The heat in Melbourne's Inner City Property Market continues.
- Thread starter jingo
- Start date
Has anyone been attending auctions in the Inner East lately?
I've noticed that the quoted price ranges seem to be coming down a bit but I'm wondering how this correlates with sales.
I'm assuming that agents are quoting a bit lower to keep interest up in their properties, but intuitively I think that prices have come off the boil but are still ticking along - maybe 5% less than the prices we were seeing at the peak?
This is all speculation as I have not been to an auction for a while. Reported clearance rates seem ok.
Anyone got any opinions?
Cheers
I've noticed that the quoted price ranges seem to be coming down a bit but I'm wondering how this correlates with sales.
I'm assuming that agents are quoting a bit lower to keep interest up in their properties, but intuitively I think that prices have come off the boil but are still ticking along - maybe 5% less than the prices we were seeing at the peak?
This is all speculation as I have not been to an auction for a while. Reported clearance rates seem ok.
Anyone got any opinions?
Cheers
Belu, is this happening at a large number of auctions or is there not much going to market?
What I am getting at is: Does this look to you like a downturn in prices across an appreciable number of properties? Or is it just a quiet market with not much stock and not much interest in buying what there is?
What I am getting at is: Does this look to you like a downturn in prices across an appreciable number of properties? Or is it just a quiet market with not much stock and not much interest in buying what there is?
From my own observation and talking to others the slow down seems accross the board with auctions with less interest, at times no bidding at all, properties just taking a lot lot longer to sell, and as observed on this forum properties failing to sell so being taken off the market and being placed back into the rental pool.
Its not that hosuing demnd is not there. Its just there for rentals not sales from my understanding.
Its not that hosuing demnd is not there. Its just there for rentals not sales from my understanding.
I am talking about apartments over units or villas, the villas seem to be doing OK (not great, say 1-2 bidders instead of 3-5 like it would have been a few months ago) but apartments not really that good.
One I know of had a reserve at auction of $xxx, passed in on single vendor bid of $xxx - $40k and is now on the market at $xxx - $50k and I am looking to offer $xxx - $65k.
One I know of had a reserve at auction of $xxx, passed in on single vendor bid of $xxx - $40k and is now on the market at $xxx - $50k and I am looking to offer $xxx - $65k.
well, I hope that prices will drop a bit further so I can get into the market....
someone mentioned yields of low 4% to 5%.... isnt this a bit high,
Properties I was looking at about 6 months ago ( iknow the market has changed in a few months ) yield was sometimes as low as 3%, 4% was quite rare... or was this just the surburbs I was looking at?????
someone mentioned yields of low 4% to 5%.... isnt this a bit high,
Properties I was looking at about 6 months ago ( iknow the market has changed in a few months ) yield was sometimes as low as 3%, 4% was quite rare... or was this just the surburbs I was looking at?????
well 6 months ago,
I was looking at box hill vic, units for about $330k -$350k we renting out at about $230-$240 per week, =3.7% not bad
I also attended a few auctions in hawhtern Expected price was about High $300s, I predicted abut $430k, sold for $450-530k,
the $530k was only renting at about $250 per week as well, so that is 2.4% which is DISMAL....
I wonder what it would be worth now!
I was looking at box hill vic, units for about $330k -$350k we renting out at about $230-$240 per week, =3.7% not bad
I also attended a few auctions in hawhtern Expected price was about High $300s, I predicted abut $430k, sold for $450-530k,
the $530k was only renting at about $250 per week as well, so that is 2.4% which is DISMAL....
I wonder what it would be worth now!
3.7% yield for a unit in Box Hill is shocking. Does the unit have big land content? Could you do it up to improve rental yield to 5% (i.e. 330 to 350 pw)? As an investor my aim is 5% yield for unit, and 4% for houses.
The properties in Hawthorn, I presume the prices of $450-530k are units? Sounds like either the place was bought by OO who got scared of missing out, or novice investors who absolutely overpaid.
I agree with Lake. Those numbers are awful. If its that negatively geared you would want to be 150% sure you would enjoy enough growth to offset it plus some! If that was all I could find I would just keep saving. In this market there are plenty of opportunities to buy undermarket so buying at market is not a smart option to take.
the box hill ones were units with land value, but not much
the hawthorn ones were also units, with a fair bit of land component.....
yes, they were OO, I was a bit shocekd by this,
but 6 months - 8months ago was probably the absolute peak so I wouldnt be surpiresed if the $530k one could be bought for $380-$400k...
thats my 2c
the hawthorn ones were also units, with a fair bit of land component.....
yes, they were OO, I was a bit shocekd by this,
but 6 months - 8months ago was probably the absolute peak so I wouldnt be surpiresed if the $530k one could be bought for $380-$400k...
thats my 2c
Open for Inspection - The crowds come...
Yesterday I thought I would take a quiet look at a few properties in an inner suburb in Melbourne. Earlier in the week I had received an email from an agent I had been in contact with last year. As we all know, emails and text messages from agents usually indicate that times are quiet.
I was unpleasantly surprised to find at the three inspections I attended that the dwellings were over run by many others! The weather was absolutely dreadful too - so I suspect the people looking were potential buyers and not passersby wanting to have a sticky beak.
On a superficial level the people inspecting the properties didn't look like first home buyers. (Perhaps one or two, but not the majority). I suspect a lot of them were investors.
Have others noticed large numbers of people at open for inspections in Melbourne over the weekend, or perhaps it was apparent only in the location I was in and the 3 properties I happened to inspect??
Yesterday's clearance rate in Melbourne was 67%. Could this level rise over the coming weeks?
I would be interested in other's observations.
Regards Jason.
Yesterday I thought I would take a quiet look at a few properties in an inner suburb in Melbourne. Earlier in the week I had received an email from an agent I had been in contact with last year. As we all know, emails and text messages from agents usually indicate that times are quiet.
I was unpleasantly surprised to find at the three inspections I attended that the dwellings were over run by many others! The weather was absolutely dreadful too - so I suspect the people looking were potential buyers and not passersby wanting to have a sticky beak.
On a superficial level the people inspecting the properties didn't look like first home buyers. (Perhaps one or two, but not the majority). I suspect a lot of them were investors.
Have others noticed large numbers of people at open for inspections in Melbourne over the weekend, or perhaps it was apparent only in the location I was in and the 3 properties I happened to inspect??
Yesterday's clearance rate in Melbourne was 67%. Could this level rise over the coming weeks?
I would be interested in other's observations.
Regards Jason.
I went to the auction for this Kew property yesterday and had been at the OFI's previously. They were well attended and so to was the auction. It was held before the downpour arrived admittedly. A family member was doing some due diligence for a PPOR. Sold for $1million.
I was doing some DD for comp prices for a property that i have been renovating. This Moonee Ponds property was a couple blocks away. The one OFI that I attended was packed and was sold at auction for $887k. Three losing under bidders. Was on the market to be sold at $825k. Marketed at $770 - 820k.
Do these technically fall in under inner city Melbourne market, not sure. I am less familiar with Kew's prices, because I can't afford anything there, but Moonee Ponds prices are strong. Its always difficult to retrospectively say how much this would have been worth approximately 12 months ago, but at the most it would have been worth $770k
Clearance rates have been pretty solid in the high 60's for some months now. Given the more relatively steady interest rate environment, relatively confident consumer and ok economy I doubt it will reduce much. Higher though, not sure.
I was doing some DD for comp prices for a property that i have been renovating. This Moonee Ponds property was a couple blocks away. The one OFI that I attended was packed and was sold at auction for $887k. Three losing under bidders. Was on the market to be sold at $825k. Marketed at $770 - 820k.
Do these technically fall in under inner city Melbourne market, not sure. I am less familiar with Kew's prices, because I can't afford anything there, but Moonee Ponds prices are strong. Its always difficult to retrospectively say how much this would have been worth approximately 12 months ago, but at the most it would have been worth $770k
Clearance rates have been pretty solid in the high 60's for some months now. Given the more relatively steady interest rate environment, relatively confident consumer and ok economy I doubt it will reduce much. Higher though, not sure.
Doncaster near the Doncaster park + ride is selling fine.
Fewer properties are sold at auctions. Those passed in are sold soon after at close to asking price (~5% off).
This house on the main road with high speed traffic and noise, asking 1.095m, sold 1.035m.
Fewer properties are sold at auctions. Those passed in are sold soon after at close to asking price (~5% off).
This house on the main road with high speed traffic and noise, asking 1.095m, sold 1.035m.
well-presented,renovated properties seem to sell well in inner city areas
I have been looking at properties in the seddon,yarraville, ascot vale,flemington,kensington,moonee ponds area in the last 6 months for a family member wanting to buy and anything that is good sells well at auction or before auction. so if you see a property to renovate, dont worry if you think market is flat, if you buy and do a good job renovating , there will be buyers who will want to buy it and competition will mean a good price for you
what I mean by "good" is a property that presents beautifully, is not tizzy or cluttered ,has had a renovation that blends in well with the rest of the house if it is a period house, and any additions don't look "tacked on" . Some renovations would probably have cost a lot but there are buyers who want to live close to the city and cant afford Richmond,Carlton, Albert Park and who want something already renovated. There seem to be young couples who do not want to renovate , they want a really modern kitchen and bathroom and outdoor entertaining area....
but to all the renovators out there, here are some things i have overheard at inspection that they dont want in a property to buy...
a small living area that has no room(wallspace) for a big screen TV..
spa
outdoor laundry
here are some properties that have sold before auction recently
http://www.realestate.com.au/property-house-vic-kensington-106895324
http://www.realestate.com.au/property-house-vic-seddon-106725307
here are some that sold well at auction;
http://www.realestate.com.au/property-house-vic-seddon-106734200
http://www.realestate.com.au/property-house-vic-flemington-106686938
http://www.realestate.com.au/property-house-vic-kensington-106615424
I have been looking at properties in the seddon,yarraville, ascot vale,flemington,kensington,moonee ponds area in the last 6 months for a family member wanting to buy and anything that is good sells well at auction or before auction. so if you see a property to renovate, dont worry if you think market is flat, if you buy and do a good job renovating , there will be buyers who will want to buy it and competition will mean a good price for you
what I mean by "good" is a property that presents beautifully, is not tizzy or cluttered ,has had a renovation that blends in well with the rest of the house if it is a period house, and any additions don't look "tacked on" . Some renovations would probably have cost a lot but there are buyers who want to live close to the city and cant afford Richmond,Carlton, Albert Park and who want something already renovated. There seem to be young couples who do not want to renovate , they want a really modern kitchen and bathroom and outdoor entertaining area....
but to all the renovators out there, here are some things i have overheard at inspection that they dont want in a property to buy...
a small living area that has no room(wallspace) for a big screen TV..
spa
outdoor laundry
here are some properties that have sold before auction recently
http://www.realestate.com.au/property-house-vic-kensington-106895324
http://www.realestate.com.au/property-house-vic-seddon-106725307
here are some that sold well at auction;
http://www.realestate.com.au/property-house-vic-seddon-106734200
http://www.realestate.com.au/property-house-vic-flemington-106686938
http://www.realestate.com.au/property-house-vic-kensington-106615424
Melbourne then and now
Hi Everyone
This is a blast from the past, the last very hot/booming Melb market around 2007/2008, boom started with inner properties skyrocketing and record auction sales, followed by the ripple effect to middle ring etc and then a couple of years where the Melb market fell back and inner city was hammered.
I have read many posts where inner city market is once again rising, so has it generally superseded prices of 2007/2008 and continuing to rise?
Do you think we will see the ripple effect/price rises to middle ring??
Would be interested on your thoughts, in particular those on the ground, watching the market
MTR
Hi Everyone
This is a blast from the past, the last very hot/booming Melb market around 2007/2008, boom started with inner properties skyrocketing and record auction sales, followed by the ripple effect to middle ring etc and then a couple of years where the Melb market fell back and inner city was hammered.
I have read many posts where inner city market is once again rising, so has it generally superseded prices of 2007/2008 and continuing to rise?
Do you think we will see the ripple effect/price rises to middle ring??
Would be interested on your thoughts, in particular those on the ground, watching the market
MTR
Hi Everyone
This is a blast from the past, the last very hot/booming Melb market around 2007/2008, boom started with inner properties skyrocketing and record auction sales, followed by the ripple effect to middle ring etc and then a couple of years where the Melb market fell back and inner city was hammered.
I have read many posts where inner city market is once again rising, so has it generally superseded prices of 2007/2008 and continuing to rise?
Do you think we will see the ripple effect/price rises to middle ring??
Would be interested on your thoughts, in particular those on the ground, watching the market
MTR
That's probably a pretty big misrepresentation of what happened.
1. Inner city and inner east prices sky-rocketed in 09/10.
2. There was a slight dip in 11/12.
3. Current inner city/inner east prices are again well above 09-12 and competition is generally intense, especially among the inner city ring, ie the 6-7 suburbs surrounding the CBD (Carlton, Nth Melb, Parkville, East Melb etc) and suburbs adjacent to those in the east (eg Richmond, Hawthorn, Kew etc)
4. This "boom" has flowed on to some outer east areas (eg Box Hill) but generally has not seen the poorer areas run yet (eg unheard of suburbs like Forest Hill, or western fringes like Werribee, Altona etc)
In short, the market so far is only strong enough to support a rampant run for prices of good properties in good areas in good locations. Any property missing any of those 3 features may still struggle, pass in, not attract sufficient interest.
Which of course leads the interesting the question, do you take the risk now and buy in those middle ring areas? Personally I never invest in those suburbs because, as this market as proven, good locations close to CBD will always flourish ahead of the rest of the greater Melbourne market and flourish alone if it needs to, but if things pick up sufficiently across the broader market maybe those places are at the bottom now and one could enter.
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Delta your obviously very cluey but sometimes you need to take the blinkers off
Altona didn't see a boom?
Pretty sure where I live prices practically doubled between 04 and 10, come off a fair bit since then though
Bentleigh, Prices have probably tripled in the same period
A rising tide floats all boats , unless it's a fringe suburb with plenty of land supply
Yes some will be floated better than others but as you can see by the bentleigh example there are no hard and fast rules to what will be the best investment
