Reaching new heights - Inner Melbourne

Is anyone monitoring suburbs in Inner Melbourne at the moment? I attended an auction in North Melbourne yesterday. 2 bed fully renovated terrace with OSP. Originally quoted at $480+. Fetched $565,000!!!::confused:

A couple of weeks ago I attended another auction. Also a 2 bed fully renovated terrace with OSP. A little smaller than the one mentioned above, and not as well laid out. Fetched $527,000.


What are other's observations of the inner suburbs in Melbourne. Are we experiencing a rising market in areas such as North Melbourne, Brunswick and Carlton North?

If so, do you think this can continue, or have some over enthusiastic people bid the properties above their true value??

I look forward to reading your replies.............
 
Hi Jingo

Do you think Coburg is also experiencing the same, I have been priced out of inner city areas you mentioned.

A couple of BA I have spoken to have told me that inner city market is very strong and that competition is tough. One particular BA advised that at the moment they are not able to purchase a bargain as such.

This seems to be the same story in Brisbane, areas within 8-10 Km.

Cheers.
 
Jingo,

IMHO it can be summed up in one word........................

Underquoting.......which although illegal in Victoria seems to be well alive and flourishing.

"Oh Mr Enzo what are we going to do with you".............???


ciao

Nor
 
hello,

even though underquoting maybe occurring these are still "new" prices and I am sure people would be very happy with the gains over the last 3 years for inner city property

given that all "commentators" claim a flat or falling market

thankyou
myla
 
Agree entirely................

But making sure that the property is underquoted makes it look just that little bit *boomier*................no???..............of course not.

REIV should be taking a good hard look at themselves.

ciao

Nor
 
Yes inner Melbourne is strong, it's not your imagination :) It's been strong since early 2006. Given the current economic conditions I can't see the trend changing anytime soon.

As for underquoting - yeah it happens, but who cares, it takes just one weekend to figure out the % uplifts to apply to the quoted prices so I don't understand what the fuss is about.

good luck :)
 
Yeah it is definetly strong, where I have been looking.

2 Auctions in South Yarra - 2 bedder appartments with car parking - 12/13 in the block. 1 Quoted for $400plus sold for $530K, another quoted for $450-500 - sold for $592K.

2 bedder with parking in Armadale - quoted $330K plus sold at auction for $450K.

They may be underquoted a bit but the prices do seem to be getting higher - so I do think we are in a rising market. And there seems to be a lot turning out at the auctions.
 
2 bedder with parking in Armadale - quoted $330K plus sold at auction for $450K.

Underquoted yes, but, prices do seem to be moving here. Not sure if this is a transient rise, and whether it will be more sustained in the new financial year.

GSJ
 
Jingo,

IMHO it can be summed up in one word........................

Underquoting.......which although illegal in Victoria seems to be well alive and flourishing.

"Oh Mr Enzo what are we going to do with you".............???


ciao

Nor

You're right about that!!! Just after I attended the auction on Saturday I went to an open for inspection of a similar house, although not as well renovated, and not of the callibre of the one that just sold. The agent had this property listed originally at $410,000+.

Now, I happened to ring the agent the night before (Friday evening) enquiring about this particular property. I said to her "Exactly how much does the vendor want for this property?" She said "Oh, it will sell for around "$450,000". Well, was it a different story on Saturday when I met up with her at the inspection!!! Her comments were "Based on the sale of the house up the street, I would expect this to sell for high $400'00's at the least!".

mmmmmmmmmmmmmmmm.................................
 
Hi Jingo

Do you think Coburg is also experiencing the same, I have been priced out of inner city areas you mentioned.

A couple of BA I have spoken to have told me that inner city market is very strong and that competition is tough. One particular BA advised that at the moment they are not able to purchase a bargain as such.

This seems to be the same story in Brisbane, areas within 8-10 Km.

Cheers.

Hi MTR,

I haven't been following Coburg, so I can't help you. I do know that Brunswick is moving though, and Coburb is nearby.

Interesting comments from your BA.
 
I've started looking at Heidelberg in the last 2 weeks and hope to start making offers in the next month or so.

Yesterday:

2brm townhouse quoted at 330k+. Sold at Auction for 400k. Had about 5 genuine bidders and about 30-40 people attend the auction.

2brm unit quoted at 300k+. Sold at auction for 372k. Had 3 bidders hanging in until 360k+ and about 30 people at the auction. I spoke to some of the neighbours who attended. One of them bought the same style unit in similar condition for 312k about 6 months ago.
 
Is anyone monitoring suburbs in Inner Melbourne at the moment? I attended an auction in North Melbourne yesterday. 2 bed fully renovated terrace with OSP. Originally quoted at $480+. Fetched $565,000!!!::confused:

A couple of weeks ago I attended another auction. Also a 2 bed fully renovated terrace with OSP. A little smaller than the one mentioned above, and not as well laid out. Fetched $527,000.


What are other's observations of the inner suburbs in Melbourne. Are we experiencing a rising market in areas such as North Melbourne, Brunswick and Carlton North?

If so, do you think this can continue, or have some over enthusiastic people bid the properties above their true value??

I look forward to reading your replies.............


I currently live in Adelaide and plan on purchasing an inner city property within the next 3 months.

I haven’t had a chance to attend any auctions personally however I do try and track the sales. I generally keep a copy of the Saturday Age and as the properties get auctioned off I compare the advertised price to the final auction price using www.homepriceguide.com.au .

Currently I’m looking for a 2 bedroom terrace that needs a renovation, small courtyard with or without OSP.

The suburbs I have been looking at are.

Flemington, Kensington, West Melbourne
South Melbourne, Port Melbourne, South Yarra
Richmond, Collingwood, Prahran

From what I have seen some properties are under quoted by as much as $100k.

Ideally I would like to purchase something in the Eastern suburbs for about $500,000 but I’m willing to go a little extra to secure something.

My observations are that some of the renovated properties fetch a good premium over say buying and doing it your self.
 
2 bedder with parking in Armadale - quoted $330K plus sold at auction for $450K.

I belive the market in these areas is already up %15+ this year.......... last week i couldn't put an offer in on a private sale (due to sec 32 not ready)and 10 mins ago i received a call from the estate agent saying that because of so much interest they are taking offers at and over the asking price and will make a decision at 4pm tomorrow. I have decided i will not be one of them at that price, it will be interesting to see if i get a reminder call.

I engaged Wakelins last Oct and have only had a crack at one IP (auction), it's a bit disappointing to still be waiting but then my criterier is quite tight:rolleyes:
 
I engaged Wakelins last Oct and have only had a crack at one IP (auction), it's a bit disappointing to still be waiting but then my criterier is quite tight:rolleyes:

How are you finding them emu?? I nearly engaged them in February, but decided to do it myself. Have since purchased in North Melbourne.
 
According to residex Melbourne cracked the $400k mark in the March quarter.

When residex/reiv release their suburb by suburb stats in the next week or 2 it will be interesting to see how the inner burbs have performed, I suspect it will be well in excess of the overall quarterly figure of 3%. :)
 
How are you finding them emu?? I nearly engaged them in February, but decided to do it myself. Have since purchased in North Melbourne.

You have done yourself a favour jingo, time in the market is better than timing the market.

There is better value in sydney at the moment but my land tax bill will rise too much so i am persisting with the melb market.

Wakelin needs to improve their agent-client feedback because it's crap, agents leave and you won't hear about it for weeks untill someone rings you to say that they found you a potential buy, but they wouldn't have a clue what your critierier is( don't BA's share their information before leaving).

Anyway i have spoken to monique wakelin about this and we will see what happens.
 
You have done yourself a favour jingo, time in the market is better than timing the market.

There is better value in sydney at the moment but my land tax bill will rise too much so i am persisting with the melb market.

Wakelin needs to improve their agent-client feedback because it's crap, agents leave and you won't hear about it for weeks untill someone rings you to say that they found you a potential buy, but they wouldn't have a clue what your critierier is( don't BA's share their information before leaving).

Anyway i have spoken to monique wakelin about this and we will see what happens.

Thanks for the feedback Emu,

I know they are very good, but it sounds as though its taking a while to find you a property. Can you get out of the contract now and do it yourself??

Regards Jason.
 
Yes jason as long as they were not involved in sourcing the prop you can go it alone.
The upfront fee (under 1k)is the only fee payable until you buy a prop sourced by them.............in my case the upfront fee has well and truly been well spent.
 
Yes jason as long as they were not involved in sourcing the prop you can go it alone.
The upfront fee (under 1k)is the only fee payable until you buy a prop sourced by them.............in my case the upfront fee has well and truly been well spent.

Oh fair enough. I'm sure they will find you a really good one. I know their criteria is very specific and you will reap the rewards of seeing their specialised advice in years to come. I am seriously thinking of engaging them when I look for our next one!! (Mind you, I said that last time too, and a good deal just came along that I couldn't say no to!!).

Regards Jason.
 
Tell me about it!

I just purchased a 2 bedroom apartment in Toorak. Initial estimate $380k+. This was revised to $420k+ two weeks before auction. I bought it for $592k.
 
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