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Developing in Melbourne - current market

Discussion in 'Development' started by MTR, 25th Aug, 2016.

  1. MTR

    MTR Well-Known Member Premium Member

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    There seems to be a massive demand for single style/type villas/units. At least I am noticing this in middle ring areas where I have been developing.

    Seems you can ask a premium for these and they will fly out the door, they will fetch much higher price than a double storey townhouse which may have a larger floor plan.

    Its quite extraordinary, I think the demand is coming basically from baby boomers?

    The trick is trying to find a suitable block of land where you can actually achieve this. With Croydon unfortunately I only got 1 single and 2 double storey town houses, now if they were all single storey the figures would be very different
     
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  2. MrFox

    MrFox Well-Known Member

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    Your target buyer is a local downsizer. Melbourne people have not warm up to apartments yet. If you are short stroll to shops you can't go wrong.
     
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  3. abbyfresh

    abbyfresh Well-Known Member

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    I think as people get older and downsize, ground level access without stairs and private courtyard area (providing security isn't an issue) is rated a popular choice and this type of property will be increasingly scarce compared to all the larger new developments going up. Yes lift access is like ground floor, but you don't have your private garden area to hangout and do a bit of gardening (even if only small). Compared to mainly the 2 storey town houses going up, the old fashioned villa is left behind in numbers. Plenty stay in their original large family homes if they can afford to and health allows for it as they couldn't comprehend living in an apartment at all.
     
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  4. MTR

    MTR Well-Known Member Premium Member

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    I have made sure we have master bedroom/ensuite on ground floor with all my townhouses to open my market hope this works
     
  5. MrFox

    MrFox Well-Known Member

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    That will definitely help. The bedrooms upstair are just for grandchildren. Downsizers like plenty of storage as well. They are coming from much larger property and have lots of stuff. If you can have a room for a caravan is also a bonus.
     
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  6. skuzy

    skuzy Well-Known Member

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    for non melbournites - what is considered "middle ring" ?
     
  7. mimosa

    mimosa Member

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    On a similar theme, what do people think about demand for medium (eg 3 bed, 2 bath) single level homes with double garage? There don't seem to be many of these around, especially newer properties. I know an extra bedroom would generally be seen as more valuable, but surely there is a growing section of retirees or DINKS that would value the extra garage space for storage of tools, bikes, camping equipment, any 'hobby' item really, very highly? Or is this section of the community just too small?
     
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  8. MTR

    MTR Well-Known Member Premium Member

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    Agree
    The market I am targeting baby boomers and FHB
     
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  9. The Y-man

    The Y-man Moderator Staff Member

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    Outside the inner ring and inside the outer ring ;)

    I call it 15~25km radius from Glen Iris (I think that's the populations centre of gravity in Melbourne!)

    The Y-man
     
  10. MTR

    MTR Well-Known Member Premium Member

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    I am not from Melb, but have one foot in the door.. so I say its anywhere from 10-25 km from CBD... though Croydon is around 30 km from CBD. This pocket has taken off because Ringwood one suburb in has gone ballistic and pushed buyers out and we have the ripple effect happening.
     
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  11. Tufan Chakir

    Tufan Chakir Well-Known Member

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    It's largely real estate agent driven. their formula, which they believe makes it easy to sell - 3 bedrooms, two bathrooms, Walk-in robe to main bedroom, double garage, ideally with 'workshop" space, and if possible "alfresco" undercover outdoor area. Nothing about design quality, or orientation, or running costs
     
  12. MTR

    MTR Well-Known Member Premium Member

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    Someone posted this type of product you mention in Brighton area.
    There is huge demand and buyers will pay a premium for this product, in particular tightly held areas (close to CBD) as the choices are limited, in the main older units or apartments.
     
    Last edited: 27th Aug, 2016
  13. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    I believe this market segment applies Australia wide as people from this generation would prefer a stand alone dwelling over an apartment complex. Plus strata fees will be low or non existent in a smaller boutique style complex.
     
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  14. Otie

    Otie Well-Known Member

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  15. MTR

    MTR Well-Known Member Premium Member

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    Nice
    Buyers are much more savvy these days, what was once higher specification is now stock standard ie stone benchtops, higher ceilings etc. These are what buyers want and what sells
     
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  16. sanj

    sanj Well-Known Member

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    Agree that buyers are more savvy but imo what they want and what gets our projects higher returns arent simple spec upgrades, any monkey can do that ans thats all rubbish lazy developers did in the past.

    Thinking of how people will live or want to livw and improving that is where the extra $$ is made nowadays.

    A badly oriented villa in westminster/balga with insufficient insulation and dark tiles roofs will not be saved by stone tops, larger appliances etc nor should it. For too long developers have put in too little effort in exchange for a buyers hard earned money and thats thankfully starting to change
     
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  17. MTR

    MTR Well-Known Member Premium Member

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    I agree

    Another way which is brilliant is to just employ an amazing architect who understands/knows how to design a floor plan which works, while at the same time reducing sqm, so if you have 3 townhouses a developer can save some big $ here.

    MTR:)
     
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  18. sanj

    sanj Well-Known Member

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    Yup a good designer should be a value adder on a project not an expense, keeping in mind that ultimately the brief and direction still has to be given to them ans not the other way around.
     
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  19. darrenonsnow

    darrenonsnow Member

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    Make sure the brief to the designer also outlines how much the dwellings need to be able to be built for. If the designer is not very connected to real world costs you may find yourself with some nice designs that are not economically viable to build. This lesson alone has cost me many months and tens of thousands of dollars. Yes the designer needs to be adding value, not just adding features and cost.
     
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