VIC Melbourne is hot 2022

At least the weather is today.

 

True. And for the next few days too.

 

Heard from property sales are cooling off.

 

38 degrees today

 

Suck on that queensland!

 

Yup. Stagnate until students and immigration back to normal.

 

Melbourne darling;



Vs Brisbane Darling;



Not even a fight actually…

 

Seeing some action in my neck of the woods. Quick sales. This one 10pct over esr. https://m.realestate.com.au/sold/property-house-vic-surrey+hills-138243594.
This one been languishing for 2 years passed in at 2.6 in December now 2.7 .https://m.realestate.com.au/sold/property-house-vic-surrey+hills-137883938

No idea if they got the asking price of 2.7m plus for this. if they did massively overpaid for land only. https://m.realestate.com.au/property-residential+land-vic-surrey+hills-203164146

Either way, melb east not looking weak. Early days though ....

 

Yeah depends on area...some not doing well..some doing exceptionally well...go figure. I do think it is cooling though.

Some upside on units...they are incredibly cheap for major city....stuff under 450k in a lot of suburbs close to the city in good condition.

 

I have been actively pursuing Brisbane for my investment of 700k.. The market in Brisbane is insane and very difficult to enter. Its almost impossible to get something with real value.

I am not aware of Melbourne and plan to explore my options.. The biggest problem with Melbourne is rental yield is very poor compare to Brisbane . I plan to buy and hold for next 5 years.. Any pointer on suburbs please..

 

A yield of 4.5% in Melbourne is equivalent to a 5-5.5% yield in Brisbane for a couple of reasons:

1. Water bills are about 30-40% cheaper per qtr.
2. Council Rates are about 40% cheaper
3. Insurance is about 20% cheaper
4. Trades about 20% cheaper.
5. Management fees are about 10-15%
6. If Qld implements new Land Tax for interstate investors and you own a lot outside of Qld...it will cost you even more to own in Qld.

Only thing is inspections are about 600-700 per annum

 

Melb bayside is still rocketing ... Frank & surrounds up 5% again Dec quarter and c35% in this cycle.

Kew, Camberwell, Mont Albert & Glen Iris are also selling fast and no decline in any sales values compared to the peak of nov for houses/ TH.

Apartments / units are struggling and I have seen a lot of units around Doncaster selling in Jan at the same value or lower than they last changed hands in 2015-2016. Saw at least 6 of them resold in Jan below their 2016 peak.

Rents have started to lift and vacancy rates are stabilising for units but still a fair way to go - I expect this to slowly change throughout this year.

 

Agreed. Regional QLD is even worse - I picked up blocks of resi units in Cairns & Rocky at approx 10% gross which works out to be just over 5% net. Would have been close to 7% if in mel.

 

Point Cook - Alamanda School zone is unstoppable!

 

Yep...Cairns rates and insurance is atrocious. Development costs on the coast is ridiculous as the building needs to have additional hurricane proofing..which adds more to costs.

 

2022 Jan listings are falling again. Melbourne is -11.5%. New listing - 29.3%.

 

Thanks Nando where did you source that info?

 

SQM RESEARCH.. less listing, less stock, which means less supply... if demand remains same with less supply, price goes up.