Melb eastern suburbs units on small size blocks, would you pay this much?

Discussion in 'Where to Buy' started by Mabel, 21st Mar, 2021.

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  1. Mabel

    Mabel Member

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    Within the next 12 months I’d like to buy a PPOR in the eastern suburbs. Anywhere between Nunawading and Croydon but I’d consider surrounding suburbs like Heathmont.
    My preference would be either Mitcham or Ringwood and it will be 3br unit.
    I was looking at the auction results over the weekend and it seems that a small unit on a small block of around 250m2 is fetching 850-900k.
    Excuse my ignorance but this really surprised me. We’re not talking ocean view luxury units in prestigious areas.
    Would you pay this for a unit on such a small piece of land?
    I understand that people can and will pay whatever they want but I’m confused!
    Here are 2 examples. One of these is very well presented but you don’t get much bang for your buck!

    https://www.domain.com.au/5-50-creek-road-mitcham-vic-3132-2016839134


    https://www.domain.com.au/1-5-teague-close-nunawading-vic-3131-2016773598
     
  2. Hamish Blair

    Hamish Blair Well-Known Member

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    If you come in a bit closer to the CBD, around Burwood, then you are talking $1.1m+ for something similar. Usually two storey.
     
  3. supersam80

    supersam80 Well-Known Member

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  4. GX1

    GX1 Member

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    Yes OP, it seems the market has priced some properties very interestingly. I assume the type of people paying these prices for such small parcels of land are the type of people priced out of neighbouring suburbs of Burwood and Box Hill (slightly closer to the CBD). Happy to be corrected if I am wrong.

    If that was my budget, I would not be purchasing those types of properties.
     
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  5. GX1

    GX1 Member

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    Gosh - yes I would much rather live in Camberwell than Mitcham!
     
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  6. Tillie

    Tillie Well-Known Member

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  7. Harris

    Harris Well-Known Member

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    I am 99% sure, at the current growth rates, these very units will be c$1m in 6-12 months - inner and middle ring is already showing 25% increase from 6 months ago - all auctions/ latest sales data indicating that. Outer-middle & outer will respond to the expanding gap and so those units will fetch a mil +

    You should check out "Melbourne Market is Hot" thread to get an update on how quickly values are rising. Link here:
    Melbourne market is hot
     
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  8. Mabel

    Mabel Member

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    Can I ask where in Melbourne’s east you’d buy with that budget? Not interested in rural.

    I’m beginning to question my location!
     
  9. Mabel

    Mabel Member

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    Something that’s added to my intrigue is that I’ve heard so many times that the real value is in the land. Places like this are not likely to ever be able to be extended.
     
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  10. GX1

    GX1 Member

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    I'm not one of the experts here - but are there any other requirements you have, besides being in the East?

    As I mentioned before, I'd be purchasing the Camberwell properties any day over the ones in Mitcham or Nunawading. I would have thought the value of the land for the Camberwell properties to be worth more than the land value of those two properties you listed.

    The only way I can explain the discrepancy is that those who are being priced out of Box Hill/Blackburn are looking to the next suburb further out. These properties may appeal to a certain type of demographic that thinks differently to the one I belong to. Land size may not be such a priority for them.

    I'm caucasian, have lived in Melbourne my entire life and am only in my 30s - for a PPOR I'd be personally more keen on suburbs near good schools and (since I work in healthcare) preferably near good hospitals. I'm not sure that Mitcham and Nunawading are superior in those respects to Camberwell.

    Are you specifically looking for a single storey dwelling? Were you looking at Mitcham and Nunawading because of family/friends/ties to that area? Is there something else about these suburbs that appeal to you? Do you need to be near a train station?
     
  11. Triton

    Triton Well-Known Member

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  12. Harris

    Harris Well-Known Member

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    o_O
     
  13. Mabel

    Mabel Member

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    I like area as I grew up in the east my whole life. I prefer that it’s an established area with lots of green. Not wanting a double storey, I can’t stand all the new double storey townhouses that are being plonked everywhere and all so close to each other. Horrible.
     

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