Where to find the best value in Melbourne
Nov 7th 2007, 5:46 pm
#1
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Joined: Feb 2002
Posts: 721
Where to find the best value in Melbourne
Author: Michelle Draper
Date: November 7, 2007
http://www.domain.com.au/Public/Arti...=NationalIndex
Look beyond the areas that have already boomed, writes Michelle Draper.
Box Hill and Surrey Hills were once considered to be the 'burbs. Not so any more. Like many of the middle-ring suburbs located 10 to 20 kilometres from the CBD, the likes of Box Hill, Mont Albert and Surrey Hills have almost become extensions of traditional blue-chip areas such as Camberwell and Malvern.
Median prices in the eastern suburbs beyond the 10-kilometre boundary have risen steadily over the past year to more than $500,000 in Box Hill and more than $1 million in Surrey Hills, according to the Real Estate Institute of Victoria's June quarter data.
Noel Jones chief executive Adrian Jones recalls this hasn't always been the case. He remembers when Surrey Hills was a "four-person suburb" and Box Hill was considered a dubious investment. "Box Hill and Box Hill South are no longer considered risky. That's solid blue-chip real estate."
These observations would be sweet music to the ears of long-term residents in the eastern suburbs. Those who bought property in the past few years in Ashburton, Ashwood, Blackburn and Burwood should also be smiling.
Houses in these suburbs exceeded the $500,000 median price mark in June, according to the REIV data.
Mr Jones suggests looking to the suburbs beyond the suburbs that have already boomed. "The bargains are always in the next suburb out from the ones that have just taken off. A year ago I would have said Mont Albert North, Blackburn, and those sorts of areas. They have now all taken off," he says.
Mr Jones suggests Bulleen, Burwood, Burwood East and Vermont in the east and Mordialloc in the south.
Cameron Way of Woodards Blackburn says there are still good buys in areas on the perimeter of Blackburn, such as Forest Hill and Nunawading. Sticking close to public transport or freeway extensions is a good idea if you want to reap a decent capital gain.
"We would expect to the see the next growth areas close to new freeway extensions," he says.
Further south, properties in the sought-after McKinnon High School zone have been selling in the mid-$700,000s, up from about $520,000 a year ago, says Hocking Stuart Bentleigh director Nick Renna.
A frenzy of buyers outside Bentleigh East has pushed prices up from around $400,000 last year to the $500,000-$600,000 range, he says.
"It's been a big jump. A lot of investors have come out, while first-home buyers have found it a bit tough," Mr Renna says. Developers have been snapping up blocks, too.
He suggests Hughesdale, Murrumbeena, Moorabbin and Cheltenham through to Parkdale are areas with room for price growth.
Cheltenham, for example, recently hit a median of $514,500, a 30 per cent increase on the $394,000 median recorded last quarter.
In the north, prices in the green belt from Heidelberg to Eltham have also been increasing. The median price in Lower Plenty rose from $440,000 last year to $784,500 in the June quarter, albeit based on fewer than 30 sales.
Rocco Montanaro, an associate director with Morrison Kleeman Eltham, says Lower Plenty is the star of the north-east. The small suburb is one of Melbourne's best kept secrets, he says, with houses fetching phenomenal prices. Two regular homes sold recently for $630,000 and $530,000 while others have been known to go for up to $2 million, Mr Montanaro says.
"The bar is lifting there quite dramatically. The entry price for Lower Plenty is high $400,000s to low $500,000s."
Montmorency is another hot favourite in the north-east. Land size is generous, the railway station is close and there are lots of character weatherboards. Mr Montanaro says "Monty" is also appealing because of up-and-coming Were Street: "That's a gorgeous little shopping strip."
REIV statistics put the suburb's median house price at $385,000 this June, compared to $388,000 at the same time last year.
Mr Montanaro also nominates Briar Hill, Viewbank and Greensborough as areas that could experience growth. Greensborough has significant development in the pipeline, including a new town centre, with a $33 million aquatic centre and $21.4 million civic centre.
Bundoora still offers choice in the $300,000 range. Heading west, Glenroy houses recorded a median price in June of $308,000. "Glenroy is undervalued," he says.
With Essendon recording a median house price of $683,000 in the June quarter and properties regularly selling well into the millions, the market has been trying to predict whether surrounding suburbs will follow suit.
Pennisi Real Estate director Sam Pennisi suggests Keilor and Keilor East are ones to watch. Meanwhile, he also points to the St Bernard's Estate in Avondale Heights for homes built in the 1970s and 1980s that are ripe for refurbishment.
But, generally speaking, the best options for capital growth in the middle-ring suburbs will be in the eastern and south-eastern corridors, according to buyers advocate David Morrell.
He says to look for areas with a bit of soul and a community vibe, because that is what has driven house prices in inner suburbs such as Northcote, Thornbury and Hawthorn.
Mr Morrell predicted the spring season, traditionally the busiest time of the year for real estate, could see a softening of the market in the mortgage-sensitive middle suburbs.
"I think it will be sensitive to any interest rate hike ... People in that belt are seriously conscious of mortgages."
Date: November 7, 2007
http://www.domain.com.au/Public/Arti...=NationalIndex
Look beyond the areas that have already boomed, writes Michelle Draper.
Box Hill and Surrey Hills were once considered to be the 'burbs. Not so any more. Like many of the middle-ring suburbs located 10 to 20 kilometres from the CBD, the likes of Box Hill, Mont Albert and Surrey Hills have almost become extensions of traditional blue-chip areas such as Camberwell and Malvern.
Median prices in the eastern suburbs beyond the 10-kilometre boundary have risen steadily over the past year to more than $500,000 in Box Hill and more than $1 million in Surrey Hills, according to the Real Estate Institute of Victoria's June quarter data.
Noel Jones chief executive Adrian Jones recalls this hasn't always been the case. He remembers when Surrey Hills was a "four-person suburb" and Box Hill was considered a dubious investment. "Box Hill and Box Hill South are no longer considered risky. That's solid blue-chip real estate."
These observations would be sweet music to the ears of long-term residents in the eastern suburbs. Those who bought property in the past few years in Ashburton, Ashwood, Blackburn and Burwood should also be smiling.
Houses in these suburbs exceeded the $500,000 median price mark in June, according to the REIV data.
Mr Jones suggests looking to the suburbs beyond the suburbs that have already boomed. "The bargains are always in the next suburb out from the ones that have just taken off. A year ago I would have said Mont Albert North, Blackburn, and those sorts of areas. They have now all taken off," he says.
Mr Jones suggests Bulleen, Burwood, Burwood East and Vermont in the east and Mordialloc in the south.
Cameron Way of Woodards Blackburn says there are still good buys in areas on the perimeter of Blackburn, such as Forest Hill and Nunawading. Sticking close to public transport or freeway extensions is a good idea if you want to reap a decent capital gain.
"We would expect to the see the next growth areas close to new freeway extensions," he says.
Further south, properties in the sought-after McKinnon High School zone have been selling in the mid-$700,000s, up from about $520,000 a year ago, says Hocking Stuart Bentleigh director Nick Renna.
A frenzy of buyers outside Bentleigh East has pushed prices up from around $400,000 last year to the $500,000-$600,000 range, he says.
"It's been a big jump. A lot of investors have come out, while first-home buyers have found it a bit tough," Mr Renna says. Developers have been snapping up blocks, too.
He suggests Hughesdale, Murrumbeena, Moorabbin and Cheltenham through to Parkdale are areas with room for price growth.
Cheltenham, for example, recently hit a median of $514,500, a 30 per cent increase on the $394,000 median recorded last quarter.
In the north, prices in the green belt from Heidelberg to Eltham have also been increasing. The median price in Lower Plenty rose from $440,000 last year to $784,500 in the June quarter, albeit based on fewer than 30 sales.
Rocco Montanaro, an associate director with Morrison Kleeman Eltham, says Lower Plenty is the star of the north-east. The small suburb is one of Melbourne's best kept secrets, he says, with houses fetching phenomenal prices. Two regular homes sold recently for $630,000 and $530,000 while others have been known to go for up to $2 million, Mr Montanaro says.
"The bar is lifting there quite dramatically. The entry price for Lower Plenty is high $400,000s to low $500,000s."
Montmorency is another hot favourite in the north-east. Land size is generous, the railway station is close and there are lots of character weatherboards. Mr Montanaro says "Monty" is also appealing because of up-and-coming Were Street: "That's a gorgeous little shopping strip."
REIV statistics put the suburb's median house price at $385,000 this June, compared to $388,000 at the same time last year.
Mr Montanaro also nominates Briar Hill, Viewbank and Greensborough as areas that could experience growth. Greensborough has significant development in the pipeline, including a new town centre, with a $33 million aquatic centre and $21.4 million civic centre.
Bundoora still offers choice in the $300,000 range. Heading west, Glenroy houses recorded a median price in June of $308,000. "Glenroy is undervalued," he says.
With Essendon recording a median house price of $683,000 in the June quarter and properties regularly selling well into the millions, the market has been trying to predict whether surrounding suburbs will follow suit.
Pennisi Real Estate director Sam Pennisi suggests Keilor and Keilor East are ones to watch. Meanwhile, he also points to the St Bernard's Estate in Avondale Heights for homes built in the 1970s and 1980s that are ripe for refurbishment.
But, generally speaking, the best options for capital growth in the middle-ring suburbs will be in the eastern and south-eastern corridors, according to buyers advocate David Morrell.
He says to look for areas with a bit of soul and a community vibe, because that is what has driven house prices in inner suburbs such as Northcote, Thornbury and Hawthorn.
Mr Morrell predicted the spring season, traditionally the busiest time of the year for real estate, could see a softening of the market in the mortgage-sensitive middle suburbs.
"I think it will be sensitive to any interest rate hike ... People in that belt are seriously conscious of mortgages."
Nov 7th 2007, 6:30 pm
#2
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Joined: Sep 2007
Location: Cork, Ireland
Posts: 1,311
Re: Where to find the best value in Melbourne
interesting read. thanks
Nov 7th 2007, 9:05 pm
#3
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Joined: Apr 2005
Location: On the edge of the Dandenongs, Melbourne
Posts: 2,387
Re: Where to find the best value in Melbourne
Interesting report - thanks for sharing.
If you don't mind being 45 mins out and only need 3 bedrooms, there are still bargains to be had in The Basin. Prices have risen around 20% in the past year and, I believe, will continue to do so.
http://www.realestate.com.au/cgi-bin...&tm=1194472947
http://www.realestate.com.au/cgi-bin...&tm=1194472947
(the above view of the CBD is on a zoom lens!)
If you don't mind being 45 mins out and only need 3 bedrooms, there are still bargains to be had in The Basin. Prices have risen around 20% in the past year and, I believe, will continue to do so.
http://www.realestate.com.au/cgi-bin...&tm=1194472947
http://www.realestate.com.au/cgi-bin...&tm=1194472947
(the above view of the CBD is on a zoom lens!)
