The heat in Melbourne's Inner City Property Market continues.

[tayser]

North Melbourne also attracts very high yielding tenants as well... The Royal Children's, The Royal Melbourne & The Royal Women's Hospitals are all on the other side of Flemington Rd.

What's interesting about that place which jingo is talking about is that it's nearer the commission flats & boarding houses. As a previous tenant in a flat in the area (I'd kill to go back but there is a severe lack of rental stock - like in the rest of inner Melbourne!) I wouldn't live up that end - the best parts of North Melbourne where, dare I say a landlord would have no trouble renting any joint out, is anywhere East of Curzon/Harker Sts.

 

[jingo]

North Melbourne also attracts very high yielding tenants as well... The Royal Children's, The Royal Melbourne & The Royal Women's Hospitals are all on the other side of Flemington Rd.

What's interesting about that place which jingo is talking about is that it's nearer the commission flats & boarding houses. As a previous tenant in a flat in the area (I'd kill to go back but there is a severe lack of rental stock - like in the rest of inner Melbourne!) I wouldn't live up that end - the best parts of North Melbourne where, dare I say a landlord would have no trouble renting any joint out, is anywhere East of Curzon/Harker Sts.

Hi Tayser,

Yes, this is all true. It makes the result that more astounding! Although Erskine street is considered to be a vey good street in the area. The commission flats are not visible from the street, but you are right in saying that they are fairly close by!

As prices continue to increase the yields have dropped somewhat. I guess this will either be re-balanced by rental increases or a levelling of property prices.

Regards Jason.

 

[DavidMc]

Wow... nice place but that does seem at least $50k over what I would have thought as well.

 

[Bandita]

Yes, Inner Melbourne market still very strong (84% auction clearance again) - this 2-bed unit in Armadale was quoting "in the vicinity of $280k" (last year an unrenovated unit in the block sold for $265k and renovated for $330k)

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=14927908&s=vic&tm=1188737359

Sold for $425k! That's over 50% higher than quoting price!

There's acutally 2 more in the block going for auction in the next couple of weeks...be interesting to see what happens....

Cheers,
Jen

 

[Twitch]

I went to the auction for this single fronted Victorian in Hawthorn on Saturday. It was nicely renovated so I thought it would go for $1m, but it went for $1.175m. The reserve was apparrently $920k. Prices seem to have jumped a lot in the past 5 or 6 months.

 

[JIT]

Yes, Inner Melbourne market still very strong (84% auction clearance again) - this 2-bed unit in Armadale was quoting "in the vicinity of $280k" (last year an unrenovated unit in the block sold for $265k and renovated for $330k)

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=14927908&s=vic&tm=1188737359

Sold for $425k! That's over 50% higher than quoting price!

There's acutally 2 more in the block going for auction in the next couple of weeks...be interesting to see what happens....

Cheers,
Jen

Very small looking 2 bedder. Based on recent sales I would have expected something like 380k-390k at best. Not sure what the agents were thinking when they quoted 280k??!!

When I first saw it advertised I thought there must be some major problem underlying it eg. to do with the BC or something else, for them to quote such a strangely low price.

Apartments in Armadale really started moving around Feb/Mar this year, and I think some agents are probably genuinely surprised at some of the prices being acheived - I certainly was. I mentioned in a previous thread to look at Glen Huntly and I think Carnegie too, as they seemed relatively cheap compared to Armadale at that time, but these suburbs may have already started to move now.

I'm also interested to see what prices the other units in this block get.

GSJ

 

[Bandita]

Very small looking 2 bedder. Based on recent sales I would have expected something like 380k-390k at best. Not sure what the agents were thinking when they quoted 280k??!!

When I first saw it advertised I thought there must be some major problem underlying it eg. to do with the BC or something else, for them to quote such a strangely low price.

Apartments in Armadale really started moving around Feb/Mar this year, and I think some agents are probably genuinely surprised at some of the prices being acheived - I certainly was. I mentioned in a previous thread to look at Glen Huntly and I think Carnegie too, as they seemed relatively cheap compared to Armadale at that time, but these suburbs may have already started to move now.

I'm also interested to see what prices the other units in this block get.

GSJ

HI GSJ,

Yes, they are small 2-bedders (we almost bought the unrenovated one at $265k last year - just didn't have that finance approval yet so lost it with the subject to finance clause - grrrrr!!!! - aren't we kicking ourselves now?!? )

The only major issue with the block is there aren't internal laundries in the apartments - you can see they've put the WM in the kitchen in this one.

I'm suprised with the $425k as well - I thought a good price would be $350k, expected it could go to $370-$380k (but they're small!).

Glen Huntly is on the move as well.....a renovated unit in this block (with a courtyard) sold in the low $300k's last year.......this unit in the same block (no courtyard, but small balcony) sold for around $387k a couple of weeks ago.

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=29150158&s=vic&tm=1188784671

Cheers,
Jen

 

[JIT]

HI GSJ,
The only major issue with the block is there aren't internal laundries in the apartments - you can see they've put the WM in the kitchen in this one.

Yes, the old 'european laundry'! Hasn't put off buyers this time.

GSJ

 

[jingo]

Wow... nice place but that does seem at least $50k over what I would have thought as well.

Hi David,

Yes the house was nice. I was honestly expecting it to achieve around $650-670. I am not sure how much higher prices can go??? I guess when people really want something, they are prepared to pay almost anything to get it!

Regards Jason.

 

[jingo]

HI GSJ,

The only major issue with the block is there aren't internal laundries in the apartments - you can see they've put the WM in the kitchen in this one.

I'm suprised with the $425k as well - I thought a good price would be $350k, expected it could go to $370-$380k (but they're small!).

Jen

Wow, a flat without a laundry selling for so much money!! That is truly amazing!!

We should have all geared up to our eyeballs last year, and bought as many inner city properties as we could! If only we had!!!!! Oh well, there is always the next rising market to look forward to!

 

[The Y-man]

I read with interest this thread - especially since the bulk of our portfolio is in inner melbourne!

However, I wonder if hunting in an area already so hot is ideal?

I posted this one sort of semi-seriously on another thread:
http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=32236857&s=vic&tm=1188826462

Now the asking price of 1.75m does seem a bit hefty..... but let's look at it:

30km from the City

10 (yes TEN) acres

A pretty decent main house (well, I think it looks ok)

PLUS

A 2BR unit

PLUS

A 3BR/2Bathroom house with double garage

Now I haven't seen the actual property - it could be next to a rubbish dump for all I know - but when people are forking out $700k+ for a 2BR house and $400k+ for a 2BR apartment, one starts to wonder.....

Cheers,

The Y-man

 

[jingo]

I read with interest this thread - especially since the bulk of our portfolio is in inner melbourne!

However, I wonder if hunting in an area already so hot is ideal?

I posted this one sort of semi-seriously on another thread:
http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=32236857&s=vic&tm=1188826462

Now the asking price of 1.75m does seem a bit hefty..... but let's look at it:

30km from the City

10 (yes TEN) acres

A pretty decent main house (well, I think it looks ok)

PLUS

A 2BR unit

PLUS

A 3BR/2Bathroom house with double garage

Now I haven't seen the actual property - it could be next to a rubbish dump for all I know - but when people are forking out $700k+ for a 2BR house and $400k+ for a 2BR apartment, one starts to wonder.....

Cheers,

The Y-man

Hi Y-man,

Yes, it could make a lot of sense to buy something further out of the city. Do you think people will keep pushing up house prices in the inner areas in the future, or is this all unsustainable?

As investors, do you think we should leave the inner city to settle for a while, and wait to see what happens (at the risk of possibly being priced out of an area) or continue to buy property we can afford to service in anticipation of further capital growth in the long term? What would you do?

Regards Jason.

 

[The Y-man]

Hi Y-man,

Yes, it could make a lot of sense to buy something further out of the city. Do you think people will keep pushing up house prices in the inner areas in the future, or is this all unsustainable?

I subscribe to the theory it is sustainable - interspersed with (possibly many!) years of dormancy.

As investors, do you think we should leave the inner city to settle for a while, and wait to see what happens (at the risk of possibly being priced out of an area) or continue to buy property we can afford to service in anticipation of further capital growth in the long term? What would you do?

I merely think one should keep an open mind

For what it's worth, I've been watching properties in:
Narre Warren South
Langwarren
The Basin
Boronia
Belgrave
Mooroolbark
Montrose

Do understand however, that the agenda for my search were not "purely ip" - but possible PPOR and/or future subdiv possibilities.

Also, I believe the following properties in my portfolio have not kept up with the price race (hint hint):
1BR apt Fairfield
2BR apt Parkville (freeway side)
2BR apt Thornbury (I could be wrong about this one - but i need more evidence)
3BR unit Cheltenham

Cheers,

The Y-man

 

[JIT]

Also, I believe the following properties in my portfolio have not kept up with the price race (hint hint):
1BR apt Fairfield

....

2BR apt Thornbury (I could be wrong about this one - but i need more evidence)

....

Not sure about Fairfield or Thornbury apartments, but I can tell you that Northcote apartments have moved significantly in price over the last 4-5 months.

For instance, a 2br apt (newish, 3-4 years old block) in Northcote, sold for 325k in Jan/Feb this year, but would now sell closer to 390k+. A 1 br apt in the same block sold recently for around 380k!

If this hasn't yet started to happen in Fairfield or Thornbury (for apartments), I doubt it would be too much longer... I think I posted a thread about this a couple of months ago.

GSJ

 

[McBrain]

REIV data for Richmond show an increase in median price for houses from $510k in June 06 qtr to $683k in Jun 07 qtr.

That's a 33.9%pa increase in median price.

Does that mean that I can now refinance to this value without the bank questioning it? Or will the bank do their own valuation based on the individual property.

The reason I ask is the last time I re-financed I simply quoted what I thought the property was worth and was finanaced at 80%.

 

[Danny]

REIV data for Essendon shows an annual increase of 24% to June 07 Median of $687k.

Went to two auctions recently in the area. First was a 2 bedroom unrenovated timber home in Bradshaw Street (almost west essendon) on 860m2. Agents quoted $625k+, sold at autction Saturday before last for $795k.

Last Saturday was a 3 bedroom timber unrenovated home on 810m2 of land in Ogilvie St (near west essendon), again agent quoting $600k+ , sold at auction for $812k.

This is for that part of Essendon that does not have covenant protection (eg. Mar Lodge Estate), lacks sufficient transport, has no real attractions or facilities other than proximity to private schools and essendon airport....not sure if that is good or bad.

Seems like land prices are reaching (and exceed) $1000/m2 for this area.

 

[Danny]

REIV data for Essendon shows an annual increase of 24% to June 07 Median of $687k.

Went to two auctions recently in the area. First was a 2 bedroom unrenovated timber home in Bradshaw Street (almost west essendon) on 860m2. Agents quoted $625k+, sold at autction Saturday before last for $795k.

Last Saturday was a 3 bedroom timber unrenovated home on 810m2 of land in Ogilvie St (near west essendon), again agent quoting $600k+ , sold at auction for $812k.

This is for that part of Essendon that does not have covenant protection (eg. Mar Lodge Estate), lacks sufficient transport, has no real attractions or facilities other than proximity to private schools and essendon airport....not sure if that is good or bad.

Seems like land prices are reaching (and exceed) $1000/m2 for this area.

 

[jingo]

Thanks Y-man,

Definetely food for thought there.

I subscribe to the theory it is sustainable - interspersed with (possibly many!) years of dormancy.

Also, I believe the following properties in my portfolio have not kept up with the price race (hint hint):
1BR apt Fairfield
2BR apt Parkville (freeway side)
2BR apt Thornbury (I could be wrong about this one - but i need more evidence)
3BR unit Cheltenham

Cheers,

The Y-man

I have noticed that Parkville has not risen as well. I can't really understand why when it is such a picturesque suburb which is well serviced by many amenities. (Melb Uni, Hospitals, short trip to Brunswick cafe's etc). Parkville is also very close to the city.

Regards Jason.

 

[The Y-man]

I have noticed that Parkville has not risen as well. I can't really understand why when it is such a picturesque suburb which is well serviced by many amenities. (Melb Uni, Hospitals, short trip to Brunswick cafe's etc). Parkville is also very close to the city.

Regards Jason.

Not sure if the ComGames village helped or hindered......

Cheers,

The Y-man

 

[jingo]

Not sure if the ComGames village helped or hindered......

Cheers,

The Y-man

Interesting! Perhaps Parkville has just been overlooked! I would happily live there. It is very beautiful with all of the parkland.

Regards Jason.