What Markets/suburbs are Softening in Melbourne

Anyone like to comment on this.

My understanding is that some markets have softened. I believe auction clearances are all over the place, up.. down .....

Windsor houses seems to have softened from what I can see?? But I could be wrong, just a quick observation.

not interested in what is still strong or still rising

MTR

 

Even the cheap and hot suburbs in Western Melbourne are softening now @MTR . I am talking about Werribee, Hoppers, Tarneit, Wyndham Vale, etc. A lot of passed in at auction. Or auction sale price is less than the quoted range (last year it is always at least 10% higher). Houses in not very good location or bad condition were sold for less than what they could be sold just 3-6 months ago.

 

Thax dont

Thanks for the heads up

Sign of the times, land and house builds vulnerable, mentioned this some time ago

 

I have just done a CBA desktop valuation of my small Preston house, bought at August 2016 and now got 150K equity on it. So I am happy at least I have some buffer, even if the market is softening.

 

Yes, if you bought well before July 2017, you will be fine since you should have a decent buffer imo.

 

I can only speak for areas i follow, Essendon has softened by roughly 100k, now I believe this might be because the new rules regarding garden space came into play and but I also think we are over the peak of craziness when buyers would pay anything to get into the market.
@hieund85 from following werribee and going to auctions regularly I will say quality stock is definitely selling well above sticker price and lots of bidders. The price is also way more than it was last year, just saw a 3/2/2 on a 387sq block sell for 500k, that's a record price and only moving up and still seriously hot. I have noticed some agents are now selling crapy places privately as the market might have changed, not as many bidders but the sales are still there.

 

Agree @Barny . As I said the market is softening but it does not mean that all is coming down. Quality stock still can get good sale price but crappy ones do not. It is different to last year when everything could be sold easily for above quoted price range regardless of the stock quality.

 

More passed in at auction, less bidders, bidding war is hard to see. Agents calling almost everyday to check interest, vendor agree to discount. Those were not seen in 2016-2017.

 

One more area I can comment although I do not know it as much as Werribee/Hoppers. It is Reservoir. It is definately cooling down. There few exceptional stock getting premium price but the normal, average ones are flattening. Units even need discount to sell.

 

What are the southern suburbs like Cranbourne doing?

 

i went to one reservoir and preston auction with both diff results

Reservoir in the coveted growth zone - sort of passed asking 1.2 mil to be honest (a kind of half here half there approach by the vendor) advertised with 3D for 6 townhouses but then everyone rocked up to just find out the permits were not lodged but the drawings can be used by the potential buyer. but in reservoir 4-5 passed in out of 26. Though this 162 Broadway was flat. no doubt. u either have a permit or you don't

You go to 48 Malpas St Preston - bang - auction was over in less than 10 minutes 3 buyers fiercely fighting for 533sqm and wasn't even a growth zone property closing at 1.085 mil (closed to the housing comm estate.

 

This is interesting.
I am also noticing not so many posts on land and house packages, an indication perhaps things are changing rather quickly??

 

@hieund85 which suburbs are there.

For sure it is not pt cook h&L - I sold last year and it is up 15-20% from my sold prices. townhouses are now selling at my price I sold out.

 

That's great, but you definitely don't want to be holding the baby if market starts softening. Its only a matter of time once it starts.

Not trying to be negative, I have been down this road, when markets turn they can happen rather quickly

 

I think i did say i sold right? similar to your Thomastown dev.

Perth and Melbourne are 2 different beast - besides i owned the Pt cook places outright without any loans

 

that's great.

I am talking about Perth market when it was booming, the only time to build IMO like Melb.

 

a lot more sold before and after auctions the last few weeks thenusual and not much under hammer over here in Canterbury, Balwyn, Surrey Hills. Also many Monday inspections came up today on my app so not a good sign for vendors. Still a good owner occupier market (Turn key houses seem to be doing best) with finance being easier for PPOR.

 

I am not following Pt Cook as close as Hoppers/Werribee so I may be wrong about it.

 

When did you sell your Point Cook land/property? 2017 is a very good year for the area with close to 20% increase. But 2018 is cooling down I think. I got a few calls from REA for lands in Upper Point Cook since the beginning of 2017