Melbourne Flats

1/61 Gillies Street Fairfield Vic 3078 - Unit for Sale #126501270 - realestate.com.au

This is an interesting one. Only a one bedroom and noting really great about the unit. But the underlying land of the 8 units is zoned Commercial 1 zone.

 

I'm not too familiar with this area, what do you imagine this would sell for and rent?

Looks like a nice flat though!

 

Unit 3 in the same complex sold a few months ago. Best price guide would be to find what that sold for.

 

I just had a look, it sold for $310k

 

I personally think the large house sized Art Deco apartments are good value at the moment. I had one for almost 10 years and it really didn't grow much.

Their prices and yields have been suppressed by all the new stock, although to own and live in they are far superior. Also much more likely to have more land, fewer in the block, courtyards, quieter locations and so on. Little depreciation though.

Are they a good investment? It's hard to say. I personally thought people would value these over the new stock (and start to look to them when they realise houses are so damn expensive but they still want to own in an inner area) but it doesn't seem to be the case.

 

It seems like they have been still for a while price was, but I hold out hope like you mentioned that over time people will like them due to size and bio quality

 

I think inner city flats led the way in the Melb boom of 2008, prices were soaring. I guess its timing, this product just does not have the same demand in this boom. More bang for your money in the burbs?

Perhaps this will change and price point will once again make it attractive, there will always be buyers wanting to live close to CBD.

The oversupply of new apartments has not helped... just my opinion could be wrong.

MTR

 

As touched on Balaclava is known for Jewish community (enclave?) and is an older more established quiet suburb still close to St Kilda Rd business precinct & CBD. Train station is raised/elevated and is above the main shopping strip on Balaclava Rd which is popular.
Located on the suburbia (ie not beach side) of Nepean Hwy but close enough for easy access to Elwood beach or St. Kilda restaurants / nightlife etc.
Also close enough to Caufield Park (huge) & the uni at East Malvern / Caufield North on Dandenong Rd in the opposite direction.
A suburb that flys under the radar a bit and I believe could be a good spot if you could find something that matches your strategy.
Good luck!

 

That is my thoughts exactly on Balaclava - its only the other side of brighton rd and is a quick drive/walk to the beach!

I think it has the pro of being a little closer to chapel st than elwood which is important for the younger market, as I imagine they would be the main market for these apartments.

You can pick up a 1BR with ground floor and a nice little courtyard for $400k and get a decent yield on them - may be slow capital growth initially but they seem like a long term winner!

 

How are you finding your investments in Melbourne? I'm from Sydney as well and agree with your comments. I'm starting to get attracted to Melbourne apartments for the same reasons as you.

@Mitch15 Did you end up buying an apartment or unit?

 

Buyer beware:

Residents' insurance costs quadruple after builder coats complex in flammable cladding

 

What about Abbotsford anyone???

 

Yep, agree. Certainly something to check before buying.

Not familiar with Abbotsford. Is it for investment or ppor? Looks like lots of new apartments in that area. Given similar price range in some of the apartments, how does it compare to st kilda or prahran?

 

Not sure? I was really keen no what Melbournites thought of this suburb, not really researched it yet.... will do though and report back

 

Lots of trendy bars and restaurants in Abbotsford, and close to some great park land along the Yarra but there has been a lot of new developments there - especially along the Yarra.

Personally for Melb flats I like the areas that are a little further out and have predominantly low rise buildings (ie/ Armadale, Balaclava, Elwood, Cremorne) just to balance out the supply piece.

 

Why have areas like Balaclava, Elwood, etc escaped those high density developments?

 

We initially set up our Business in Elwood 20+ years ago on Glenhuntly rd.
Have moved twice since.
There are occasional flooding problems on ground floor flats on certain streets off Glenhuntly rd towards the Elwood Canal (not the other /high side of the road).
You might be on the first floor so think your fine.

.....but foundations don't start on the first floor.
Building inspections are critical imo as are sinking funds.

Otherwise nice area, lot of weirdos, so I fitted in just fine.

 

Sorry I can’t give you defining insight, I would think it would either be council restrictions or developers not building the high rise product there as it would take longer to sell there than a South Yarra/abbotsford