Harris from REIV article said:The median price in Frankston increased 19 per cent from $246,500 to $295,000, in Rowville it increased 21 per cent from $355,000 to $428,000 and in Reservoir the median price increased 24 per cent from $311,250 to $387,000. The combination of high turnover and price growth reflects the high levels of demand for homes in these suburbs. A reason for this market activity can be linked to the affordability factor that these suburbs offer as they all have a median price below the Melbourne metropolitan median.
Allthough I generally don't put much weight on these sorts of stats. or do this sort of analysis with my own residential purchases...if you look at the latest median figures from the REIV, you get a slightly different story.
For Frankston, from Dec '06 to Dec '07, the median has gone from $252,125 to $303,000 - ie. a 20.2% increase.
For Reservoir, over the same time period, the median has gone from $292,500 to $411,500 - ie. a 40.8%.
That's almost exactly double the Frankston increase!
I don't know what the median rental increases have been like in Frankston vs. Reservoir over this time period, but my recent purchase in Reservoir was bought with a lease in place at $190 per week (below the 'market value' of closer to $240 per week rent at the time)...the existing lease has lapsed and the new lease will now be at $290 per week! This is in the space of 3 months !
Both are reasonable suburbs to invest in nonetheless.
Just that Reservoir is 10-14 km from the CBD, compared to the 50km or so to Frankston.
The beauty of inner Melbourne in the last couple of years has been the boom in property values AND rental values...virtually at the same time.
Those who were looking for 'value' (ala keithj) by some arbitrary measure of property being neutrally or positively geared at the time of purchase, have missed out big time.
Anyway, this is slightly off topic, but just thought I'd post this seeing as you were comparing Frankston to Reservoir.
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