|
Owner
News   |
| Hot Property Feature: Melbourne on the Boil |
| There
is no doubt that the better positioned suburbs of Melbourne are a good buy.
Job prospects are comparable to Sydney, but the average family home is cheaper
by 25%, (REINSW, REIV). Perhaps the more astute buyers are realising this,
and are behind the current steady rise in Melbourne property values. |
| One
important factor behind Melbourne real estate being on the up is the number
and character of its innovative large scale developments. The multi-billion
dollar Docklands renewal project is boosting investor confidence generally.
Innovation in this multi-function project ranges from a major international
film venue, to commissioning an artist to synchronize lighting effects to
the level of crowd enthusiasm, as they cheer in the stadium! |
 |
| The
latest release of figures by REIV shows, not surprisingly, that Toorak took
the highest median price of $897,000, compared to $852,000 June 98, a rise
of 5.3%. On the other end of the scale, the suburb of Malvern showed a slip
of 21.2%, down to a still healthy $387,500. The most affordable median prices
were to be found at Melton at only $94,000. Of interest is the whopping
80.9% rise in St Kilda, June to June showing a rise from $192,000 to $348,000.
|
|
Melbourne overall
showed a healthy rise of 14.1% over the same quarter last year, sitting
now at a median house price of $226,000. This is the result of strong
employment, says CEO of the REIV Norman Huon, coupled with low inflation.
Caution should be shown though, in applying these figures to a yearly
trend as they are simply quarterly results. In common with most property
markets, Melbourne's residential sales are volatile and fluctuate widely
subject to supply. Many Melbourne agents note that at the moment there
is a shortage of supply, and this could be a strong contributor to the
rise of one area relative to another.
|
| Nevertheless
the general mood is upbeat, with the most recent LaSalle Advisory report
claiming Melbourne will give a better than Sydney yield in the three year
outlook! Hay Property Consultants note a breakdown of this "explosion in
the residential property market" as being quite variable for different market
areas. In the South East growth has been particularly strong for land in
the outer developing areas, period homes in the established suburbs and
units/townhouses in the inner areas only. In the Metropolitan North they
note "there is a preference for 'private sales'; homes were selling within
two to three weeks with minimal advertising and exposure." In the outer
Bayside/Mornington Peninsula there has been less of an increase. An exception
is in the rural area with 50 acre plus blocks, selling strongly to wine
producers. |
 |
The
other significant boost to property investor confidence has been the large
number of luxury residential projects. This proposed Central Equity tower
has already sold 95% off the plan |
|
|
