Why is Richmond (Melbourne) median so much cheaper than surrounds?

jazzlobber

jazzlobber

For example my research has yielded the median price in richmond is around the 500-550K and a good 2 or 3 bed single front victorian style house can be had from 420k upwards, which is pretty decent considering the median prices of the following southern surrounds

hawthorn/toorak/South yarra/Prahran

northern surrounds similar maybe slightly cheaper than richmond, eg. collingwood/abbotsford

is there something not so nice about being north of the river, bridge st and swan st and nice, victoria street has a fair share of asian but nothing wrong with that.

i reckon richmond makes a good investment sense and good location from a ppor point of view as its closer to the city than most of the above locations that can be anywhere from 100k to 400k higher median, in fact toorak is probably even higher.

so whats the problem with Richmond?

also there was an article on domain.com.au stating that richmond was in the top 10 of suburbs likely to perform well in the next cycle.

appreciate local mellyites views please:)

ta very much

jizzlob
 
I do think Richmond will perform very well, however in comparision to Hawthorn, Richmond has:
- Some industrial areas
- Smaller average block sizes
- Lower quality houses
- Narrower streets (many are one way)
- (complete?) lack of nature strips
- Much less parkland
- Much less private schools
- Existance of some high rise public housing blocks
- A reputation for being a suburb where there is a drug problem, and as a perception it is less safe

The areas it is better than Hawthorn are
- cheaper housing
- even better cafes and resturants (and that's saying something because Hawthorn is also very good)
- more retail stores
- proximity to city

I think Richmond is a good place for a single or a couple, but IMHO not a great place to raise a family for the reasons I've stated.

FYI: the nicer area of Richmond is refered to as "Richmond Hill".

Good luck :)
 
Hi jizzlobber


There is nothing wrong with Richmond! It is a funky inner city walk to cbd location.

Some things to consider. What is the median size of dwellings in those surrounding suburbs? I suspect that Richmod dwellings are smaller and therefore you aer not comparing apples with apples. Richmond also is made up of considerably different areas with very different house prices. Richmond Hill for example is THE place to live and the property prices reflect this. So the median price in Richmond Hill would not be the same as the median near Vcitoria St in the Asian sector or the end near Burnley.

Richmond Hill is a high rental area due to its great location but I do not currently hold property in this area so I don't know how Docklands, and other inner city developments have effected the Richmond market

There is nothing wrong with Richmond. Sometimes the statistics do not tell the whole story. ;)
 
thanks for the comments very useful indeed.

which end is richmond hill?? i dont see it on the maps?

and oh yeah

i am a complete novice

-j
 
Overall a great place to live, however as others have said there are some crappy places around that do drag that price down. I know because I lived in them! Proximity to the commission houses is a bad thing as well.

I think mdk92 summed it up quite nicely for you.

Hoddle is still punt road at that stage, but yes, I think you're correct. I lived right near there too, walk to city, walk to my work on St Kilda road via the Botanical Gardens... hmmmm nice.

Probably the best way to find out is to put foot to pavement if you haven't already done so.
 
Hi Jizzlob,

I agree with the other comments, Richmond is a pretty fantastic place, but it does have the "dodgy" parts. The other suburbs you're trying to compare it to don't have the high rise housing commision flats and drug problems that certain areas of Richmond have. Then again, they probably don't seem to have the cultural diversity Richmond has. In terms of an IP, I think you'd be pretty happy. There are many people eager to rent there - the proximity to the CBD, cafes, shops, transport is fantastic. You won't get the values you would in South Yarra or Hawthorn, but tenants are easier to please than owner occupiers :D

Cheers,
Jen
 
The Hill has two sides…..so extends to the other side of Church Street as well. It actually is a big hill, with St Igantious perched right on top. Technically I think Coppin St is the eastern boarder of the hill, although I’d probably not buy east of Mary St if you wanted a Richmond Hill address. Gee, I’d hate to think Elm Gv would miss out on being classed as Richmond Hill. :eek:

I happen to love Richmond…….but wouldn’t buy off the Hill unless it was too good an opportunity to pass up.

Ruby :)
 
Just wondering if Richmond is still considered dodgy to live in, what about area of Baker street? Would be be ok for a young daughter 18 living on her own and studying in the city/ Thanks
 
I live in Richmond, not far from the corner of Church St and Bridge Rd. There's a LOT of development going on right now. Like other posters, I think certain parts are better than others and those parts are what's driving the median down. I paid $1,150 for my combined PPOR/IP 2 years ago and it was valued by the bank 2 months ago for $1,350.

Richmond is a big suburb and there's parts, like those closer to or on Punt Rd, or streets close to Victoria St that are not considered 'as good' as the parts around or in Richmond Hill.

Before I moved to Richmond I was a Fitzroy girl. We would NEVER leave Richmond now. We LOVE living here. As another poster says, it has cultural diversity. Great food and shopping too.

Prices are going CRAZY for property I've looked at, but then I've been looking in the more desirable parts of Richmond. Stay close to Bridge Rd and you'll be fine I think.

Can't speak for the area close to Swan St. Obviously the main train station is there which is a bonus but because I live off Bridge Rd I've never felt the need to go down there.

Schools ARE a problem here. There aren't really any decent high schools, which probably drags the price down for family homes. Can't say I've seen the drug problem myself. I saw a lot more of that action in Fitzroy and Collingwood than in Richmond.
 
While Richmond's prices aren't as much as Hawthorn etc., that's because their block sizes are smaller. But if you examine it on a $ per sqm basis, Richmond properties are actually not that low. People pay ~$4,000 per sqm for a crappy house+land in Richmond. By comparison, places like Kew etc. you pay only about $3,000 in the good areas. Go figure.
 
In the right parts of Richmond, they are very expensive. I don't think you'd find Richmond cheaper on a per sqm basis compared to the likes of Hawthorn and Kew.

In the wrong parts, well people have said it. Demographcis (eg around the commission flats), amenities, stigma, types of retail shops etc all have an impact. Can't compare an area like this in Richmond with South Yarra or Hawthorn...
 
jazzlobber said:
For example my research has yielded the median price in richmond is around the 500-550K and a good 2 or 3 bed single front victorian style house can be had from 420k upwards, which is pretty decent considering the median prices of the following southern surrounds
Click to expand...

You think you can buy a good 2 or 3 bedroom victorian in Richmond for 420k? Where? I'll take 5 at that price.

Median house price reported in 2008 for a house in Richmond was 657 750. The market has gone up since then.

2 Bedroom average appartments are 400k - 450 k, very average victorians, 550k+.
 
regroy said:
Just wondering if Richmond is still considered dodgy to live in, what about area of Baker street? Would be be ok for a young daughter 18 living on her own and studying in the city/ Thanks
Click to expand...

Is she renting or are you buying a place for her to live in? If it is rent, the difference could be only $30-40 per week between a poor area of Richmond and a good area of Richmond (i.e. Richmond Hill for example). And in my opinion, worth to spend this extra amount for the piece of mind.

I personally think Baker St is a bit 'unsafe' considering it is pretty dark at night there (lack of lamp posts). I know the street quite well. A bit too close to the commission flats for my liking and on the wrong pockets of Richmond (pretty much anything close to Victoria St is).

Richmond is a great area to rent, also safe in my opinion but be selective in the areas to choose (and if that means paying an extra few dollars per week, then so be it).

Btw, sorry, but I can't help myself to ask, but is your daughter taken? haha...I am 24 and am looking for a girlfriend.
 
Another example of the Victoria St issue is that when we were looking, we saw one place on Little Hoddle St - very close to Victoria St for $920K. We ended up paying $230K more to be where we are for a pretty similar sized/quality property.
 
hiya all

didnt want to start a new thread

I have domain alerts on for richmond, l like the area.

I just got this

http://www.domain.com.au/Property/For-Sale/House/VIC/Richmond/?adid=2008694911&eb=169183

advertised for $790k-$830k

I accidentally clicked the search button on my email and I found out that this just 3 months ago, was advertised for $995k!

im being curious but was $995k ridiculously overpriced or has the inner city market cooled off significantly.

me thinks for the right price, this would be a good reno and sell off project.

DISCLAIMER: I have no association with this property whatsoever, and am just browsing in richmond for a potential buy, reno, rent/sell project
 
Property Meister said:
hiya all

didnt want to start a new thread

I have domain alerts on for richmond, l like the area.

I just got this

http://www.domain.com.au/Property/For-Sale/House/VIC/Richmond/?adid=2008694911&eb=169183

advertised for $790k-$830k

I accidentally clicked the search button on my email and I found out that this just 3 months ago, was advertised for $995k!

im being curious but was $995k ridiculously overpriced or has the inner city market cooled off significantly.

me thinks for the right price, this would be a good reno and sell off project.

DISCLAIMER: I have no association with this property whatsoever, and am just browsing in richmond for a potential buy, reno, rent/sell project
Click to expand...

Yes, $995k is a massively overpriced. High 8's probably, low 9's on a very good day. HS are notorious underquoters

As for a reno opp, mmm, tiled roof which isn't original. Is that cladding? If so what conditions are the weatherboards. Doesn't have any external original features (verandah), no chimney ie fireplaces gone. This isn't anything really aesthetically appealing that you can see at least from the pics, that would be transformed into something that a prospective purchaser would pay a premium for.

It is a knockdown job and build something contemporary in my opinion. Look at the property to its right on street view, that has more the features and front facade you want to look at for a reno job. Of course you will pay more for it.

And that area of Cremorne/Richmond is still very light industrial. I am sure that will change to like the rest of Richmond, Collingwood (Go Pies), Abbotsford in time.
 
Last edited:
thanks buzzlight year

I wasnt aware that HS are nortorious for underquoting in richmond (im not an expert in that area

the ad says $790-830k

in todays market, and since its sitting on the market for at least 3 months that Im aware of, judging by the price range, you could geti t for $790k, if i was interested in this one, id simply offer them $790k firm and say take it or leave it and say thats what the range says!!!

I dont know much about richmond, but it does seem that the cremorne area is a bit indsutrial so for long term growth it might be a better purchase then in the better areas of richmond.

as for rennovating, yes, a tear down job might be better, I ve seen heaps of places that look crap from the outside but inside look like a palace and thought this one could be turned into one of them....
 
You must log in or register to reply here.

Similar threads

Jake Milne
What's hot 2013 (Melbourne)
2
Replies
35
Views
14K
Jake Milne
Jake Milne
Z
Off the Plan in Port Melbourne
Replies
15
Views
5K
zed_kid
Z
P
Why are 4brs/family homes dropping the most
2
Replies
25
Views
3K
Shadow
Shadow
Ruby
The Spiderman Interview
Replies
0
Views
8K
Ruby
Ruby
redwing
Where are the bargain properties?
Replies
4
Views
3K
jaycee
jaycee
Back
Top