Springvale: IP good and bad areas

[quoc]

Hi forum,

wanting to know about your views on IP's or investments in Springvale Vic
Springvale has undergone great growth in last year and wanting to know your views on how you feel it will go?
What are the better areas: I am seeing big differences in prices between close to shops/south of shops closer to heatherton road (higher) and the area closer to the princess highway near mulgrave.

What are your thoughts on the future of Springvale or does it still have a 'bad'name?

 

[willister]

Hi forum,

wanting to know about your views on IP's or investments in Springvale Vic
Springvale has undergone great growth in last year and wanting to know your views on how you feel it will go?
What are the better areas: I am seeing big differences in prices between close to shops/south of shops closer to heatherton road (higher) and the area closer to the princess highway near mulgrave.

What are your thoughts on the future of Springvale or does it still have a 'bad'name?

Hi,

To be blunt and simple but in no means racist, it populated by mainly immigrants mainly from South East Asia. You will not find many other groups demanding or living in this area except maybe investing in shops for rent.

Investment wise I think it's probably too late to invest and the train has left....areas near the Springvale CBD are well into the 900s and some even 1mil....for a decent 700m2+ block within 1km from the Springy CBD.

As it is, it's probably too high....the new station and the removal of the level crossing has helped prices and traffic. Having said that, if you purchased, again not being racist but you'd likely have a limited demographic who would want to live in this area.

 

[propertymanic]

Not sure how melbourne is but I find it an advantage to invest in suburbs populated with south east asian migrants in Sydney. Typically migrants don't want to move away from family/parents- hence increasing demand. I have friends who won't even move 2-3 suburbs away from parents. From Quoc's name I would assume he is also of south east asian background

 

[egga]

Hi forum,

wanting to know about your views on IP's or investments in Springvale Vic
Springvale has undergone great growth in last year and wanting to know your views on how you feel it will go?
What are the better areas: I am seeing big differences in prices between close to shops/south of shops closer to heatherton road (higher) and the area closer to the princess highway near mulgrave.

What are your thoughts on the future of Springvale or does it still have a 'bad'name?

Bought a development site in Noble park last year, have seen some growth.i compare it the Cabrammata, Noble park being the surrounds.

 

[jacbmw]

Hi forum,

wanting to know about your views on IP's or investments in Springvale Vic
Springvale has undergone great growth in last year and wanting to know your views on how you feel it will go?
What are the better areas: I am seeing big differences in prices between close to shops/south of shops closer to heatherton road (higher) and the area closer to the princess highway near mulgrave.

What are your thoughts on the future of Springvale or does it still have a 'bad'name?

Quoc - welcome to the forum!

I am seeing basically <20% rental occupancy as you say closer to Heatherton Road (ie. South of the town hall). This would imply that this higher priced stock is being sustained by the owner occupier purchaser.

Towards the junction of Springvale road and the Princess Highway (near Mulgrave) there are not the higher O/O clusters - so lots of house/rental stock.

To simplify things in my head - I would consider these higher priced O/O enclaves to the south appropriate for a FLIP.

Otherwise for capital growth then this area to the north would perhaps support growth through consistent rental demand as a HOUSE purchase.

Otherwise there is the obvious and very strong preference for Unit + Tenant demand surrounding the train station. Here yields seem reasonable (but not steller @ <5%) but there are patches of >10% public housing around the station area which may effect street appeal in some of the neighbouring blocks.

 

[jpcashflow]

Hi

Hi,

I think Spring vale is a great area at the moment to buy in but beware competition is a bit hectic down there.

Just keep an open mind, yes for the time being a certain community is based in the area and to me this is a great thing to have. It means more people of that community would want to live there.

Springvale and Dandenong are both changing and in the near future 5 to 10 years time a different demographic will enter that space.

Cheers

 

[quoc]

Thank you for all the replies

In regards to the reply from Jacbmw

I am seeing basically <20% rental occupancy as you say closer to Heatherton Road (ie. South of the town hall). This would imply that this higher priced stock is being sustained by the owner occupier purchaser.
- Does this mean that the higher owner occupier area pushes houses up prices and therefore would need to buy at a lower price for a FLIP? I think I am buying at market value however has good 4 bedrooms.

The property has been on the market for >5 months October so alarm bells are ringing.
What are you views on properties on for a long period?

 

[quoc]

In reply to JPcashflow

I think Spring vale is a great area at the moment to buy in but beware competition is a bit hectic down there.
- Yes I am aware that some houses like 7 Rosalie St Springvale sold for 800,000+ but was in a RGZ zone

My potential purchase is a 4 bedroom 530m block for about 560000 near the heatherton rd area (southern parts) but with competition being fierce prices area at the higher end. It is definitely a reno job but as I have said been on the market since October.

 

[Truly Exotic]

have personally visitied springvale for the first time in my life recently for personal stuff, have been keeping an eye on it for a while,

hit up a few agents and picked their brains out

I would also echo some of the sentiments here,

you have to think with your head, not your heart

springvale has gentrified signficantly since hte 80s and 90s, its a safe suburb, but still rough,

the boat has left on most of the good ones, I personally believe that once everyone starts looking for development sites, its pretty much too late to get in,

and yes $700k+ -$1m for any decent large blocks or close to spring vale central,

personally, I dont think the concentration of vietnamese will hurt, as they arent going anywhere in the medium term. Take a look at richmond, once the vietnamese infiltrate an area, they stay!!

 

[Redwood]

Hi forum,

wanting to know about your views on IP's or investments in Springvale Vic
Springvale has undergone great growth in last year and wanting to know your views on how you feel it will go?
What are the better areas: I am seeing big differences in prices between close to shops/south of shops closer to heatherton road (higher) and the area closer to the princess highway near mulgrave.

What are your thoughts on the future of Springvale or does it still have a 'bad'name?

Hi Quoc,

Whether a suburb has a good or bad name should not matter if it is a investment property. As has been identified there are differences in buying closer to the station (on either side) or up Springvale rd towards princes hwy. Why I will say re the bad name is that it is an investment property and with that you choose the suitable tenant to live in your property. I have quite a few in Noble Park - I vet my tenants closely, otherwise it can end in disaster....

As you know with the $2.5b railway upgrade, you have seen the railway go underground at springvale station which is amazing for traffic! that would already be priced in and for me being a keen investor in the noble park area, you have direct access to the city within a 28 km radius with Train and Monash closeby.

Rental yields can be achieved for townhouses and now apartments are starting to kickin to the area as you will see in the central area.

What is the strategy - is it knockdown / rebuild? if yes, look at noble park, we acquired a fantastic development site at a cheaper price than Springvale, and its just down the road....

For me Springvale has great prospects - if not already achieved when you compare the median house price to noble park, but I would stay within that 1km radius of the station which does not take you as far as the corner of princess hwy - again strategy is important for success as yield won't be achieved on a house alone without redeveloping.

Hope that helps

 

[8Faye]

Springvale

Springvale central to Princess Highway area was what I avoided many years ago and regretted not buying when it was 90K.
I think there is still upside as Wheelers Hill and Mulgrave area is booming.
Prices in Wheelers Hill and Springvale central is about same now. Anything in between has to go up.!!