VIC The Market has certainly changed direction - Melbourne

went to unit auction today. a decent crowd of buyers perhaps 5-10 people. All investors though. Passed in to a middle aged lady at perhaps 0-10% below last year price. Whether they negotiated her up after auction, I don't know, but was just surprised at the amount of investors attending unit auctions recently. A lot of people reckon seasonal uptick in Feb. But last year investors were nowhere to be found. This year, lots of people at auction but everyone sitting on their hands.

 

So you gotta think about what the problem is. If you are worried about an event. When we talk election, Royal commission, the events are not the problem. It’s the uncertainty. My argument would be we will stabilize once the uncertainty is out. Which means you need to buy before we hit stability. That’s why it’s sooooo hard.

 

One other anecdote. Two houses I visited in November that I posted on here I was by myself.... went again last 2 weeks. 10+ people at each. Same listing 4 months old....

I was shocked. I was chasing a sweet deal. One sold for 60k more than expected. This isn’t a trend, but an interesting anecdote. Since the other one went about the same price but was 15% better house.

No deal on those ones for me...

 

Im with you there
Have been looking past 6 months but no huge rush hope to have something within next 12 month Bayside

House currently up for auction buyer paid 940 in May 2018 now its up for auction 890-940k

 

They won’t lose too much. That’s an affordable bracket.

 

just saw the result for the Flemington unit. Agents negotiated her up to 403k. Mid last year slightly better condition one sold in the building for 447k

447k march 2018: Property Report for 13/31 Norwood Street, Flemington VIC 3031

403k today: Sold 1/31 Norwood Street, Flemington VIC 3031 on 23 Feb 2019 - 2014899310 | Domain

There you go. -10% on the dot.

 

Unit in Armadale purchased for 415k in 2010: Property Report for 6/55 Northcote Road, Armadale VIC 3143

Looks like it sold at auction today for 400k according to re.com results. Bought the unit 9 years ago and sold at a 15k loss.

 

But this could go on for years and prices keep falling? that is the issue... why buy at the beginning of a downturn? makes little sense... as they say its like catching a falling knife.
When markets turn from bust to boom, properties do not double in one month.... it still takes time.

 

so what that tell you, a lemon???? no idea under 50 sq, can not source finance??? no idea, just guessing, after 9 years... wow

 

I don't think it's a lemon, just a common theme in Melbourne. Lots of units asking/selling for less than 2010-2012 prices. It's a volatile segment of the market that seems to move up and down quite fast. Very hard to track. Was interested in a 1 bedder in St Kilda last year which sold in december for 300k. Agent said similar one sold in the building for 360k at peak. I think now with the uptick in buyers it would get 320k. Perhaps by spring it'll drop down to 280k. Or the incoming rate cuts might push it up to ~350k.

 

Some people hold for 10 years to make 10% gains. Or in some cases lose 70%

 

Asian money
Baalwyn north
Box hill
Glen Waverley

 

Foreigners are out though??

 

Big time.

Chinese areas got most overvalued, makes sense they are coming off hard. I think Captial controls from China are prob strangling demand too.

 

Foreign property investment plummets as tougher regulations bite

 

Yeh. As an investor you should hold out.

As a home there is a limit on how long people like me can put their lives on hold. If i find a place at 20% or more discount where I want I’ll take it. I already held off more than 2 years. There is a limit with the kids growing.

You probably did the same MTR. Since you own in Perth.

 

82 St James Road Heidelberg Vic 3084 82 St James Road, Heidelberg, Vic 3084
Advertised for 970 to 1020,sold for 1020.
59 Yarra Street Heidelberg Vic 3084 59 Yarra Street, Heidelberg, Vic 3084
Another decent price
8 Cleve Grove Heidelberg Vic 3084 8 Cleve Grove, Heidelberg, Vic 3084
Advertised for 1 to 1.15,sold for 1. 13
Maybe buyers are seeing good value in some good suburbs

 

650sqm for 1 mill. I thought Heidelberg was a very wealthy area, right next to Ivanhoe? In Footscray/yarraville 1 mill get only 280sqm last year.

 

Heidelberg has always been at least a class or two below Ivanhoe. No standout school. It does not have the employment/commercial opportunities that Footscray can offer although it is a much nicer surburb.