VIC Thoughts on outer SE suburbs (Cranbourne, Pakenham, Carrum Downs, etc)

Discussion in 'Where to Buy' started by Stan, 5th Jan, 2017.

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  1. Stan

    Stan Well-Known Member

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    What are your thoughts on the growth of Melbourne's outer SE suburbs like Cranbourne, Pakenham, etc?

    Why do you think it has been growing quite quickly considering it has a ton of land behind it? Do you think the growth will keep going or will it slow down?
     
    Stan, 5th Jan, 2017
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  2. Connor

    Connor Well-Known Member

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    The recent growth by these has been driven by affordability. For years areas like Cranbourne, Carrum Downs, Skye etc had lagged behind in terms of growth. Yield was always ok but growth was very slow.
    The recent growth spurt had to happen. As buyers/investors got priced out of other areas of Melb, these areas offered affordability, better yields and plenty of potential upside... Which we have now seen...
    I think these markets do have abit more steam left in them, but personally I wouldn't by in now unless i found a cracker of a deal..
     
    Connor, 5th Jan, 2017
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  3. sash

    sash Well-Known Member

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    It is unlikely to slow whilst prices are under 500k...or interest rates escalate to over 6%...

    I bought in Officer demand is outstripping demand...
     
    sash, 5th Jan, 2017
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  4. WattleIdo

    WattleIdo midas touch

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    Took the words outta my mouth. And I wouldn't buy anywhere unless it was a cracker deal.
     
    WattleIdo, 5th Jan, 2017
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  5. Otie

    Otie Well-Known Member

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    There's two markets in Pakenham- the older 35-50yo owner occ market in the "nicer" estates, then there's the investors- all the sub 400k deals are mostly tiny rentals on tiny blocks.
    The stuff 500-700k is the nicer OO/second home buyer 30sq +houses on 600-800m blocks. The good estates are Heritage Springs,Lakeside (some pockets) Grandvue Officer
    Then there's the older parts which are pretty feral, but still cheap and probably decent block sizes. I wouldn't buy here only as there is a heap of tiny IP looking little houses being built everywhere you look. I'd be worried about Oversupply and tenants having too much choice.
     
    Otie, 5th Jan, 2017
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  6. Otie

    Otie Well-Known Member

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    Having said that if your holding long term 10+, you still won't go wrong, but I think after you get a bit of quick equity within first year or so it may be slow after that- depending what and where you buy
     
    Otie, 5th Jan, 2017
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  7. rtaapr

    rtaapr Member

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    how is the market in areas like Pakenham now? looks bit too far from city
    and many new H&L in neighboring officer
     
    rtaapr, 9th Jun, 2017
    #7