Ringwood, VIC - CG Gain Prospects

T

Triton

Median prices in Ringwood have gone up almost 20% over the past 12 months according to RPdata
http://www.realestate.com.au/neighbourhoods/ringwood-3134-vic

Lot of this no doubt can be attributed to the massive developments that are occurring and will be occurring over the next couple of years

http://www.maroondah.vic.gov.au/4415.aspx

I would like your thoughts on whether there is still potential for further capital gains in the next 5 years when all the development is finished? Do you think it is too late to buy a small house or large unit (450-500K, 200-250sqm, 2,1,1) in Ringwood given how much the price has moved? In your opinion, are there better areas from a capital gains perspective wise in Melbourne?

Look forward to your thoughts.
 
Ringwood and it's surrounding suburbs have moved a lot. But so has a lot of other suburbs. I wouldn't be banking on these short term gains now, pretty much sailed. Development sites are still hard to get.

Medium term I would say its great. I'm active there.

Oscar
 
A lot of the outer east has moved 15% - 20% in the last 12 months. I wouldn't attribute all of it to new developments. It's questionable though if this will be repeated over the next 12 months but I think the general area is still going to see reasonable gains.
 
I've received a leaflet stating that the government going to spend 12 million on Ringwood Secondary overtime. 1.2 million now. Don't know if those numbers are significant but this will boost the school. Good schools means more demand. I have been to few auctions and the prices they go for are crazy.
 
This is basically just the effect of overflow from Surrounding suburbs along the train line.

2002 This was Camberwell and Balwyn (despite not being on train line).
2004 This was Box Hill.
2006 Blackburn.
2007/2008 Mitcham and now Ringwood.
 
If you're price sensitive and want to buy a house/villa rather than an apartment Ringwood is a reasonable option when compared to other suburbs that are 20-25km from the CBD.

Ringwood has a large shopping complex, good transport options with bus, train and of course the Freeways and Highways. There's continuing gentrification of old stock and reasonable population growth/immigration numbers.

It's definitely not one of my top picks but with that said its infrastructure is much more appealing than surrounding suburbs like Warranwood or Vermont South for example.

Also, this is not a suburb you really want to be purchasing apartments in right now.
 
Echo the sentiments of others. I looked closely at Ringwood 6 months ago - for me the housing market is overpriced and now a significant apartment stock list close to the shopping centres. I saw apartments at similar prices to Hawthorn which was ridiculous when you consider the distance.

There are opportunities in surrounding suburbs - you just have to find them

Cheers, Ivan
 
Villas in Ringwood tanked in prices 2-3 years ago. This recent rise is just a correction from that - not a sudden growth without justification. This surge is just a re-balance and trickle from what is occurring in Doncaster East / Donvale / Mitcham / Blackburn etc.

At the bottom of the dip you could grab a 2 bed villa for 280-300k, now they have bounced back again to the 340-380k range. There is a bit more puff and they might go to 400-420k into next year if you're lucky.

Long term Ringwood will be fine, and it particularly presents a lot of pluses for people down sizing, don't want to pay the prices closer in but still want to live in hub where you can literally walk everywhere you need to visit.
 
Thank you all for the replies. My thoughts are pretty much in-line with the general consensus here. Anyone here have an intimate knowledge of the area and would like to share what are some of the better streets?

Jake, which suburbs do you think present better value? Western? North Eastern?
 
Some general points (IMHO).

Are surrounded by;
Station Street - Bedford Road
Heathmont Road (Probably don't go too close to the railway lines)
Cantebury Road
Wantirna Road

Also, stay away from the big power lines (obviously)

Personally, I don't like north of Maroondah Highway (e.g. around East Land) cos it's very busy.

Personally, I don't like west of Wantirna Road cos it's too close to industrial areas/look.

Also, Ringwood East is good too.

If you have kids, I'd try to stay within the Ringwood Secondary School Zone.
 
Triton said:
Jake, which suburbs do you think present better value? Western? North Eastern?
Click to expand...

It depends on how you define "value".

My thoughts are that value is only truly found in property that appeals to the broad spectrum of the market, that you can sell with multiple interested parties at any time in the market.

If you define value in purchasing price alone, as some do, then you can only compare like for like and have the goal of buying something below what similar properties are selling for in that area. Therefore, comparing East vs West is a nonsensical debate (which has been raging for years I might add).

With that being said, as far as general areas are concerned, the West is restricted somewhat with the way it is perceived by Melbourne's population as a whole. As such I don't think the West is as valuable in quality (desirability) as the North Eastern suburbs (this again differs to which suburbs we are encompassing in the selection). This may change in time and it's up to you and your appetite for speculative investments with properties in developing areas.

As I'll recommend to all, make sure you concentrate on your goals, and limitations within a set plan to identify areas, and then focus on "value" in either context on a case by case basis.
 
As other posters have noted there are many reasons Ringwood is a strong suburn bow and into the future. Main reason is it is a central hub for rail and freeway enabling quick access to the CBD as well as continued development at Costco/Eastland etc

They key to growth here (I live there) is to close to the station and Ringwood Secondary.
The school is highly sought ater and there will continue to be a premium on houses in the zone.
This area will also be treated favorably for higher density development in the future. If I was buying I'd be looking for a development block for future growth. You wont get any yield worth noting.

Cheers,
Dwight
 
We are fortunate enough to have 2 IPs around Heathmont/Ringwood border and the ship has probably sailed, for now.

The last 2 valuations we got for both in April were very handy.

Alot of people we know looking at the Ringwood area are being pushed out to Croydon, Croydon North, Croydon Heights and Mooroolbark.

I would stay away from units in Ringwood and Heathmont. Too much stock coming/about to come onto the market.

Looking forward to them finally doing something with Ringwood train station.
 
It's amazing I understand Ringwood (a better dandenong?) but don't understand Croydon it is an absolute hole. Berwick is a real jewel (lived here for 16yrs) and is only 8km further out than Croydon and is far better placed for transport to the cbd.

It's the only suburb on a major trainline and in the heart of a corridor that has the atmoshpere of a "bush suburb". The best part about Berwick is all the infastructure is offset to Narre Warren and the clyde rd casey south sprawler areas keeping the estates rather safe and quiet. The Edrington and Olde Berwick area's are completely offset to all the development crap that starts on the other side of the freeway down clyde rd. good 2km buffer thank god (I live here and "eden rise" and "casey central" have almost as much noise pollution as inner suburbs). Lot of people like renting here too (which some here would find surprising).

The thing most people don't understand about this suburb is it's infastructure, the town is 1800's and commercial riff raff is wanted to be 2 minutes down the road (at either westfield or eden rise, your choice). The village street has many top cafes/resturants (the local pizza shop even won the good food and wine expo!!).

I don't think the Chinese will go out as far as Croydon? I've seen many in Berwick but I'm not holding my breath no one seems to like how far away we are. It is frustrating though as all the other bush suburbs are usually "north" of their respective corridors.
 
I've been encouraged to contemplate an old 2 bedroom unit in Ringwood/East. However given all this recent development and growth with the possibility of oversupply wouldn't one of those old standing weatherboard houses on a 700sqm+ block be the safer option?

Or would oversupply only affect the 1bdrm studios/apartments/community laundromats and not the units I wonder?

I've heard of risk in buying in the wrong area's in Ringwood... there's a lot of variation on where you buy in those suburbs apparently. But as always do your homework and if you know the area this will probably be a good thing!!!
 
I like Ringwood and have purchased my first investment property (had one and sold it 6yrs back). It's an OTP 2br ground floor apartment with nice size courtyard. Initially I stayed away from OTP due to the belief I will overpay but what I was seeing is some established apartments going for $400k plus and one in Nelson Street selling for $455k which was a strong price. My property is the new development on Browns Avenue and I got it for way under $455k and they are both comparable in size and finishes etc as I put an offer in on the Nelson property.
Ringwood has a lot to offer with easy access to the Eastern freeway, East land shopping center (in the process of doubling in size) a train station that is serviced by two lines (Lillidale and Belgrave) Schools and local employment. There are a lot of buyers now gravitating to Ringwood simply because suburbs such as Box Hill, Blackburn, Mitcham, Doncaster, etc are now to expensive so Ringwood is now becoming attractive especially with all the infrastructure it has in place. I live in Blackburn North myself and over the years have seen the suburb improving in reputation. The one major eye sore are the shops along Maroondah Hwy near the Station. I believe the Eastland shopping center expansion will go right up the the road with an overpass to the station and the shops at street level becoming part of East land and hopefully turned into cafes etc. What ever happens it'll be better than was/is there now.
 
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