Just curious, Ive read this article a few times
http://www.domain.com.au/Public/Art...uburbs bear brunt as real estate market reels
Premium suburbs bear brunt as real estate market reels
Author: Eli Greenblat
Date: November 12, 2008
Publication: The Age (subscribe)
Larger homes in some of Melbourne's more affluent suburbs are taking the brunt of the global financial crisis and a slowdown in the Australian economy.
Figures from the Real Estate Institute of Victoria show that Melbourne's inner-east is the most heavily punished region, with prices for four-bedroom houses falling four times more than the Melbourne median for the September quarter.
At auctions across tree-lined streets in Toorak, Brighton and Kew, bidders are keeping hands in pockets, with auctioneers forced to pass in homes and hope. "I would say there has been a 10% to 15% fall," said local agent Richard Mackinnon, from Bennison Mackinnon, referring to those suburbs. In the September quarter, the median house price for metropolitan Melbourne fell to $435,000 from $450,000, a loss of 3.3%.
He said some of the better suburbs suffered a 10% decline, helped by a lack of supply. But he said as yet there had been few forced sales in Melbourne's most exclusive suburbs despite the financial crisis wiping out end-of-year bonuses and a jump in retrenchment of executive employees. "What will probably go, in terms of forced sales, will be the beach homes and hobby farms in places like Portsea and Sorrento — it's the toys that usually go first."
Four-bedroom homes in the inner east, which includes suburbs such as Kew, Camberwell, Canterbury, Richmond and Hawthorn, posted a 13.2% fall in the September quarter.
Three-bedroom inner-east houses have also faired badly, tripling the city median with a drop of 9.9%.
It was a similar case for three-bedroom homes in the inner-south where homes across St Kilda East, Prahran, Caulfield North and Armadale have slipped for the three months to September by 12%.
REIV figures reveal that four-bedroom homes in Melbourne's inner-east have recorded the largest falls over the past 12 months, dropping 15% since September 2007.
Meanwhile, first home buyers seeking cheaper accommodation have helped hold up demand for two and three-bedroom homes in the inner city, as well as a ring of outlying suburbs circling the capital to the west, north and east.
REIV chief executive Enzo Raimondo said: "It showed that people who were looking to sell their home will still see good demand, particularly in the more affordable segments as Melbourne was experiencing ongoing strong population increases and there are very few vacant rental homes."
Regions that performed better than the 3.3% drop across Melbourne (reflecting strong demand) included inner-city two-bedroom homes with a fall of 2.1%, three-bedroom homes in the outer east (-1.9%) and three-bedroom houses in the west (-0.7%).
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I just can't work out why the good old family home would suffer the most...
I can understand the portseas etc dropping, or the albert parks etc. but why the 4bdrs in the not the ultra high end dropping....
http://www.domain.com.au/Public/Art...uburbs bear brunt as real estate market reels
Premium suburbs bear brunt as real estate market reels
Author: Eli Greenblat
Date: November 12, 2008
Publication: The Age (subscribe)
Larger homes in some of Melbourne's more affluent suburbs are taking the brunt of the global financial crisis and a slowdown in the Australian economy.
Figures from the Real Estate Institute of Victoria show that Melbourne's inner-east is the most heavily punished region, with prices for four-bedroom houses falling four times more than the Melbourne median for the September quarter.
At auctions across tree-lined streets in Toorak, Brighton and Kew, bidders are keeping hands in pockets, with auctioneers forced to pass in homes and hope. "I would say there has been a 10% to 15% fall," said local agent Richard Mackinnon, from Bennison Mackinnon, referring to those suburbs. In the September quarter, the median house price for metropolitan Melbourne fell to $435,000 from $450,000, a loss of 3.3%.
He said some of the better suburbs suffered a 10% decline, helped by a lack of supply. But he said as yet there had been few forced sales in Melbourne's most exclusive suburbs despite the financial crisis wiping out end-of-year bonuses and a jump in retrenchment of executive employees. "What will probably go, in terms of forced sales, will be the beach homes and hobby farms in places like Portsea and Sorrento — it's the toys that usually go first."
Four-bedroom homes in the inner east, which includes suburbs such as Kew, Camberwell, Canterbury, Richmond and Hawthorn, posted a 13.2% fall in the September quarter.
Three-bedroom inner-east houses have also faired badly, tripling the city median with a drop of 9.9%.
It was a similar case for three-bedroom homes in the inner-south where homes across St Kilda East, Prahran, Caulfield North and Armadale have slipped for the three months to September by 12%.
REIV figures reveal that four-bedroom homes in Melbourne's inner-east have recorded the largest falls over the past 12 months, dropping 15% since September 2007.
Meanwhile, first home buyers seeking cheaper accommodation have helped hold up demand for two and three-bedroom homes in the inner city, as well as a ring of outlying suburbs circling the capital to the west, north and east.
REIV chief executive Enzo Raimondo said: "It showed that people who were looking to sell their home will still see good demand, particularly in the more affordable segments as Melbourne was experiencing ongoing strong population increases and there are very few vacant rental homes."
Regions that performed better than the 3.3% drop across Melbourne (reflecting strong demand) included inner-city two-bedroom homes with a fall of 2.1%, three-bedroom homes in the outer east (-1.9%) and three-bedroom houses in the west (-0.7%).
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I just can't work out why the good old family home would suffer the most...
I can understand the portseas etc dropping, or the albert parks etc. but why the 4bdrs in the not the ultra high end dropping....
