VIC Has the sky fallen in Reservoir?

Wasn't actually at this auction but I really can't fault this one:

19 Jackson Street, Reservoir, Vic 3073 - Property Details

$805K? 940m2...It's slightly irregular at the back, but I can't seem to find anything around nearby that suggests it is near powerlines or anything?

I was at Springy auctions at the weekend and one passed in at 700K

 

that's the pocket which hasn't come up yet. near keon park and ruthhaven closer to thomastown which I mentioned earlier to you (you still can get something decent)

It's not near the broadway area shopping, high st, gilbert or gilbank rods or the southerhay or northerhay areas (the oakhill estate - as in oakhill ave, southerhay northerhay goes in the millions)
Previously areas near the summerhill, plenty rd, winter cres, Nicholson st areas was similarly priced but has grown

WIth the new state Victorian planning laws being enforced - general residential zone has now new laws enforcing minimum garden requirements of 35% as well.

 

This area has a lot of 'no more than one dwelling house' covenants so that might explain it...

 

Regardless, even at $805K for 940m2 that is $800ish/m2. I have not seen those levels anywhere in Melbourne for at least a while or even in recent years.

Would have purchased it if I was there...

 

if the convenant can be removed is OK. but if you can't - then that potential is reversed. it is similar to higher zoned but reversed,

you can go to "parks orchard" and get 5000-7000sqm for 800-1mil. but as you can't develop it what's the point?

 

@melbournian What do you think of Dandenong north area for 3 bedrooms houses on over 600sqm around $590k? I am not looking to develop but buy and hold long term. Not sure that area has peaked yet? Also looking at townhouses or apartments closer to Cbd area. I guess in the long run, the house might be a better capital gowth option?

 

Read the news today, appears the boom is over? YAY!

House prices fall again as investment loans drop to lowest level in 10 months

I've been "on the market" since about late 2016 and I've been doing research, I don't know if its a 6th sense but comparing auction's I've attended March, April and now May since early May, the heat and intensity at auctions has really dropped.

Have you looked at Doveton? Suburb next to Dandenong? It;s 25kms out, not served by rail but is cheap and also kind of dangerous LOL

 

townhouses used to be quite in demand if centrally located and before "the blanket neighbourhood zone" which restricted development on those properties in that zone. However that has all been removed now with the new state planning laws.

Dandenong in general is big though dandenong north has its good and bad pockets - you do realize the APEX gang came from dandenong north right? Should consider getting into pockets of dandenong where the pockets are from more higher income demographics. I know there is big sri Lankan community which buys in the areas close to where their communitites live. ireespective, dandneong will grow. it is also where a lot of vic gov investment is being put in.

 

i'll be seeing you putting your hand up in St albans or Reza auctions soon mate .

 

Maybe! hahaha The bowl of Pho is on me if I am in St. Albans and I win...

 

alright you're on!

 

Fresh off the press:

Bell Street bingo: Which northern suburb will be next to get hip?

Interesting facts if you scroll in the middle to the table.

 

@willister thanks for the link. I am thinking Melbourne might become hot again after 1st July with state government boost. I haven't looked at Doveton but I rather not buy there if it is more dangerous than Dandenong.
@melbournian Haha, I am still researching the options in Melbourne and didn't know about the Apex gang. I am based in Canberra and don't know much about Mel other than CBD. Which pockets in Dandenong has higher income earners and no crime? I did hear that Monash employment cluster is going to be around the Springvale area. Is that what you mean by Vic gov investment?

 

I've been in Hadfield since mid 2014 and the article is pretty spot on.
Lots of new builds in the past few years and lots more youngish faces around the area.I run a loop around Glenroy/pascoe vale/fawkner memorial park and i can certainly see a change in demographics around the area.Same thing around Woolworth on West street.
Although you'd still here about some crime every now and then around Glenroy, mostly the West side of it.

PS: When i bought in Hadfield, i was ready to put a deposit on this one below in the same pocket the thread is talking about in case the Hadfield deal didn't go through. I was really put off by the Electricity poles that you could see from in front of the property.
56 Lindenow Street, Reservoir, Vic 3073 - Property Details

 

To be honest, is it me or is Glenroy, Coburg, Rezza still quite "ugly"? I work part time as a courier on Sundays and honestly a lot of the area looks dilapidated.

April, I saw these at auctions:

26 Whitelaw Street, Reservoir, Vic 3073 - Property Details

Sold $886K 01/04/2017 650m2

33 McMahon Road, Reservoir, Vic 3073 - Property Details

Sold 845K 08/04/2017 676m2

21 Henty Street, Reservoir, Vic 3073 - Property Details

Sold $801K 24/04/2017 551m2

Compare this to May:

4 Moore Crescent, Reservoir, Vic 3073 - Property Details

Sold $810K 13/05/2017 620m2

2 Fordham Road, Reservoir, Vic 3073 - Property Details

$747K 06/05/2017 658m2

Is it me or is the market "softening"? The two I listed in May seem better than those sold in April! I'm not sure if the 2 Fordham one had any issues such as being close-ish to public housing but so is the one on Whitelaw street (albeit being a few hundred meters closer to the station)?

Having said that the Whitelaw one needs a bit of T&C to get it up to a livable standard. It was a shoot out by an young Asian couple, an Australian couple and a developer in tradie uniform (who eventually won), it had multi unit written all over it. I think also the Fordham one is on a bit of a slant driving past it in real life but the street seemed OK with units popping up.

I would much rather the two listed in May than April! Of those, I think the one on Moore Street the pick of the bunch (assuming land is flat)...a $30-40K reno would easily get it to rentable standards. Land is slightly slanted on the right and walls appear to be asbestos.

 

I think the top end would struggle as it's reach peak and even at the Springvale one I attend on Saturday, people were really reluctant to bid. If anything the hot markets would be more the up and coming suburbs, those that have peaked might be more of a downward spiral.

Doveton is dangerous, so is Dande, so is Noble Park, check out Noble Park, you'll be astonished by the prices!

 

@willister yes, you are right. Doveton might be a good investment with lower price entry point for me. It is relatively cheaper than surrounding suburbs. Do you think it is going through gentrification? Seems like a lot of old houses are being sold to be redeveloped.

Thanks!

 

@willister , Coburg and Reservoir have a few ugly and industrial pockets but otherwise, pretty green and usually clean suburbs. Glenroy's west is rough but otherwise, the suburb is clean and has plenty of parks and reserves around. Give it a few more years and the area will gentrify nicely I think.
As for market softening, maybe but I would wait until the new Vic stamp duty rules get in and see how that plays out.

 

That's a good point

There is a house near where one of my relatives live in East.
It's had a single dwelling covenant on it..its about an acre on a corner block.
They've been rallying to have the covenant removed. .I assumed they would fail.

A few months ago. Both this one and next door giving it approx 9 to 10k sqm have now been torn down and aged care facilities have gone up
Some forum members probably know where I'm talking about

A few years ago I was having a sticky beak at a house on 600 Sqm nearby. It was asking 1.2m. Medium age house. Nothing good or bad.
A few doors down there was an acre block house with an ageing house. Sloping block on an acre. Listed for 900k and struggled to sell.

Imagine I had bought it and the single covenant removed! ?

 

For a decent sized land (600m2+) there are only a handful of suburbs left in Melbourne that are under $500K, I think there is the Western suburbs like Kings Park, Albanvale, in the North West like Dallas and places like Doveton the South East.

Each has their issues, just a quick gloss:

Doveton - Huge drug issues, if you thought Heidelberg West was bad, Doveton IMHO is worse.

Dallas - Flight path? I think majority of the suburb has building restrictions?

KP/Albanvale - Can be inaccessible, but so are the other two listed above, you'll need to rely on the next suburb's train stations. Deer Park *does* have a train station but it is served by VLine and does not connect to the metro rail, but who knows in future, State government may link it up with the Airport Link and make it connect via the suburban line. Another issue with the West is that the land beneath is mostly rock and Volcano Ash?

Have a drive around in suburbs, look out for hard waste on streets, graffiti and generally get a feel for it.

Heck even suburbs like Dandenong with the Apex gangs and stuff are knocking 600, 700ks you know the market is near/at peak and waiting to at best stagnate or at worse enter free fall. The sentiment I see is a softening market....

I feel as if even in Melbourne there are now slim pickings, there is always a compromise between:

* Distance to CBD
* Price
* Location
* Land Size
* Look of suburb/reputation

Pick 2. Difficult to pick a winner..anyone buying between 600-800k is really gambling on it the to be the next "hit" suburb and turning into a million dollar average. For that to happen I think it needs to be fairly close to the CBD, ability to quickly gentrify and also has green enough.

I think if anyone's budget stretches to $700K-$800K it literally opens up a lot more doors....