VIC Melbourne price correction - post examples

My observation is that the sold price now is often around the minimum quoted price shown in SOI or sometimes slightly below.

 

Yes, I think that's the case in general but there may still be some lags & diff between seller vs
buyer expectation.

By assumption, I err on the side thinking that most selling agents still follow their clients in
ambition and optimistic vision reflected in the SOI, which when looked at by fence-sitter like
myself, does not paint the reality of where the deal may most likely be struck. Many done deals
have no prices disclosed and/or SOI pulled fairly quickly after sales.

Cheers,
FXD

 

That's not a 'price correction', that's just someone that paid too much, cant get finance for a redevelopment and is forced to sell because they cant hold the property. I've seen this happen even when things were booming.

Is the same Agent selling it?

 

No, different one

 

Missed opportunity by the Agent

 

I see a lot deals in western burbs.
Mmmm mmmm.


465k land and 22 sq build.
540k price on build
450 per week as potential rental.


Mmmm mmmm


Regards

 

Asset confiscation/ Mortgagee in Possession sales without any interest rate hike

 

@ashish1137
540k is turnkey price of house built on land worth 465k?

 

Sold at auction which means it was likely at or at least close to market price assuming the under bidder wasn't far off

 

I think he means $465k is the total cost of land and 22sq build. End product value is $540k. Estimated rental is $450.

 

400sq land is approx $300-$330k.
Build a 22sq house is minimum $220k.
total cost min $520k not $465k.

 

I am referring to the other guy's post (guessing what he means) not posting about a specific deal. And you do not need 400sq land to build 22sq home, smaller (and cheaper) land can do it too. And $300-330k for 400sq land in outer western suburbs of Melbourne is not a good deal to jump in. It is the peak level (or close to). I can find plenty of blocks of land way cheaper now if I want.

 

13A Knutsford Street Balwyn sales history:
- Sold $4,950,000 in Jan 2013 (13A Knutsford Street, Balwyn, vic - Property Sold Price)
- Recently sold around mid five million mark

No correction there and result confirms what few agents have been telling me, good burb, good
block, great location, top quality build (architect, builder, landscape, etc) still fetch top dollars!

How is it possible to break into these gems for long term growth without some help from
PowerBall

 

thats a 0% return in 6 years
Assuming it sold for 5.5mn and 10% is buying selling , holding costs.

(Melbourne on an average returned close to 60% at its peak from start of 2013)

 

I thought market price in the context of this thread or in general (how we track price trend)
only accounts for the actual contract price and not other considerations.

However, I do agree with your comments when all those misc costs or TCO is concerned, there
is 0% return if not worse.

 

Places that cost more than 3 odd mill have no connection to the normal market

 

Melbourne blocks dumped on gumtree:

7NEWS Melbourne on Twitter

 

Same story here Desperate families are selling housing blocks on Gumtree in property market downturn | | Express Digest

With this ludicrous comment:

MAB Corp, which is developing Merrifield Estate, said discounted prices do not affect the value of land.

‘Purchasers have complained that blocks of land at Merrifield are now being sold at a lower price and this is affecting their valuations,’ MAB Corp chief operating officer David Hall told the AFR.

‘That this is not possible as valuations provided by their financiers’ valuers are determined by comparative sales in the catchment and that valuation practice is to exclude “off-the-plan” sales evidence.

 

Dumbest comment of 2019,
you couldnt even make it up