Preston, Melbourne

[gailh]

Hey Melbournites,

I'm not planning to buy right now, but what do people think of Preston for medium term growth - is it undervalued at the moment? Have the trendy coffee shops started to open. Prices seem cheap compared to surrounding suburbs. Does anyone know it well?

Gail

 

[Chinny]

Hi Gail,
Not many new coffee shops there unless you count Northland shopping centre. There's a thought, using the coffee standard to determine an up and coming suburb.
Yes, you're right Preston is pretty cheap, especially compared to Heidelberg and Thornbury but watchout for low rental demand.
I knew someone who had an IP there vacant for several months.
I like Coburg more because it adjoins up and coming Brunswick and is still reasonably priced. Sydney road is also very busy, especially on weekends.
Cheers.

 

[Michael Yardney]

Originally posted by gailh
Hey Melbournites,

I'm not planning to buy right now, but what do people think of Preston for medium term growth - is it undervalued at the moment? Have the trendy coffee shops started to open. Prices seem cheap compared to surrounding suburbs. Does anyone know it well?

Gail

Gail
Popularilty has moved its way up High St - first Clifton Hill was popular with rising prices and then Northcote. Thornbury has not done too well and Preston is even urther out. Our property management department has a few properties under management there and demand is much less in Preston than the suburbs closer to town.
People don't seem to wake up in the morning and say "I want to live in Preston."
I know of a number of large develpments in Preston that have are on the drawing board, one of which has been sold out to investors. I think these will test the rental market.
I think you could find better areas for capital growth

 

[djones]

I was thinking about the same area but bit further out esp: Greensborough, montmornecy. The reason iam thinking there is that house quality is good, and so is the rental yield bit better then other melb. suburbs.

Your thoughts.