What will stop the BOOM in Sydney and Melbourne

lol that's why the stats posted a few posts up shows melbourne prices down for November?

It's all the Chinese speculating with "cash of dubious origins" Have a look at the London boom, over there they have Chinese, Russians, Middle east, if not for brexit things would still be going bonkers over there. Canada is also experiencing some significant declines in prices from their 15% tax on foreign(but really mainly chinese) buyers.

 

Exactly this, even the ugly duckling areas have jumped up. Some of the recent sold prices in those areas and my conversations with RE agents reflect this.
I purchased a dev site there just over 12 months ago.. Looking at comparables its easily seen a 25% increase since then.. Now I need to decide whether to push ahead with the development or just sell it and take the profit. These markets don't last forever..

 

I have purchased ugly duckings many times and its very simple if they have good infrastructure and even better if you can develop the land you will make money. Did this with Broadmeadows, Girrwheen (State housing in Perth), both development sites and made significant profits within 12 month period. Have to look outside the square.

MTR

 

7 cranes a construction boom ? there is more than that as i drive past one side of Bankstown, which is one of many Syd suburbs.

Yeah, I do actually, I am very familiar with with most of Sydney, I have also driven around Werribee.

So if you Drive Sydneys South West, and out to Oran Park and North & North West from there, you have piles of land.

And do not mind me, and I will ignore your comment, as I am familiar with how much Werribee has moved too.

 

great stuff @Connor - after last week and this week auction, i am in a similar position, with a jump of 60% in less than 3 months based on sales over the last 2 weeks.i probably won't even get a permit and wait out 1 year.

 

Wow!! 60% in 3 months is brilliant!!
I'm noticing there's a real frenzy in some of Melb's western and northern areas for dev sites.. Many reaching prices where even the most optimistic fesos don't make sense!! Well done.

 

Yes, that's correct, I have sold my Croydon project/DA, got too tempting to take the money and run, gains were already realised on the land... not sure what 2017 will bring?? I am chicken

 

it not only happen once but a few times - feels like the median moved a 100K
mine was a combo of movements and studying rezoning news and infrastructure

an example was maidstone - what was 600kish when i was looking and now looking at 800-900Kish for the similar property.

 

not sure - but i am on the ground in the suburbs i target every week. If i am not there, i ask my friend to go there for me - there are bidders no doubt abt that.

 

They have accepted an offer. Good conditions, quick settlement, good price. Gotta love the Melbourne market!

 

Done and dusted, gone unconditional settles end of January 2017.

 

Interesting times for Melb at the moment... lets see what 2017 brings

 

For those here who don't follow Sydney very closely.....

Just a mere $4.8Mil + being asked for this... 12 Castlereagh Cres, Sylvania Waters, NSW 2224 - View Sold History & Research Property Values - realestate.com.au

A lazy $5.2 + being asked for this 17C Tara Street Sylvania NSW 2224 - House for Sale #121571086 - realestate.com.au

$7 Million + for this -- Fernleigh Road Burraneer NSW 2230 - House for Sale #119449639 - realestate.com.au

Nice houses, or at least nice water access , but seriously.....

This went for @ 3.6 Million... 9 Corella Court, West Pennant Hills, NSW 2125 - Property Details

Previously purchased for $1.535 in 2012. 9 Corella, West Pennant Hills, NSW 2125 - Property Details



This was passed in at auction @ $2.6 Million last weekend... they want $3Million + 23 Chiltern Crescent Castle Hill NSW 2154 - House for Sale #124185574 - realestate.com.au.

$2.9 Million + being asked for this 3 Crompton Place, West Pennant Hills, NSW 2125 - View Sold History & Research Property Values - realestate.com.au. I offered them $2.5 Mil and they scoffed

This was sold for $1.64 in September 2016 7 Kingussie Avenue, Castle Hill, NSW 2154 - Property Details
Quick reno/flip, and resold last week for $2.18 Mil 7 Kingussie Avenue, Castle Hill, NSW 2154 - View Sold History & Research Property Values - realestate.com.au . Compare the pics - this is not a 540K reno.

anyway...might help some readers better understand just whats been happening in Sydney... I believe there has to be a modest correction.

 

I don't know but I keep on thinking the boom is about to finish.... Cycle wise it should very soon

I wouldn't be doing developments right now

 

Funny how agents misrepresent properties.
This house is clearly Caringbah South, but listed as the more expensive suburb of Burraneer...
You'd have to drive a few km's around to the other side of the bay to get to Burraneer, but the agent would know that.

 

Those places were never cheap anyways, I looked at a place we had not far from Sylvania waters, but on a busy road, really a nightmare of a place, cant remember how many decades ago it was but was 200k ish, it just sold for not that much under 2 mil....geez

It has gone bananas though.

I got an ad for a place in Penrith with a price of 675k , so I though ok, must be a dev block or granny flat potential, old seedy 2 bed place, then you look closer it is only a 550ish sq standard block ! and less than ten years ago sold for 147k !

So something must happen, it is all out of whack & I reckon a bit sensitive to rate rises, let's see what happens when the banks start sharing the rises with OOs too. I got home from work yesterday with nice letters about rate rises

 

I do not follow the area, but that price seems a bit much, but it is near an acre, and if it is truly deep water, then.....

 

Definitely not, unless you purchased your land at the beginning of the boom.

 

Unit approval update (M Yardney Blog)
calling it likely peak?

Sharp fall in unit approvals in October likely marks the peak of the residential construction cycle - Property Update

 

what do you guys reckon about brisbane for developments?
still a good time? or getting a bit risky?