Melbourne Outer Suburbs - Ripple Effect
- Thread starter JIT
- Start date
Just my little 2 cents worth, i purchased in Mooroolbark which is just outside Lilydale. Lilydale is going up as well, but i was wrapped, as i purcahsed a 4 beddr in mooroolbark, for 336k in march 09. In oct it was valued by the bank who we all know is conservative and they valued it at 420k. I havent done a think except paint the outside...believe chirnside park shopping centre is about to get a bit of a revamp....
It's worth what someone is willing to pay.
Don't get too excited by bank valuations. Good or bad.
REIV CEO Enzo Raimondo
For those interested
Watch "December 2009 Quarter Property Update REIV CEO, Enzo Raimondo" on Realty Tube Australia - Real Estate Videos
A new record Melbourne median house price: $540,500
22-Jan-2010
The REIV December quarter Property Update has revealed a new record high median house price of $540,500, an increase of 15 per cent from $470,000 in the September quarter.
REIV CEO Enzo Raimondo said that it was the largest increase in the median house price since the REIV started keeping quarterly records.
In the December quarter of 2000 the median house price increased by 14.9 per cent and by 12.4 per cent in December quarter of 2007, compared to 15 per cent in the 2009 December quarter.
The combination of a better than expected economic conditions and strong population growth has resulted in an unprecedented level of pressure on housing costs in Melbourne.
The citys population is increasing by around 1,700 people per week and unfortunately housing construction has not responded as quickly as would be necessary to ease the pressure in the market.
The level of confidence in the market is apparent from the number of homes being bought and sold; the REIV has recorded an increase of 22 per cent since the 2008 December quarter.
This is highlighted by the strong growth in the middle of the market. The largest increases in median prices have occurred for homes priced between $500,000 and $900,000.
Burwood recorded the largest increase 23.1 per cent as the median increased from $658,000 to $810,000. It was followed by Ringwood, with a 16.2 per cent increase; Mount Evelyn, whose median increased by 16.1 per cent, and Brunswick, which now has a median of $724,250 after a 15.2 per cent increase.
Prices paid for units and apartments have also increased substantially, with a 7.6 per cent increase in the median from $410,000 in the September quarter to $441,000 in this quarter.
The suburbs with the largest increases in median price for units and apartments were East Melbourne, followed by Port Melbourne, Armadale, Caulfield North and Northcote.
House prices increased in key centres in regional Victoria as well. The median house price in the City of Ballarat increased by 7.3 per cent to $265,000; in Greater Bendigo by 4.3 per cent to $261,000; and in Greater Geelong by 4.4 per cent to $342,000, Mr Raimondo concluded.
www.reiv.com.au
For those interested
Watch "December 2009 Quarter Property Update REIV CEO, Enzo Raimondo" on Realty Tube Australia - Real Estate Videos
A new record Melbourne median house price: $540,500
22-Jan-2010
The REIV December quarter Property Update has revealed a new record high median house price of $540,500, an increase of 15 per cent from $470,000 in the September quarter.
REIV CEO Enzo Raimondo said that it was the largest increase in the median house price since the REIV started keeping quarterly records.
In the December quarter of 2000 the median house price increased by 14.9 per cent and by 12.4 per cent in December quarter of 2007, compared to 15 per cent in the 2009 December quarter.
The combination of a better than expected economic conditions and strong population growth has resulted in an unprecedented level of pressure on housing costs in Melbourne.
The citys population is increasing by around 1,700 people per week and unfortunately housing construction has not responded as quickly as would be necessary to ease the pressure in the market.
The level of confidence in the market is apparent from the number of homes being bought and sold; the REIV has recorded an increase of 22 per cent since the 2008 December quarter.
This is highlighted by the strong growth in the middle of the market. The largest increases in median prices have occurred for homes priced between $500,000 and $900,000.
Burwood recorded the largest increase 23.1 per cent as the median increased from $658,000 to $810,000. It was followed by Ringwood, with a 16.2 per cent increase; Mount Evelyn, whose median increased by 16.1 per cent, and Brunswick, which now has a median of $724,250 after a 15.2 per cent increase.
Prices paid for units and apartments have also increased substantially, with a 7.6 per cent increase in the median from $410,000 in the September quarter to $441,000 in this quarter.
The suburbs with the largest increases in median price for units and apartments were East Melbourne, followed by Port Melbourne, Armadale, Caulfield North and Northcote.
House prices increased in key centres in regional Victoria as well. The median house price in the City of Ballarat increased by 7.3 per cent to $265,000; in Greater Bendigo by 4.3 per cent to $261,000; and in Greater Geelong by 4.4 per cent to $342,000, Mr Raimondo concluded.
www.reiv.com.au
Went to an auction in frankston south today. A heap of people attended and I couldn't believe what the house sold for. 2 bedder unliveable with what looked like a protected tree smack bang in the middle of property. Fair price would have been $330K, sold for $370k! Joke.
Just thought I would update this thread.
I had this property re-valued at 640k (conservative on bank valuation) in April '10, so it ended up being 165k or 35% growth in just over 16 months.
(no renovations etc. of note done in this time)
Anyway in Melbourne - forget inner and possibly even outer too, the horse has well and truly bolted here!
The window for ideal timing of the market really is quite small.
Yea I know. Market is nuts.
This friend of mine bought a house in Canterbury 3-4 years or so ago for $1.6m. Spent around $2.0m in renovations. Now the agents are telling him it'd easily fetch $6.0m+
Crazy I tell you. Oh there's no holding costs incase you're wondering. They pay in cash.
I wasnt wondering but thanks anyway.
Hey pleasure. If anyone helps him sell it, will cut a commission... so if you have leads let me know, as I'm sure you would as an investment banker.
Given the huge investment in public transport about to occur around Werribee and Ocean Grove with the new rail line going in, it could be good to invest now in places close (but not too close) to the new train stations. Reliable and accessible public transport is a key factor that buyers and renters value when looking at property, especially with high petrol prices.
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Don't be sorry - it's not true.
Agree, all west melb is undervalued in my opinion.
I just have two homes in Melton revalued at $305k by bank form my estimate only which I got for $230k in late 2007. 3 years @ 9% growth there. And the rents cover them.
Peter
Bendigo is busy but don't know about the market. Lot of land to grow there.
I can say my homeland the "Macedon Ranges" has gone off. Based on what I saw in 2005 now on selling in 2010 almost doubled. I wish I had got in with more than PPOR (in hindsight) however rents are low.
I offer Castlemaine and Kyneton as something to watch.
Castlemaine has new road link a year back and very fast train with 1hr express to Melb.
Kyneton has risen a lot but still cheap buying under $300k.
Both have big blocks for future development.
Woodend and Macedon have no bargains. Very tightly held.
FYI Peter
Oops! Sorry Ben, it's not Ocean Grove but Point Cook that will be getting a new station (called Williams Landing): http://www.transport.vic.gov.au/web23/Home.nsf/AllDocs/7C5896995BC776AECA257625001CC9BE?OpenDocument
Ocean Grove residents will, however, benefit from the increased and faster services from Geelong to the CBD as a result of the Regional Rail Link project: http://www.transport.vic.gov.au/web23/Home.nsf/AllDocs/73320E3D17CA4B3ECA257625001C3D05?OpenDocument
Sorry for the confusion - there's heaps happening in the west!
