Melbourne's heating up...

jackbak said:
But doesn't the vendor normally set the reserve on the day of the auction and the guide price is determined by the agent not the vendor?
Click to expand...

I went to an auction that was quoted $900k-1.1m. At $1.08m, the agent declared the property was on the market.

The risk was on the vendor. It could very well have sold at $1.08m and nothing more.

In the end, people bidded it up to around $1.5m.

If you were a vendor, you don't go around "under quotting" to atract more people. You quote for the price you want to sell for, and hope people come bid. Seriously, would you quote your house at five dollars and set a reserve price at five dollars hoping people would actually see this as undervalued and bid it up to millions? What would you do if no one did that and all you got was five dollars? You selling your house still?
 
Deltaberry said:
I went to an auction that was quoted $900k-1.1m. At $1.08m, the agent declared the property was on the market.

The risk was on the vendor. It could very well have sold at $1.08m and nothing more.

In the end, people bidded it up to around $1.5m.

If you were a vendor, you don't go around "under quotting" to atract more people. You quote for he price you want to sell for, and hope people come bid. Seriously, would you quote your house at five dollars and set a reserve price at five dollars hoping people would actually see this as undervalued and bid it up to millions? What would you do if no one did that and all you got was five dollars? You selling your house still?
Click to expand...

Massive, what area??
 
Inner city. No shortage

44 Grattan Carlton
Quoted $950-1.1m from memory. On the market at $1.1m.
Sold $1.5m

65 Cardigan St Carlton
Quoted $1m-1.1m. On the market before $1.15m from memory.
Sold $1.46m

6 Leveson St North Melbourne
Quoted $1.15-1.25m. Think it got revised up $50k on the day, and was on the market before $1.3m.
Sold $1.51m

There's a bunch of others but I can't remember them now.
 
Hey guys, just quickly, I'll be fielding any questions at tonight's event that is detailed in the "Meeting Point" forum...

See you there!
 
Deltaberry said:
Inner city. No shortage

44 Grattan Carlton
Quoted $950-1.1m from memory. On the market at $1.1m.
Sold $1.5m

65 Cardigan St Carlton
Quoted $1m-1.1m. On the market before $1.15m from memory.
Sold $1.46m

6 Leveson St North Melbourne
Quoted $1.15-1.25m. Think it got revised up $50k on the day, and was on the market before $1.3m.
Sold $1.51m

There's a bunch of others but I can't remember them now.
Click to expand...

lets be clear here....the areas you mentioned are just outside the CBD. When referring to Inner city, I infer that as the CBD [ 3000 postcode] and absolute immediate surrounds such as southbank and docklands.

Those areas are not performing too well, havnt been for 2 yrs and unlikely for the next 2 yrs given the high supply.

I think what you are referring to is 2-5km from city center is experiencing the strongest growth, then followed by about 5-8km, and thats really the case in any aust metropolitan city.
 
eeew said:
lets be clear here....the areas you mentioned are just outside the CBD. When referring to Inner city, I infer that as the CBD [ 3000 postcode] and absolute immediate surrounds such as southbank and docklands.

Those areas are not performing too well, havnt been for 2 yrs and unlikely for the next 2 yrs given the high supply.

I think what you are referring to is 2-5km from city center is experiencing the strongest growth, then followed by about 5-8km, and thats really the case in any aust metropolitan city.
Click to expand...

so is that normal for the melbourne market??

in this order of CG boom
2-5km
then
5-8km
then
0km???


cos it seems that bang middle melbourne always seem to be the out of flavour area whenever its mentioned!!!! is it simply due to the sheer supply??? if this is case, surely someone with a crystal ball will be able to buy and make a killing
 
eeew said:
lets be clear here....the areas you mentioned are just outside the CBD. When referring to Inner city, I infer that as the CBD [ 3000 postcode] and absolute immediate surrounds such as southbank and docklands.
Click to expand...

Come on...who considers Docklands and Southbank in 'inner-city'? They are basically CBD.
 
eeew said:
lets be clear here....the areas you mentioned are just outside the CBD. When referring to Inner city, I infer that as the CBD [ 3000 postcode] and absolute immediate surrounds such as southbank and docklands.

Those areas are not performing too well, havnt been for 2 yrs and unlikely for the next 2 yrs given the high supply.

I think what you are referring to is 2-5km from city center is experiencing the strongest growth, then followed by about 5-8km, and thats really the case in any aust metropolitan city.
Click to expand...

To save the pain of explaining geography and bearings, here's some results from Google Map

Melbourne Central --> 65 Cardigan St (by walking). 700m. 10 minutes
Melbourne Central --> 7 Leveson St (by walking). 1.6km. 23 minutes
Melbourne Central --> Waterfront City (by walking). 2.6km. 34 minutes

As for CBD, here's one you might like to look at. 268-270 Lonsdale St. Sold for $7.xm. Rents for around $180k rent. Location?

Melbourne Central --> 268-270 Lonsdale St (by walking). 168m. 2 minutes

As I always say, I only look within 2km of Melbourne Central. Unfortunately that rules out far away and fringe areas like Docklands and Southbank.
 
TMNT said:
so is that normal for the melbourne market??

in this order of CG boom
2-5km
then
5-8km
then
0km???


cos it seems that bang middle melbourne always seem to be the out of flavour area whenever its mentioned!!!! is it simply due to the sheer supply??? if this is case, surely someone with a crystal ball will be able to buy and make a killing
Click to expand...

I think people are just confused about their suburbs.
 
I made the below prediction an another post at the beginning of the year. I
was mostly laughed at and told all the reasons why Melbourne would drop even lower. If the trend continues it might come very close!

Jan01-Dec31'st prediction (admit could be way off) = approx 10% growth

Admittedly my other prediction for the pies to win the GF was way off!
 
dredfern said:
I made the below prediction an another post at the beginning of the year. I
was mostly laughed at and told all the reasons why Melbourne would drop even lower. If the trend continues it might come very close!

Jan01-Dec31'st prediction (admit could be way off) = approx 10% growth

Admittedly my other prediction for the pies to win the GF was way off!
Click to expand...

Luckily you got the important one wrong! Couldn't handle the pies winning another one :eek:
 
What's going on in Melbourne right now is a tricky one.

On one hand, we have these crazy 'boom' style prices. On the other, pretty poor yields and lots of over supply in the Southbank / CBD / Docklands area.

I suppose we'll start to see more of a separation between what is easy to replace/build (MUDs) and what isn't (high land component properties).

Yes - usually - inner SE goes then it all ripples outwards over a 3-4 years.

Let's go Melbourne, let's go!!! :)
 
DavidMc said:
What's going on in Melbourne right now is a tricky one.

On one hand, we have these crazy 'boom' style prices. On the other, pretty poor yields and lots of over supply in the Southbank / CBD / Docklands area.

I suppose we'll start to see more of a separation between what is easy to replace/build (MUDs) and what isn't (high land component properties).

Yes - usually - inner SE goes then it all ripples outwards over a 3-4 years.

Let's go Melbourne, let's go!!! :)
Click to expand...

Some people make money there, but generally only very bad investors or overseas people (probably also very bad investors) buy Docklands or Southbank apartments.
 
Deltaberry said:
Some people make money there, but generally only very bad investors or overseas people (probably also very bad investors) buy Docklands or Southbank apartments.
Click to expand...


Surely at some time the areas will move up . Everything goes up eventually ....

All this negativity reminds mo of the local feelings about Rocky ... Why buy here ?

Prices never go up ,,

Which is least worse ? docklands or southbank ...

Cliff
 
Southbank is OK but the problem is supply. Docklands is a POS with little that can be changed.

But that's the thing - why wait for growth in an area where there is none - if you can buy in an area with established growth and demand? No brainer.
 
see_change said:
Surely at some time the areas will move up . Everything goes up eventually ....

All this negativity reminds mo of the local feelings about Rocky ... Why buy here ?

Prices never go up ,,

Which is least worse ? docklands or southbank ...

Cliff
Click to expand...

Depends where.

South Bank along St Kilda Rd, opposite the Tan, for example, is a very good location and very expensive. South Bank behind Crown Casino is derelict and disgusting. But they hold their prices

Docklands is in general windy, barren and falling in prices. It feels like a desert made out of concrete.

As Aaron says, there's plenty more suburbs to move up before these two..
 
On this subject.... one area that also gets a bad rap... Footscray, has a reputation of rough and rugged, perhaps these are the gems that are worth taking a punt on:)

Only 5km from Melb. excellent transport options run the gamut from trains, trams and buses, also there are many bike paths linking to other suburbs or the city. All types of services i.e. Hospitals, Library, Medical Facilities etc.
Massive stock of period weatherboard homes ready for the picking

Reminds me of areas in Perth (East Perth, Northbridge) some years ago now, a mixture of period homes, close to city went from a no go area to very desirable areas to live in today with medians close or over $1,000,000..

In terms of value for money Footscray appears to be one of the most affordable suburbs in Melb in relation to it's proximity to the CBD.


MTR
 
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