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

Nikki84 said:
INMO This place was an absolute bargain.

I was at the auction today and it sold for $395K. Not the best location, but it is still a house and close to the city, and for that alone its amazing!


http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=104247275&t=res
Click to expand...


Hi Nikki84,

I would agree, the house you mentioned in Stewart Street Brunswick seems to be a genuine bargain. My only question would be how much work needed to be done to the property to bring it up to a liveable condition?

I looked at buying a Single fronted 2 bedroom Terrace home at 67 Stewart Street earlier this year. The house was in very good condition and had off street parking. It sold for $569,000. In this light the one you listed above seems to be good value for money. (Sorry I don't have a link, as 67 Stewart Street was sold before it was advertised on the internet).


Two bedroom flats closer to the city are going for a similar price to the house that was just sold in Stewart Street. See the link below:

http://www.realestate.com.au/cgi-bi...eader=&c=36172522&s=vic&snf=ras&tm=1189912960


This 2 bedroom flat went for $425,000 last weekend:

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006617624

Regards Jason.
 
GSJ said:
Did anyone go to the Avondale St. auction in Armadale?

GSJ
Click to expand...


No, and it's not in the paper :( But would be curious if anyone knows.


This is also an interesting one - not sure exactly what it sold for (again, not in the paper :( ), but based on Sold Result in RE.com, I'm guessing $355k.

Quoting price was $240k+ , unrenovated ground floor 2-bed small unit, with balcony and all bedroom windows looking straight into the sidedrive/parking lot. Great location though!

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=47478408&s=vic&tm=1189994428
 
Hi Jason,


Those links of yours certainly highlight how cheap Stewart St was. I was just there for research unfortunately, but was certainly wishing I was in a position to buy it when it went on the market @ $390!
I might have low standards but I would say it was certainly livable/tenantable. However, with the unfortunate configuration of the almost original kitchen/laundry & bathrm at the rear it would take a decent reno to bring it into line with the open plan all glass at the back houses everyone seems to love. Structurally, it seemed quite straight and solid with no cracks.


Its always a pleasant reminder to know that even in this market, there are bargains to be had:)

Cheers
Nikki
 
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JenD said:
No, and it's not in the paper :( But would be curious if anyone knows.


This is also an interesting one - not sure exactly what it sold for (again, not in the paper :( ), but based on Sold Result in RE.com, I'm guessing $355k.

Quoting price was $240k+ , unrenovated ground floor 2-bed small unit, with balcony and all bedroom windows looking straight into the sidedrive/parking lot. Great location though!

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=47478408&s=vic&tm=1189994428
Click to expand...

Hi Jen,

I saw through the link to the property in Brunswick that you have posted above, and would be interested to know the result as well. The flat was very ordinary! It would need a total renovation. It also smelt strange inside!!

There was also something dodgy with the parking. The real estate agent told me that all of the owners had decided to swap car parks. I was confused by the end as I couldn't work out how this would work out legally! Although the location was good I decided it wasn't for me!

Regards Jason.
 
Just around the corner

Quote
Arkay Here's another:

http://www.realestate.com.au/cgi-bin...&tm=1189918944

Bought for $490 unrenovated within the last 12 months.

Advertised at $660k+

Sold yesterday for $920k

Nice reno but it's still just a 3x2 weatherboard!

Wish it was mine

Cheers,

Arkay.

In response;

http://www.realestate.com.au/cgi-bi...header=&c=4820019&s=vic&snf=rbs&tm=1190029516

We have an IP in Centre Road that is up for Auction with the same agent this coming weekend. It is about 3 minutes walk from England Street and is listed with the same agent yet we have had hardly any enquires:( The property has been rented out the entire 5 years we have owned it but has not been renovated.

If we don't get our price we will just sit on it:cool: What worries us is this current market looks very similar to the overheated property boom that occurred in the late 80's in Melbourne and that took 10 years to sort itself out. This is not a buying investors market the yields are just silly

Non recourse finance is the only way to buy!
 
nonrecourse said:
In response;

http://www.realestate.com.au/cgi-bi...header=&c=4820019&s=vic&snf=rbs&tm=1190029516

We have an IP in Centre Road that is up for Auction with the same agent this coming weekend. It is about 3 minutes walk from England Street and is listed with the same agent yet we have had hardly any enquires:( The property has been rented out the entire 5 years we have owned it but has not been renovated.

If we don't get our price we will just sit on it:cool: What worries us is this current market looks very similar to the overheated property boom that occurred in the late 80's in Melbourne and that took 10 years to sort itself out. This is not a buying investors market the yields are just silly

Non recourse finance is the only way to buy!
Click to expand...

Nonrecourse,

I really wish you good luck on the sale.

From my knowledge of the area though I can offer this:

1. It's on a main road. Very busy corner there. We used to have an IP in Blamey St (and lived there for a while) and it was a pain to get out of there in the morning, very busy.

2. You're a bit further down. Most of the activity that we've been witness to has been on the other side of East Boundary Road. It seemed to spread down from Bentleigh proper over time. Perhaps it will keep going. It's only a few streets away!

Cheers,

Arkay.
 
L.AAussie said:
This all seems like L.A in 2005 - Prices were going mad, then there were a few rate rises, then there was a sub-prime lending collapse which a lot of the exhorbitent prices were funded by. A lot of the exotic loans were the tools used to force the boom along, and in the end many couldn't afford to maintain them and it's ending in very big tears now.

I just wonder if this is the case in Aus right now. I hope not.

I wonder how many of these fantastic recent sales are funded by exotic loans which people would not normally be able to get due to the last run of rate rises?

If they are, then watch out in about 12-18 months I'm thinking. We may just have the shortest time in history between the last boom and correction and the next boom and correction.
Click to expand...

So funny uou said that - I have been saying that Melbourne seems like LA 2-3 years ago :D yes I see similarities, and even without the sub-prime crash, once the economy turns down, people cannot service the mortgages they are getting themselves into. I know having been through it, I am now selling in Melbourne and holding my cash and waiting for a couple of years for a downturn to buy.
 
This rise in values in Melbourne overall is nowhere near the magnitude of previous booms. Whether it turns into something like previous ones, or whether it's a short sharp spike that will level out soon, who knows, but I don't think anyone can say it's risen "too far"
 

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Re: News of Credit Crunch and Impact on Inner Market

Hi,

I would be interested to know if the recent reports on the current credit crunch in the US are having any impact on the Inner market in Melbourne. I would be particularly interested to know if there will be any impact on the market this coming Saturday in auction results and prices.

Look forward to reading the replies.

Regards Jason.
 
Jason,

Property markets tend to be bit more stable then the share markets so you may not see an effect this weekend BUT there is definately a connection between the global credit squeeze and the local property markets...

It may take 6-12 months for the connection to become apparent. But with affordability at its lowest and interest rates on rise (even after yestd. US cut) and economy operating at its peak, i see very limited upside to property prices and more chances of it going south.

My 2c.
 
JenD said:
Still hot!!

Went to this auction today - 2-bedroom in Prahran, renovated, refurbished block - quoting $380k+

Sold for $510k

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=35268739&s=vic&tm=1190451497
Click to expand...

Here are some more results of 2 bedroom flats sold over the weekend to add to your's above Jen:

This 2 bedroom flat with a car space at 22/174 Lee Street in Carlton Nth sold for $420,000. It is in a reasonable location with good access to the Lygon Street tram and the cafe's and restaurants of Rathdowne Street. The flat has been renovated (albeit cheaply), and the entrance and balcony faces West. There are glimpses of the Melbourne cemetery from the Master Bedroom. :eek:

http://www.realestate.com.au/cgi-bi...eader=&c=69590933&s=vic&snf=ras&tm=1190543291


The 2 bedroom flat below at 9/49 Trivoli Road sold for $520,000. According to the Market Wrap section of the Sunday Age (23/09/2007, pg 3) an identical property sold in the same building for $402,000 in April.

http://www.realestate.com.au/cgi-bi...eader=&c=24240149&s=vic&snf=ras&tm=1190541091


This two bedroom 1970's style flat at 3/88 Addison Street in Elwood sold for $567,000. According to the Market Wrap section of the Sunday Age (23/09/2007, pg 3) the sale represents a 60% increase in value since it was last sold 3 years ago.

http://www.realestate.com.au/cgi-bi...eader=&c=51798326&s=vic&snf=ras&tm=1190542807

At the end of the article in the Market Wrap section of the Sunday Age (23/09/2007, pg 3) Richard Wakelin of the Wakelin Property Advisory said that "there's a certain category of buyer that's not prepared to move out of the city, so they're going with apartments and the prices are corespondingly rising with this demand." The article also mentioned that apartments and units are "considered by some to be one of the last (and fast disappearing) bastions of affordability in the inner areas."

This can hardly be disputed in light of the recent results for 2 bedroom flats.


In my research I came across this quirky one bedroom flat at 3/3 Haines Street in Nth Melbourne. It sold for $354,000. Although well located there is no car space. The building itself looks like a bit of an afterthought!! :eek:

http://www.realestate.com.au/cgi-bi...eader=&c=27246538&s=vic&snf=ras&tm=1190532415
 
I attended the auction for this property. The photos are flattering, it seemed to be a 15+ y.o. reno that is OK but starting to look a bit dated. Land is 350m2. No backyard except for car space. Undisclosed result in the Sunday paper (as most seem to be these days to 1m+ hawthorn properties).

Big opening bid of 1.25, declared on the market at 1.31, sold for 1.322. 4 bidders. A higher price than I expected, but less hotly contested than previous months, probably due to very high opening bid.
 
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jingo said:
This two bedroom 1970's style flat at 3/88 Addison Street in Elwood sold for $567,000. According to the Market Wrap section of the Sunday Age (23/09/2007, pg 3) the sale represents a 60% increase in value since it was last sold 3 years ago.

http://www.realestate.com.au/cgi-bi...eader=&c=51798326&s=vic&snf=ras&tm=1190542807

At the end of the article in the Market Wrap section of the Sunday Age (23/09/2007, pg 3) Richard Wakelin of the Wakelin Property Advisory said that "there's a certain category of buyer that's not prepared to move out of the city, so they're going with apartments and the prices are corespondingly rising with this demand." The article also mentioned that apartments and units are "considered by some to be one of the last (and fast disappearing) bastions of affordability in the inner areas."

This can hardly be disputed in light of the recent results for 2 bedroom flats.


In my research I came across this quirky one bedroom flat at 3/3 Haines Street in Nth Melbourne. It sold for $354,000. Although well located there is no car space. The building itself looks like a bit of an afterthought!! :eek:

http://www.realestate.com.au/cgi-bi...eader=&c=27246538&s=vic&snf=ras&tm=1190532415
Click to expand...

Far out... that Ellwood result makes my new place look like a bargain!

The 'after thought' is strange... must feel like living in a garage. They could have at least painted it the same colour!
 
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