"Parts of Melbourne in a bubble"
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Glen Waverley is probably first on my mind.Commercial shops same price as CBD.
I have been purchasing in a few different markets across Melbourne and it is definitely patchy. The eastern suburbs, in particular Glen Waverley, Mount Waverley, Wantirna and Wantirna South are very heated.
Wantirna and Wantirna South has gone up approx $100k since the beginning of this year for 3 & 4 bedroom family homes.
People are paying $900k plus whereas you could have purchased for early $800's in the beginning of the year.
Other markets such as Bon beach, Chelsea, Edithvale are in demand but not running away.
Wantirna and Wantirna South has gone up approx $100k since the beginning of this year for 3 & 4 bedroom family homes.
People are paying $900k plus whereas you could have purchased for early $800's in the beginning of the year.
Other markets such as Bon beach, Chelsea, Edithvale are in demand but not running away.
Yep south east is running hot. I think it's also a certain segment of the market.
Interesting article in Eureka Report this week positing that "Why Australian property is cheap."
Here is the summary and first paragraph
Summary: Australian property remains cheap compared to other nations despite comparatively high urban concentration, data provided by the McKinsey Global Institute shows. In fact, while debt is already high in Australia, international experience tells us there is no reason why it can?t push higher, particularly when three quarters of our household debt is being held by top income earners.
The discussion on residential property has become highly emotional and most of it has detached from any sensible analysis. The problem is that most commentators simply can?t fathom why we haven?t had a house price slump. It?s that frustration, rather than any rigorous analysis, that underpins repeated negativity on property as an investment. Those calls were, and are, based on a fundamental misunderstanding of economics ? flawed assumptions.
Interesting article in Eureka Report this week positing that "Why Australian property is cheap."
Here is the summary and first paragraph
Summary: Australian property remains cheap compared to other nations despite comparatively high urban concentration, data provided by the McKinsey Global Institute shows. In fact, while debt is already high in Australia, international experience tells us there is no reason why it can?t push higher, particularly when three quarters of our household debt is being held by top income earners.
The discussion on residential property has become highly emotional and most of it has detached from any sensible analysis. The problem is that most commentators simply can?t fathom why we haven?t had a house price slump. It?s that frustration, rather than any rigorous analysis, that underpins repeated negativity on property as an investment. Those calls were, and are, based on a fundamental misunderstanding of economics ? flawed assumptions.
Not the west, unless that's the only place you know.
Very bubbly. Had a friend just buy there, big price.
The Melbourne CBD including Southbank and Docklands is by far in the biggest propery bubble if you ask me.
You have already somewhat of an oversupply (just look at the docklands for sale section) that is about to get even more flooded with towers. Can't recall the exact number but by 2018 you can expect around 5 more towers in the sky and the biggest in Australia (I think) underway.
So who is buying all these? Foreign investors and the unsophisticated. Given lending is tightening then these are not going to be very attractive anymore, so who buys them all? No one! Well naturally developers need to drop their prices to attract something because they can't afford to hold.
So if someone wants to sell what do they do? They cannot match an old apartment with something never lived in so they need to drop their price.
Rinse and Repeat, bubble goes POP!
You have already somewhat of an oversupply (just look at the docklands for sale section) that is about to get even more flooded with towers. Can't recall the exact number but by 2018 you can expect around 5 more towers in the sky and the biggest in Australia (I think) underway.
So who is buying all these? Foreign investors and the unsophisticated. Given lending is tightening then these are not going to be very attractive anymore, so who buys them all? No one! Well naturally developers need to drop their prices to attract something because they can't afford to hold.
So if someone wants to sell what do they do? They cannot match an old apartment with something never lived in so they need to drop their price.
Rinse and Repeat, bubble goes POP!
i think people have money know how to spend it. if you came to live and had your kids going to school in these area you would know why people paying million for peace of mind
Yes I know why! To get into such prestigious public education institutions!
It's a matter of personal preference and priority. I can get it when people are paying millions to get into school zone of Glen Waverley, Balwyn North or Mt Waverley. But I am talking about Mitcham where people are paying 900k for a 450sqm block. Also, the kids can only excel in these schools if they attend tutoring excessively. I am not sure if I really want my son to do it and suffer from pressure from his peers. As said, personal perference and financial budget will make the call on where the rich people want to spend. But I still think that's a bubble in those areas and people are paying more for what they receive.
CBD AND Surrounds
I think the major problem will be the CBD and South Bank and Docklands however there are around 4500 apartments currently under construction. Many of these are small aimed at the reducing student market.
The banks will look at reducing there risk and rental demand will decrease.
Many of these properties sold into China may have been sold for well over there value.
My feeling is that when the market comes back it will be the CBD and some of the outer new home buyer areas that may well fall.
I think the major problem will be the CBD and South Bank and Docklands however there are around 4500 apartments currently under construction. Many of these are small aimed at the reducing student market.
The banks will look at reducing there risk and rental demand will decrease.
Many of these properties sold into China may have been sold for well over there value.
My feeling is that when the market comes back it will be the CBD and some of the outer new home buyer areas that may well fall.
I'd never buy in Sunshine for over 300k! And Wheelers Hill has to be the most overpriced concrete slab I've ever driven through.
You know those people who can't wait to get out of Noble/Doveton/Dandenong and move into country Berwick? Well add wheelers hill to that list, I don't care for schools and inconvenience of picking up computer parts. Everytime for the last 20yrs we've been there we've wanted to get out. It's a cluttered rundown cluster of concrete full of wreckless drivers. If you want the schools you'd be a fool to pay millions when you can simply rent in the zone, apply then buy a house in a nicer area for 1/6th of the price.
Same goes for Glen Waverley tbh.. one of the worst carparks in the SE. Wantirna is leagues nicer also. GW, Essendon etc are not "leafy suburbs" lol whoever thinks that has never been to an actual leafy suburb. GW is more a concrete slab with holes drilled into it so 1 little tree can be planted every 10 meters. Artificial green is worse than none, reminds me of the plastic fruit. Not one over 100yrs old go on maps and you'll see a flat slab of rooftops lol, without any canopy. I wonder if GW is leafy enough that the possums will live there? GW as about as leafy as an indoor garden.
Before I joined this site I wondered why people lived in dumps like GW/Wheelers Hill when you could live somewhere nice like Ferntree Gully for half the price. Still wondering from a personal perspective!
You know those people who can't wait to get out of Noble/Doveton/Dandenong and move into country Berwick? Well add wheelers hill to that list, I don't care for schools and inconvenience of picking up computer parts. Everytime for the last 20yrs we've been there we've wanted to get out. It's a cluttered rundown cluster of concrete full of wreckless drivers. If you want the schools you'd be a fool to pay millions when you can simply rent in the zone, apply then buy a house in a nicer area for 1/6th of the price.
Same goes for Glen Waverley tbh.. one of the worst carparks in the SE. Wantirna is leagues nicer also. GW, Essendon etc are not "leafy suburbs" lol whoever thinks that has never been to an actual leafy suburb. GW is more a concrete slab with holes drilled into it so 1 little tree can be planted every 10 meters. Artificial green is worse than none, reminds me of the plastic fruit. Not one over 100yrs old go on maps and you'll see a flat slab of rooftops lol, without any canopy. I wonder if GW is leafy enough that the possums will live there? GW as about as leafy as an indoor garden.
Before I joined this site I wondered why people lived in dumps like GW/Wheelers Hill when you could live somewhere nice like Ferntree Gully for half the price. Still wondering from a personal perspective!
Hey James, why don't you tell us what you really think!?
I understand what your saying but don't agree entirely. There are many nice areas of Glen Waverley and think it is a great central location with a great array of amenities. Sure, it is stupidly overpriced in terms of value for money but people are prepared to pay huge figures so good for them.
I do agree than Wantirna South and surrounds are very nice suburbs (I am bias though as my PPOR is in Scoresby) and will show continued steady growth (maybe not so much Wantirna South as its already through the roof).
+1
id say glen the most likely, to be honest, there is nothing fundamentally that can justify the huge price increases
id be very nervous if I was a local buying in there expecting similar growths
I also now more talk to property 'experts' who bought there 5 years ago, sat on it, and now its gone up, who now think they should have their own property tv show
The headline screams "Melbourne records steady clearance rate as Heidelberg Heights home sells for nearly $2 million"
http://www.heraldsun.com.au/realest...nearly-2-million/story-fni0ckoj-1227376111464
The reality is that it is a development site, one of the biggest parcels sold in the area for a long time.
Still, good price for the seller.
http://www.heraldsun.com.au/realest...nearly-2-million/story-fni0ckoj-1227376111464
The reality is that it is a development site, one of the biggest parcels sold in the area for a long time.
Still, good price for the seller.
+1
id say glen the most likely, to be honest, there is nothing fundamentally that can justify the huge price increases
id be very nervous if I was a local buying in there expecting similar growths
I also now more talk to property 'experts' who bought there 5 years ago, sat on it, and now its gone up, who now think they should have their own property tv show
I've been in GW since 2005. The block my folks and I are currently on is about 750m2 close to the Novotel and fetched around $600K in 2005 (considered a fair bit of coin back then for GW).
I'd agree the prices are not justifiable, except the big drawcard for most Chinese people who crave that prized GW high school zone and the fact that they can live like they are still in Shanghai.
For fun, I've developed my own GW "Index" of how much it has been overpriced by comparing it to other suburbs on the line itself.
exactly,
I believe that it wil be a matter of time before it completely plateaus for a few years, as for a drop, maybe a few% at the most
the Overseas money there, there is plenty more where that came from so we wont be seeing 'Mortgagee in Posession' sales at all.....or ever
