Melbourne's heating up...

Definitely - auctions can go either way. As I said earlier, the key in the current market is location. Some more crazy auction prices but in vey good locations.

7 Station St, Kew East. Sold for $1.5m, shy of 400sqm (built to look like an old weatherboard house). Could've bought this for $900k-$1m last year.

http://news.domain.com.au/photogallery/domain/7-station-street-kew-east-20130627-2ozak.html

677 Drummond St. 100sqm terrace in Carlton North. Sold $900k. Could've bought this for $680k or so last year.

http://www.jelliscraig.com.au/property/CARLTON/2967027/

23 Benjamin St Parkville. 90sqm single storey, 3-bedroom terrace in Parkville. $1.42m. Buy this for $850k last year.

http://www.nelsonalexander.com.au/properties/buying/parkville-23-benjamin-street
 
Jake Milne said:
Even though we've had a two year glut; many of you would have noticed by now that Melbourne's clearance rates have been holding firm above 70% (50%-60% in 2012) for several months now, we haven't really seen a lot of run away results at auction... until now.

On Saturday, I saw three auctions within the inner suburbs and it is clear that Melbourne is on the move.

E.g.

Beach Ave - Most recent comp (in better condition) was $580,000.

http://www.realestate.com.au/property-apartment-vic-elwood-114617475

SOLD - $615,000



Adams Street - Expected sale price $500-$550 with a chance to go higher.

http://www.realestate.com.au/property-apartment-vic-south+yarra-114627511

SOLD - $687,500



Park Street - Expected sale price low-mid 600's.

http://www.realestate.com.au/property-apartment-vic-st+kilda+west-114583467

SOLD $715,000


Once the AFL Grand Final has concluded the market will be in full swing and I dare say most inner areas will be seller's suburbs.
Click to expand...
Why does the Real State Industry of Victoria always pull out these same suburbs as the criteria for a Melb boom?

You forgot to chuck in a couple of the leafy inner suburbs for more comprehensive range. ;)

Nice to see the Auction suggested price ranges are nowhere near the sold price - for a change. :rolleyes:

Any fines forthcoming?

Thought so.

Whatever. Let the games begin.

As long as all of Melb goes up a lazy 10% I'm laughing, no matter how much BS the REIV comes out with this Spring..
 
Last edited:
Jake - What do you think of the market within the triangle formed by Eastern Freeway, EastLink and Monash Freeway?

Specifically in the sub 400K unit/townhouse market.
 
dtraeger said:
Jake - What do you think of the market within the triangle formed by Eastern Freeway, EastLink and Monash Freeway?

Specifically in the sub 400K unit/townhouse market.
Click to expand...

That's a pretty big area to comment on, there are a lot of suburbs with many differences in the east. If you're more specific I'll be able to help.

Sub $400k TH/Unit in this area?

You won't find many villas or townhouses in the $300's unless you look at Mitcham, Nunawading or Vermont ....even then finding something worth buying at this price would be a challenge.

You'd probably be better off going inner West or North if your budget for a villa or TH is 300k-400k. Certain pockets in Altona North or Pascoe Vale for example are quite nice and will be within budget.
 
A bunch of us have been saying it's on the move for the last 9-12 months.

Some pockets i look at day in day out have moved considerably.
 
oc1 said:
A bunch of us have been saying it's on the move for the last 9-12 months.

Some pockets i look at day in day out have moved considerably.
Click to expand...

Hi oc1
That's is why I decided to jump in sooner than later, I was considering purchasing January 2014 but am glad I have secured a site now.

It will be an interesting Spring.

Anyone for Broadmeadows.... always the joker:p
 
Hi Jake - any info or thoughts on the 'Oakhill estate' Reservoir/Preston.

I've noticed townhouses getting ridiculous $$. 3bed 2bath over $600k in the last few months..

Haven't been many houses for sale in recent times though.
 
BayView said:
You forgot to chuck in a couple of the leafy inner suburbs for more comprehensive range. ;)

Nice to see the Auction suggested price ranges are nowhere near the sold price - for a change. :rolleyes:

Any fines forthcoming?

Thought so.

Whatever. Let the games begin.
Click to expand...

How's this one BV, went to an auction a few months ago, price range was $810-890 and sold at auction for $1.285. More than 50% more than it's quoted range!!

The selling price was a fair price and quote range was way way way off so I made a complaint to Consumer Affairs Vic and just received a written response "CAV cannot compel a party to provide a desired outcome by the complainant, and is unable to make a binding determination. As such, CAV is unable to progress your complaint any further."

What a joke! I cant believe they let agents get away with this.
 
jackbak said:
How's this one BV, went to an auction a few months ago, price range was $810-890 and sold at auction for $1.285. More than 50% more than it's quoted range!!

The selling price was a fair price and quote range was way way way off so I made a complaint to Consumer Affairs Vic and just received a written response "CAV cannot compel a party to provide a desired outcome by the complainant, and is unable to make a binding determination. As such, CAV is unable to progress your complaint any further."

What a joke! I cant believe they let agents get away with this.
Click to expand...

If the reserve was in the range, the agent's done nothing wrong.

He can't help it if people bid above the reserve significantly.
 
Red Hot - means STOP for an investor

As an investor and a sound finance strategist any market that is hot has already moved outside the radar for an investor to take advantage of the growth.

Melbourne is certainly one such location and the caution signs are up from most property gurus (who do not exclusively promote this market).

Melbourne has had a glut of building approvals which will eat into any medium term growth prospects.

Property is a long term game and the hot end of the market is usually driven by home buyers rather than saavy investors.

So be very cautious on who is recommending what market and try and understand the wider implications of your strategy before you jump into such a market.
 
Deltaberry said:
If the reserve was in the range, the agent's done nothing wrong.

He can't help it if people bid above the reserve significantly.
Click to expand...

Really, I always thought that was underquoting... So they haven't done anything wrong, even though they knew that the property would sell for $400-500k above the quoted range?
 
KPDN said:
As an investor and a sound finance strategist any market that is hot has already moved outside the radar for an investor to take advantage of the growth.

Melbourne is certainly one such location and the caution signs are up from most property gurus (who do not exclusively promote this market).

Melbourne has had a glut of building approvals which will eat into any medium term growth prospects.

Property is a long term game and the hot end of the market is usually driven by home buyers rather than saavy investors.

So be very cautious on who is recommending what market and try and understand the wider implications of your strategy before you jump into such a market.
Click to expand...

^ kudos, very well said, or if you can get in, just at the start of a hot market, is an easy way for minimal risk CG
 
KPDN said:
As an investor and a sound finance strategist any market that is hot has already moved outside the radar for an investor to take advantage of the growth.
Click to expand...
True but something outside the square comes along.

KPDN said:
Melbourne is certainly one such location and the caution signs are up from most property gurus (who do not exclusively promote this market).
Click to expand...
Caution signs from Gurus?Not promoting the melbourne market?Well cool,wish the developers would do a u-turn:rolleyes:

KPDN said:
Melbourne has had a glut of building approvals which will eat into any medium term growth prospects.
Click to expand...
What area?
KPDN said:
Property is a long term game and the hot end of the market is usually driven by home buyers rather than saavy(savvy) investors.
Click to expand...
As a whole imo,1st home buyers are now driven by lir's.
KPDN said:
So be very cautious on who is recommending what market and try and understand the wider implications of your strategy before you jump into such a market.
Click to expand...

Imo target your area and surrounds,taking any recommendations should be taken with a grain of salt but not omitted.
 
Just in regards to the west, or specifically the 'inner west' of Melbourne, it's definitely hot in pockets.

I've been trying to acquire property in Newport and surrounds. Very difficult, strong competition and plenty of preauction sales!

In addition, Spotswood is comparable, and Williamstown flying as well.

I have been looking circa the 550k-650k ranges.

Prices are on the up!
 
jackbak said:
Really, I always thought that was underquoting... So they haven't done anything wrong, even though they knew that the property would sell for $400-500k above the quoted range?
Click to expand...

That's rubbish. By setting a reserve in the range, the vendor is taking a risk it may actually sell in that range and he will be compelled to sell.

If you were the vendor, would you set your reserve lower despite the fact you think it may sell higher?
 
Deltaberry said:
That's rubbish. By setting a reserve in the range, the vendor is taking a risk it may actually sell in that range and he will be compelled to sell.

If you were the vendor, would you set your reserve lower despite the fact you think it may sell higher?
Click to expand...

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?
 
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