Melbourne best performer 2016, to overtake Sydney

The front unit which is larger @ $1.2-1.3 million, units 2+3 @ $1.070 million.

These units are on a busy road and on the wrong side of Nepean Highway.

 

wow, never looked at Brighton before, expensive

 

They have to be well located walking distance to shops and ammenities. That presents the issue that these sites are usually high density (DDO8 zone) that makes the land very expensive. Hence they are rare and expensive.
http://www.realestate.com.au/property-house-vic-doncaster+east-121986610
Property above is a perfect example. Approx. 15 year old single level villa on 450 m2 of land 200 meters to shopping centre. The land in that street is worth around $2,000 p/m2. At $900,000 a site no one would ever build this again.

 

A new article about the demand for villa's.

Sales of villa units in Melbourne spike as demand heats up

Villa units in many Melbourne suburbs are increasingly attracting substantially higher prices than flats in walk-up-style blocks from the 1960s and ’70s – and for good reason.

Sales of villa units in Melbourne spike as demand heats up

The next step will be putting a 2nd storey on, which is starting to happen now.
I've a couple that may give good returns doing this, one would end up with 180 degree bay views.

 

are you able to put a 2nd storey if it is in an owners corp? I remember vaguely one owner wanting to do this and was rejected by the rest of the owners. Those workers cottages or terraces in albert park, port, south Melbourne, Brunswick, Flemington, williamstown etc - no doubt lots of people do a second storey.

 

It can be done but you do need to get approval through the OC, I think it may be a 75% approval.

FABULOUS VILLA UNIT WITH POTENTIAL!!

Great position adj William Street Reserve
Front 1960's flat roofed 2 bedroom unit
2 courtyards, garage, extra car space and lots of garden surrounds!
Approved plans to extend upstairs and create new modern 3 bed townhouse!!

Sold 1/78 William Street, BRIGHTON VIC 3186 on 03 Aug 2009 for $560,000

 

Personally I don't see 'value' in Melbourne atm and it looks frothy to me. Similar story in Brisbane and Adelaide of late. General market observation of course.

 

interesting - yes that would be hard one to get that approval. That William st unit is a good one.

 

Here is the adjoining unit, smaller and less land, sold for $800,000 in June and this is
without any approved plans.

3/78 William Street Brighton

Executors Auction offers position & potential.
Sold for $800,000
Sold Price for 3/78 William Street Brighton Vic 3186

 

Every city has some value and opportunity - it is just a matter of finding the ones that can give a gain.

 

This link was posted on another thread, Melb is looking good, go you beautiful thing

Extract below
5.1.17 - News.com

Sydney, your time as Australia’s most sought-after address could soon be over.


homes sold in Melbourne went up an average 6.9 per cent in the year to September, compared with just 3.2 per cent in Sydney, according to the latest data from the Australian Bureau of Statistics.

A DEMOGRAPHIC SHIFT


That’s a big jump, with the median dwelling price in Melbourne just over $700,000, compared to Sydney where it hovers around the $1 million mark.

But then again, Melbourne is forecast to become Australia’s biggest city by 2050, a transition that demographers have been predicting for the past two years.

Social researcher Mark McCrindle said that with the city’s population growth outpacing that of Sydney for several years in a row, it was no surprise that its property prices would reflect this.

“The faster the demographic growth, normally, the higher the prices go,” Mr McCrindle said.

And while the difference in Melbourne’s annual population growth was only about 5000 to 15,000, it was steadily catching up.

“We often forget that there’s only an eight per cent difference in the size of the two cities,” he said. Sydney’s population hit 5 million in 2016, while Melbourne is approaching 4.7 million.

What was drawing people to the city, he said, was a combination of a “good, diversified economy”, with lower house prices compared to Sydney and a reputation as the fashion and cultural capital.

“I think that gives it some good international credibility puts it on the map globally,” he said.

Education was another pull factor, he said, with plentiful options for independent schools and universities.

 

MTR, to answer your OP question...no cake for Melbourne

 

hang on a minute, we still have over 11 months to go in 2017, bring back the numbers in December 2017 and I will be eating cake

 

that's a very interesting graph. as can be seen units are the lowest in Melbourne due to having so many dog boxes at the moment.

I know of people buying OTP apartments in chatswood and eastwood and yet making 200-300K return in some circumstances upon completion in Sydney hence the demand for apartments or units still is high in sdyney with growths like that.

 

beware of graphs IMO, look at what is happening on the ground, and where the oversupply is in terms of product, graphs will never tell you the full picture, we all know this. Also we are talking medians, not going to be precise.

 

Hang on...those are corelogic stats.....The same guys who are telling us that Darwin outperformed Syd and Melbourne last quarter...(impossible!)...The reserve bank has stopped using them as well. Approach with caution.

Over the three months to December 2016, the best performing capital city was Darwin, with a rise of 5.9 per cent,

Home prices in capital cities surge nearly 11pc in 2016 - ABC News (Australian Broadcasting Corporation)

 

yup graphs are all larger macroeconomic views. Brisbane seems very low though in those graphs

 

Oh your post is talking 2017, not 2016

 

oops, sorry Rich.. yes, be interesting to see what happens. I never expected in wildest dreams that Syd would hit over $1M, so lets see what happens. Of course it could also go the other way

 

Yes..even though I own in Brisbane....the large majority of Sydney investors there at the expense of Melbourne.

Based on the numbers I have Melbourne significantly out performed Brisbane...that may reverse in the next 2 years.