VIC Investment St Albans 2019 Thoughts

Hi all,

I have been reading up on a few of the threads in relation to zoning and developments and have seen Reservoir and Sunshine mentioned quite frequently. I am more interested in St Albans as I live there and more recently purchased a property to live in. The neighbour recently received approval to build a duplex on 540 sqm in GRZ. I'm a newbie and thought 540sqm in GRZ would be too small for any development but this piqued my interest as I could afford an investment property about that size.

In particular I have been looking around Perry, Foxton and Lyall St as they are relatively close to the town centre and cheaper than properties just on the other side of Main Road East.

I'm keen to hear about peoples thoughts on that area, and whether its feasible to put 2 to 3 townhouses on a 540 sqm block in that area.

I'm slightly biased myself as I live in the same suburb.
- Pricing - I've been to a few auctions in St Albans and definitely feels like less bidders in the market.
- Infrastructure - Train, Sunshine Hospital, Vic Uni, Western Ring Road
- Development - ??? Will definitely need to employ an expert to run the numbers but just curious on potential. Is it possible to have 2-3 townhouses on 540 sqm in GRZ?
- Zoning Changes around St Albans Station - Most likely none. Is this correct? Side point, I noticed while reading the planning documents that they are proposing to rezone some areas around Sunshine Hospital.

 

How soon do you plan to subdivide?

Melbourne market doesn't offer the best yields right now and prices are still on decline at this point. Probably better off looking interstate. And also comes down to overall strategy/goal

 

Probably looking at a timeframe of 2-3 years. St Albans in particular does not offer the best yields at the moment.

29 Beaver Street, St Albans, Vic 3021

This recently sold for $625k. Was at the auction and surprised it passed in at the $600k mark hence why I was interested in the particular area.

 

I'm biased because I live in the area so just wanted to hear others thoughts on the area to temper my optimism.

 

Backyard investing can only take you so far my friend..

In current market, I think better deals can be found in states such as QLD where small projects like these can be done, holding cost is lower and capital growth is positive!.

 

Would be interesting over the coming weeks to see how the St Albans market holds up. Strength would appear to be around properties located close to Alfrieda Street and the Sunshine Hospital.

Keeping a keen eye on 10 Oleander Drive which goes for auction in a few weeks.

Saw some great results towards last year with 18 Camara Street selling for 735k. There have been however a few languishing around for a few months eg 47 Stradbroke Drive (passed in for auction at 580k and it would be nearly 6 months on the market by my recollection).

 

Another reference point:

17 Glendenning St - Sold Feb 19 735k
15 Glendenning St - Sold Jun 18 850k

Same block size and development potential, what a difference 7 months makes.

 

Cast your eye to Albanvale. it is the same as Deer part or St Albans, except the block size - little further away from the St Albans station.
4 months ago 3br 1bath on 550spm were selling for $540k. Now 4bed 2 bath and brick garage selling for $520-$530K on 550+sqm. These should bounce back next cycle if you cant get into St albans or Deer Park bigger blocks.
I am holding 1 from 2009. Bought for 285k. Revalued in Oct 2018 for $530K... Was a dud, but come good.
Its time in the game that counts if you dont have the capital to obtain an optimal position..
Its not sexy, its just time!

 

Does anyone else think Deer Park is undervalued given block size, housing cost and proximity to city? Even in the current declining market?

 

2 Walmer Avenue - 800sqm will attract some developers. Alot of the larger lots have been transformed into townhouses/units. 2 Walmer Avenue, St Albans, Vic 3021

Deer Park has some nice pockets but proximity to public transport is my main concern.

 

Mate I totally agree! I think Deer Park will have some serious growth in 5-7 years as it's neighbour suburbs are getting a little too pricey. Everything around it has skyrocketed so it has to be next..

 

Went to the auction at 10 Oleander Drive over the weekend. Rain cleared up just in time with bidding by 3 younger couples. Property passed in at 635k against a reserve of 700k o.0. You gotta be kidding for 700k but i thought 635k was a fairly strong result in the current market, surprised the vendor didn't take the offer.

 

Vendors still think we are in 2017.

 

Not all vendors need to sell, if I didn’t get the price I wanted I wouldent be selling.

 

10 Oleander is listed as sold. Wondering what it sold for.

On another note, times are tough with land and house packages out north west. Wonder how Tarniet ain't fairing any better.

FREE LAND IN MICKLEHAM | Land For Sale | Gumtree Australia Wyndham Area - Tarneit | 1214635049

 

The median apartment price in St Albans grew 17.2 per cent to $422,000 followed by Frankston (14.1 per cent), Pascoe Vale (12.7 per cent), Bentleigh East (12 per cent), Carrum Downs (11 per cent) and Werribee (10.6 per cent).

"St Albans is still very close to the city but missed the growth at the time of the boom," Ms DeBondt-Barker said. "It had a stigma attached to it, but some some first-home buyers are saying they will move in and make it nicer.

The Sydney and Melbourne suburbs defying the property downturn

With Cedar Woods developing St.A it will only increase the appeal. Lots of old houses being knocked down to build townhouses. https://www.staliving.com.au/

 

A lot of people have to sell as cannot afford repayments anymore and due to life changes.

 

This looks to be underquoted massively. Proximity to station and relative to recent sales it would be on par with a townhouse.

152 Power Street, St Albans, Vic 3021

 

Where you should have bought a house in Melbourne five years ago

Townhouses still holding up. Was at the auction of 2 Walmer Avenue, St Albans, Vic 3021 over the weekend. Wasn't much interest at all. Passed in on one bid of $600k. Negotiations didn't go well with agent commenting vendor was looking at $1.1m. Gotta be dreaming. $700k or just under would be fair in this kind of market.

 

I was in the auction for 16 Browne Avenue, St Albans, Vic 3021

It was started with 490k and If my memory serves well, there are 6 bidders. It is finally sold around 600k.

OTOH, 29 Hook Street, St Albans, Vic 3021 this is passed in on the same day. I was there until 570k. Came to know from other agents that the owner is looking at 600k.

Is these the current trend? will it go up drastically soon?