likes to keep face.
 
The eastern and SE suburbs are blue chip but there are definitely niche pockets that are attracting international buyers and in some cases, crazy prices. Of course the demand (and ability to pay these prices) could disappear if the economy in China, India, etc slows considerably.

The same property was sold in Sept 2012 for $450k.

Conservative cost estimates:
Purchase price $450k
Stamp Duty $ 22k
Plans & Permits $ 40k
Holding costs $ 60k
Build costs $285k
Selling costs $ 30k
____________________
Total cost $887k

Capital gain $533k or 60%

This is a great return in only about 18 months, even once they pay their CGT.

Then onto the next development...

No way in 2 years the price of land there wasn't that cheap, are you sure? that's gotta be wrong.

you cant get a 600m2 block in forest hill for less than 650-700K now and your dreaming of 285K for a 48sq Waldorf by porter davis

reckon prices to do it now would be.....

a 650sqm land @ forest hill will be around say 675k
plus stamp duty 35K ,
+ 30k demolition, underground pit, and council permits,
plus 450K building, the basic PD Waldorf is 335K currently
+ 40k driveway and landscaping,
50K interest/holding cost ,
25K selling (agent) cost ,
the total cost will be over 1,300K.

If only sell for 1,420K, seems the return is just so so .... (1420/1300-1 = 9%)

+ also the headache and time to oversee the whole construction...

unless the land was significantly cheaper i can see the figures being that good.
 
No way in 2 years the price of land there wasn't that cheap, are you sure? that's gotta be wrong.

you cant get a 600m2 block in forest hill for less than 650-700K now and your dreaming of 285K for a 48sq Waldorf by porter davis

reckon prices to do it now would be.....

a 650sqm land @ forest hill will be around say 675k
plus stamp duty 35K ,
+ 30k demolition, underground pit, and council permits,
plus 450K building, the basic PD Waldorf is 335K currently
+ 40k driveway and landscaping,
50K interest/holding cost ,
25K selling (agent) cost ,
the total cost will be over 1,300K.

If only sell for 1,420K, seems the return is just so so .... (1420/1300-1 = 9%)

+ also the headache and time to oversee the whole construction...

unless the land was significantly cheaper i can see the figures being that good.

Sorry for late reply. I should have noted that the 2012 sale price and build costs I mentioned were sourced from RP Data. Obviously that doesn't mean they are correct but it is usually reliable for sale prices.

I'm guessing the land was that cheap as the house had been trashed by tenants and condemned (2012 photos on RP Data show no internal pics, temporary roof on part of the house and metal barriers blocking entrance to the property). It had been advertised for auction in Sept 2012 as "In excess of $420,000" by Ripple Wu from Ray White if you want to find out more info from her.

I assume the build costs I quoted are wrong but not my area of expertise, so I relied on the info I had. Either way, I'm sure the developer has done very well for themselves.
 
Jeez, Forest Hill is a looooong way from the CBD.... Eastern suburbs are going mental, wish it would trickle down to the South!
 
Jeez, Forest Hill is a looooong way from the CBD.... Eastern suburbs are going mental, wish it would trickle down to the South!

They almost got everything locally. No need to go to CBD (unless if you work there)..

I'm not surprise (being lived in south-eastern melbourne, as well).
 
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