Melbourne Flats

Hi everyone,

Just interested to get people's thoughts on the flats market in Melbourne. It seems that prices for a 2 bedroom flat in the inner eastern/south eastern suburbs (10-15km to the city max) can be bought for $500-$600k. These buildings are typically 3 stories and are 15 flats on the block at a maximum. From what I have read these older flats (1970s -1980s build) are still a solid investment due to having a bit of a land component and also being a bit more scarce. For example somewhere like Elwood or it's surrounds have some well priced flats in really nice and leafy streets.

I know the apartment market (the newer multi level buildings with high body corp etc) is potentially over supplied and may not be the best investment at the moment, however with time I imagine they will have their place again.

Do you think the flat market is also a wait option at the moment or does it differentiate itself from the apartment market enough to be a solid investment?

 

These type of stocks will always be highly sought after if you bought the right ones.

 

What do you consider well priced? and what size ?? Its pretty important, I have seen many smaller flats with poor designs, makes a massive difference to end price

MTR

 

Try and buy near train or tram, look for big sizes, so much better than new apartments and don't be afraid to change the floor plan a bit. I've done two wall removals to open up living and kitchen spaces, comes out amazing. Remember your competition is newer apartments, so if you can add the same features you can compete e.g dishwashers, air con, updated kitchen, bath etc.

 

Thanks for the advice Something like this one seems like a good purchase unless I am missing something?

6/11 Albion Street, Balaclava, Vic 3183 - Property Details

 

Thanks, what did it sell for?

 

No worries!
It sold for 510

 

Seems good price considering its around 8 km from CBD. I don't know this suburb.
I best pay attention

 

@Mitch15

I most definitely don't know the Melbourne market well but I have been (loosely) watching exactly this segment of the SE market and I have also seen a couple of apartments (sorry, "flats") sold for prices that surprised me.

The ones I saw definitely needed some modernising work (although nothing that was a serious issue - just cosmetic stuff) but for the location and general size, I was impressed. We were at one auction where we had to seriously stop ourselves from bidding (we were just there for a look-see, hadn't registered or anything).

TBH we aren't looking to purchase right now so I can't say what I would do at the moment, but I do think there could still be some good value flats out there. Of course the layout / aspect / location still needs to be good, etc etc. I also wouldn't *necessarily* expect major capital growth in the next few years (happy to be wrong); rather, my perspective is that when the Melb market moves again (and no, not saying it's finished right now, either...) it will be the larger, older-but-renovated, well-located product that will stack up well in comparison to the now-not-quite-so-shiny-sparkly-new highrise apartments.

I haven't really added anything to the conversation so I'm not sure if there's any value in this post, but oh well.

 

Yes I think the older apartments will be good long term with population growth and have been looking at Melbourne flats however as you stated where Melbourne is on the Cylce clock (apparently) and with the large amount of new stock available there probably won't be much CG for quite some time.

As stated above you may get that from renovating potentially....

Very interested in everyone's thoughts on this topic also

 

@Lil Skater is pretty pro at this market, should get her input ?

 

Haha happy researching!
It's a nice area out there, and close to the city would be appealing for younger professionals especially I think

 

Yeah that's a very good point re the Reno work adding value. I definitely think if you are able to find an older one that needs some tlc and a bit of a cosmetic improvement you could be on a winner!

You definitely added some food for though, so thank you!

 

That's a great tip, thanks!

 

Wow! I lived in Elsternwick many years ago, great suburb. Had no idea about Eruv!

I'm new here, not sure if I can contribute or if relevant but I do think the older flats can compete with the newer apartment market on both size and carspaces plus street parking. Storage is an issue in both segments I would think. Inner NW is not a bad contender, e.g.. Brunswick West $390K 6km from CBD, tram passes through Zoo, x3 hospitals, vicinity Melbourne Uni.. 2/109 Melville Road Brunswick West Vic 3055 2/109 Melville Road, Brunswick West, Vic 3055 - Property Details

I could be wrong, as my names suggests

 

Blah that was the 2015 sold price.
Correction $410k, correct link 2/109 Melville Road Brunswick West Vic 3055 2/109 Melville Road Brunswick West Vic 3055 - Apartment for Sale #126891730 - realestate.com.au

 

Brunswick is a great spot - it has definitely been gentrified now and is definitely worth a look in my eyes!

 

I liked this one as its larger than the norm, I am also interested in Hawthorn

13/174 Power Street, Hawthorn, Vic 3122 - Property Details

 

That one looks good - the courtyard is a big plus.

I don't know that area very well, is it well services from a public transport perspective?