VIC Melbourne price correction - post examples

Also how about this one?

https://www.realestate.com.au/prope...ep-pdp|sold-pdp:property-history-cta#timeline

 

The fact someone paid 2.5 for that makes me physically ill.

 

Lol u havent been to china u aint seen nuthin yet. Heaps of ghost cities and gov infrastructure everywhere. All part of the credit boom that has been happening there and spilling over to the test of the world.

Buying frenzy will give way to selling frenzy. When that happens theres very little anyone can do. Same happened in japan 30 years ago. History repeats.

 

Is it just me or there just seems to be a 80k to 100k drop on average in most suburbs if I could use a broad brush and paint a line?

A lot of the people pre-correction had the simplistic thinking it couldn't happen to cheaper suburbs and majority of the thought lower prices would one day catch up the the more blue ribbon suburbs.

 

550 to 450k is a huge drop. Is werribbee really that bleeding

 

Possibly I'd say everywhere. Back in early 2017 when I was attending auctions (semi serious about buying) ex commission houses on your 600m2 of so blocks in Heidelberg West, Heidelberg Heights and Reservoir were easily going into the 800ks now you see them in the low 700ks...well only from what I've seen online.

At the time my thinking was pretty simple and in hindsight wrong. Like many others I thought that the cheaper suburbs would one day catch up with or at least close the gap with the more expensive inner East. When there was a collapse or correction I had estimated that the above mentioned suburbs or say a St. Albans would have smaller corrections but I suppose this is wrong.

My 2 cents based on what people have said here is that they're surprised as to how quick things have dropped. A relative of mine was lucky enough to escape the peak (she actually was about to buy but got outbid in Spotswood) then in turn purchased in early 18 (Feb?) thinking things have died down and prices were reasonable. I think on paper she's made a $50k loss based on a sale recently in the same street roughlly 10 houses away.

I balked and suppose I dodged a bullet but still not interested in plonking any $$ for now. My "drug" now is a nice tropical holiday.

 

More like 50k drop on stock up to 550k which I'm following. But I'm guessing those that really needed to offload quickly have sold for much less than expected which is only a few places with bigger price drops. Last year werribee was on fire, even up until May this year agents say, but now prices are way off peak prices. Places taking longer to sell, auctions have turned to private sales. Need to wait and see what happens over the next few months to see if it continues or settles, but at the moment it seems buyers are just waiting.

 

I would say around 10% drop everywhere from Cranbourne to Werribee. Million Dollar suburbs dropped a bit more around 15-20%. Interesting time ahead!

 

Have a good friend who is trying to sell a property in 2nd tier city (it's still twice the size of Syd/Mel) and having really tough time. I had told him multiple times that risk is too high and return to compensate for the risk is just not there. But he wouldn't listen. Crazy (not rich) asians.

 

Went to 8 places today. 4 of them advertised with a range, the agent straight up told me the price to get it for.

For example. House listed at 1.3 he told me just under 1.2 would get it done.

For a house 1.1-1.25 he told me 1.1 would get it done.

That’s new.

There was also a place listed at 1 and I told him I had no interest at all. He asked if I did at 900 and I said no still. That one might be hard to move. It had lots of flaws.

 

https://www.realestate.com.au/property/23-kingswood-rise-box-hill-south-vic-3128

will sell for May 16 price ($880K) or most likely less

better comparison to show the market is this (same age and size, facings)
29 Kingswood Rise, Box Hill South, Vic 3128
1.028M sep 2017

12 months a drop of 15% and still not sold. In a bit over a year will be down more than 200K easy on 1M outlay (I know its not the same person but might as well be) if include stamps and selling cost.

Good real example of the pain being felt on the ground

 

I attended 3 auctions today in Wheelers Hill. All got sold and price were as expected i.e., around 10% fall from last year's peak. Looks like the sellers are revising their expectations with the market behaviour.
Also attended one double story home in Noble Park North. Agent told me that that the property is on the market since May. It was offered $775k in May but the seller rejected. In June, they have had another offer of $760k and again rejected by Seller. No offer since then so I asked if they are interested to consider $700k now ($10k down/month). Seems not interested but may be very soon if they want to sell it. FYI, I was the only person on the inspection.

 

This is making me excited

 

Can I ask why. If they drop another 10% will you buy? If it’s a ppor I’d understand, but even 20% price drops don’t make sense if there’s no growth for years. Best case is low 2-4% rental returns which is crap.

 

well, ive got heaps of friends who didnt/couldnt buy in the areas they wanted a PPOR in , and are now waiting and looking to buy

I dont have a PPOR, and will look at one too,

also growth might be minimal for a few years, but timing wise, in terms of cycle, you cant really lose long term,.if I can get a PPOR that can perform like an IP, double winning!

 

I totally understand. We're in the same boat too. We have just sold our PPOR last month and now keeping an eye on the suburbs we always wanted to go. Hope this will work for us!

 

Yep, looking for a PPOR as well. The sharper the drop the better. Seen some decent deals near St Kilda as of late.

 

I honestly think St Kilda could become one of the inner Melbourne suburbs most destroyed by development.

 

“Overseas workers will be required to settle outside Sydney and Melbourne for five years as part of the Morrison government’s plain to address population growth.”

Is this one of the reasons deterring buyers?

 

Update on this debacle.. still advertised in the $460-$490k, but only offers of $400k and $420k. Trying to get agent to drag them up to $440k, and then eventually $450k. Very pessimistic. Reminder: bank Val of $553k 12 months ago. Told the agent I might have to shop the property to other agents in the new year, exclusive authority finishes in 8 days.

#suckingballs