VIC Outpriced from Glen Waverley and Mount Waverley, what next?

East still has some ways to go. Think about all those wealthy students living in apartments/townhomes or school zone hunters from other suburbs that now need a family home due to cov baby boom!

 

Market is crazy hot, this property in Wheelers Hill was advertised as 1,150,000 to 1,250,000, sold at auction in excess of 1.55M+
https://www.realestate.com.au/sold/property-house-vic-wheelers+hill-135111790

It was a rainy day and people were bidding as if there is no tomorrow. Market is increasing week by week for sure. I am caught in between sitting it out or jump in and catch the moving bus by paying a premium of ~50K-150K more.

What would be people's thoughts/advice/comments?

 

There's been several like this in Wheelers Hill recently, did you see the Jells road auction video? Similar story, several hundred K over the reserve for a property on a main road.

I genuinely don't get it, much better value in almost every adjoining suburb.

 

Yes I have seen that, went for 1.6M+ for an unrenovated property, its the FOMO effect and belief that WFH is the new normal

 

Though I believe very few can WFH100%, If enough people believe WFH is the new normal and should be, then it will be, as people will be pushing more work flexibility, working from home 2-3 days a week , and the employers will have to accommodate it.

I am also in the market looking for property in the similar areas to yours, except I don’t have any school zone requirement. But I also have friends looking into the school zones (kids are still little) . We have not felt the FOMO among the buyers yet ( except the parents who must buy soon get their kids into a particular school zone by a certain time)

I think the problem is the supply, especially for houses.. I checked the auctions Dec 2020 vs different months in 2019, the supply is much lower in Dec 2020 and still very low in Jan.

When the supply will increase? Hard to say.

 

It's not a good feeling for a buyer indeed but it sounds about right when people are paying $1.3m+ for a new townhouse in Glenny.. the equivalent home in glen would push 1.8m+.

 

I will echo that. Waiting for supply to increase is like waiting for stocks to go up. Actually, the share market is probably more predictable these days.

@tvadera , are you open to other areas?

 

Sad to say, but if you look at how mad prices are in nz now there seems no reason aus wont follow suit, it already has in the regions and now melb has opened back up.......
I own in surrey hills, not really anything decent for sale, could change i guess come February. The median house price has dropped funnily enough, but not sure if that tells the story.

 

Try something around Vermont that covers both Vermont Primary and Vermont Secondary. Both are extremely good schools, Mitcham station being accessible too.

 

Genuinely interested query here.. apart from schools in the GW and MW zone being good, what’s the big deal about living in the zone? Sounds like people pay “overs” on the purchase price of a property so they can go to a school where they don’t have to pay exorbitant private school fees. But the avoidance of private school fees is eliminated by the hundreds and thousands of dollars by over-paying for a property

Live outside the much vaunted zone, save some $$$ and use the saved $$$ to send the children private?

Like I said, genuinely curious as my children are only at primary school level, and we live in Blackburn where zoned schools like Blackburn High (ok for arts and music apparently), Box Hill High (mixed reviews), and Forest Hill Secondary (been told avoid at all costs) are the local catchment.

 

I don’t need the school zones but I know plenty of who wants it... the conclusion is rich people won’t bother about school zones, but unfortunately, not many people are not rich enough to not bother.

1. People know good schools don’t guarantee kids will do better financially in the future, but people just love their kids and want to give the kids a better start in their life - to be a good school
2. Many people have done the maths - how many kids from born to finishing high schools- how much private school will cost them vs how much a public school will cost them, good public schools will still more affordable for these people
3. Good School zones generally coincide with other factors eg good neighbourhood, park, decent public transport etc, it is an eco system strengthening other factors that make an area more desirable. —many people buy in areas with good schools but don’t need them just coincidence- I know people who want to move to Box Hill when retired from other Whitehorse suburbs...
4. Because of the strong demand of school zones + point 3, and the supply is always more limited (vs you can just buy in random areas then private school), the people are confident that those property are good at holding values — which have been tested during melbourne’s worst lockdown period...

 

We Asians just love to stick together. GW has great vibes, what’s not to like. Apart from all the other positive factors.

Also from fengshui perspective it’s great, high ground, good water. It will stay desirable for Asians...

 

Interesting insights! Keen to understand more about how to assess fengshui. Any books or websites you'd recommend?

 

Hey guys. What's the difference between Blackburn and Blackburn North. Why is there almost a 300-400K difference in median price between the two suburbs? I get why Nunawading, Forrest Hill , Ring wood is cheaper. But why such a big difference between Blackburn and Blackburn North?

 

Honestly I don’t know the details but that’s what I heard from the experts. For Melbourne, North East like Templestowe, Doncaster, whole Eastern until Mt Dandenong is great. Brighton is also good, at high ground facing the sea. Many parts of Mornington Peninsula, like where Arthur’s Seat is, supposedly quite perfect. But most in the West, Northwest of Melbourne will be meh.

I haven’t read any of the books but many of my friends read “Feng Shui for homebuyers, Exterior” by Joey Yap

Get in good position, be successful in life. Be it happiness, health and wealth with peace of mind. That’s the motto lol

 

Like you I am not really a believer in public school zones.

However, many people do value them. So does one actually "overpay" if the price of the home remains elevated into perpetuity due to the school zone? One would need to have a view that homes in the less popular school zone areas surrounding it would perform better in the long run on a total return basis versus those in the school zone for the overpaying hypothesis to be true.

This is not factoring in potential the intangible worth of a better education/richer social circle.

 

yes I am open to other areas, which ones are u recommending?