ABCDiamond

Reading between the lines of this newspaper article, it would seem that Median Property Prices about to drop....

Units a popular choice for housing affordability

As more people are now buying Townhouses, (like the UK Terraced houses, but more modern), we will see median property prices drop.

eg:
If an area sells 10 x 4/5 bed properties at between $450k and $550k, the median price will be near $500k

But if the same area only sold 10 x 3 bed townhouses for between $300k and $400k, the median price for the area will be nearer $350k

It may not mean that individual property prices are actually dropping, (they may even be rising), but the median would be representing a change in the property type that is popular.

Petals

That also goes for areas where a lot of investment properties change hands. Our median is quite low here but the price needed to buy a nice house is nothing like the median by about two hundred thousand.

ozzieeagle

I'm supposedly pulling down my place and putting up two on my block. I'm waiting for the builders to quieten down and hopefully for the market to get some direction before I build.

I dont think there will be too much difference in my place as it is at present, and one of the finished 25 sq townhouses. Although I suspect they may actually be worth more than my Current house as is... Hopefully they will be worth around 550,000 plus which is the price I want to build the two of them for.

Market still damn confused here, good places going for above the Auction quoted price, and not so good getting passed in.

ABCDiamond

I saw something on TV yesterday; a house at auction, with $299k reserve, first offer $260k but passed in at $280k.
They didn't accept that low figure, but put it on the market in the normal way, and got $306k.

Geelong Gent

I went to an auction with 3 bids about to be passed in

Bid 1 Vendor 850
Bid 2 Vendor 870
Bid 3 Vendor 890

Some twit raises his hand and bids 900 (the hammer was coming down for the third time. Now why would anyone do this????

ABCDiamond

Maybe he wanted to buy it ?

Petals

If you live on a corner and build two dwellings they sell like hot cakes. they do not sell as well if there is one at the back and one at the front as people do not like the connection.

I had many builder clients who went to auction looking for the corner blocks and then built two units/town houses and sold each with separate title no body corporate and made a quid.

I have seen this in action near mum recently, this chap knocked down a house built three nice units one behind the other, he had a price of $350,000 on them they are now $280,000 and been on the market for 12 months no takers. They are close to everything walking distance but the older people just do not like the set up or the price with the set up.

When building units remember that you get no money in Victoria until the whole development is complete, titles issued and this will not happen until all moneys are paid to the instrumentalities and the council and the landscaping is complete. I have seen a few amateur developers get caught out thinking I can build one and sell it and then finish the other, no you cannot.

Geelong Gent

Yes corner blocks are preferential but it does not mean you have to have a body corporate if you create the right easement.

There is a horrible development in Seaford where someone has created a side by side semi-attached (common party wall). Think long and narrow house with no garden and single garage. 3 small beds not well planned layout - you can tell it was a builders design). Driveway only long enough for small car (must have handbrake on when parking). Market value currently $550k for large 4 bed detached in area - these are on for $680k??????