New estates affect exisiting suburb stock

Discussion in 'Property Market Economics' started by gach2, 2nd Feb, 2020.

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  1. gach2

    gach2 Well-Known Member

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    Was just looking at cragieburn Victoria and was wondering opinions of how new estates affect price on exisiting stock

    For example
    Seeing h+l for 3/2/1s on very small (200m2) going <400k
    while properties in the exisiting side of town are 350k-400k for 2/1/1 townhouses without their own road frontage

    I can see the new stock from the map looks like its in the middle of nowhere and the existing side of town has shops and train station servicing but would the new development seem more attractive?
     
  2. Someguy

    Someguy Well-Known Member

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    New development may be more appealing to renters, something nice and shiny and likely at a lower price if supply all comes online at once
     
  3. ashish1137

    ashish1137 Well-Known Member

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    The suburb has gone up significantly.

    You would be paying premium to get anything new.

    In a way, that does push the prices in existing stock. Rent demand on existing stock reduces, thereby dropping rents as well.

    Regards
     
  4. Triton

    Triton Well-Known Member

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    Has it? I know people that have been trying to sell in Craigieburn and Mickleham with no luck since there is so much stock of the same type of house
    102 Royal Terrace, Craigieburn, Vic 3064 https://www.realestate.com.au/sold/property-house-vic-craigieburn-132262410
    104 Royal Terrace, Craigieburn, Vic 3064 https://www.realestate.com.au/sold/property-house-vic-craigieburn-128935506
    163 Newbury Boulevard, Craigieburn
    Sold 163 Newbury Boulevard, Craigieburn VIC 3064 on 01 Apr 2017 - 2013482601 | Domain

    Sent via the Domain App

    147 Newbury Boulevard, Craigieburn
    Sold 147 Newbury Boulevard, Craigieburn VIC 3064 on 16 Aug 2019 - 2015406583 | Domain

    Sent via the Domain App
    155 Newbury Boulevard, Craigieburn
    Sold 155 Newbury Boulevard, Craigieburn VIC 3064 on 16 Nov 2019 - 2015768895 | Domain

    Sent via the Domain App
    Happy to be proven wrong, as it can only be a good thing for property investors in more expensive markets
     
    Last edited: 3rd Feb, 2020
  5. sash

    sash Well-Known Member

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    It depends what you bought/built the house for. For example I completed a 3x2x2 house for 300k in Mickleham...I know I would get North of 470k....it is in the Trillium estate.

     
    Last edited: 3rd Feb, 2020
  6. Triton

    Triton Well-Known Member

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    Ur reply got hidden in the details there. Sure, applies to every suburb, you can still overpay in a down market. But just having a quick look at Craigieburn sold prices, and talking to friends, it's still below 2017 peak prices.
     
  7. sash

    sash Well-Known Member

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    Agree....the prices have not caught up to the peak yet....but it may recover.

    Rents seem to be solid.
     
  8. ashish1137

    ashish1137 Well-Known Member

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    I am comparing to 2016/17 pricing. I would not touch the area now. There are ample other growth options. My last purchase in the market was early 2017. after that, recently (3/4 months prior).

    There are deals lurking around. Try to look across, next suburb, real estate, remove notions, put yourself in the shoes of an average earner to see where they can and would buy.

    Follow them rather than people around you.

    But follow your own strategy and see what works for you.

    Regards