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Heidelberg West and Melton South–Melbourne’s star performers

Top 3 melbourne $400ktop 5 melbourne $500k Top 5 Melbourne $700k

Melbourne’s property market showed mixed results in the June quarter where more affluent suburbs close to the city experiencing massive price drops whilst more affordable second-tier and city fringe suburbs recording strong growth.

The Valuer-General’s data is derived from compulsory sale notices and is therefore the most accurate available. It can differ significantly from other data sources provided by property analysts because it takes longer to compile and is released in a less timely fashion. The latest snapshot from the Valuer-General shows the following:

Price falls in inner city areas (June 2010 quarter):

  • Middle Park – median value fell 39% from $1,910,000 to $1,170,000
  • South Yarra – median value fell 32% from 1,920,000 to $1,300,000

Price rises in city fringe suburbs (June 2010 quarter):

  • Heidelberg West – median value increased 32% from $420,000 to $555,000
  • Melton South – median value increased 7% from $255,000 to $273,000

In this regime of upward pressure on interest rates, I believe affordability will be key and I foresee the rise of more affordable suburbs within Melbourne’s city fringe in 2011 as first home buyers and investors alike start to search for even better value. The reality is that most people aspire to live in inner city areas but can ill-afford these locations as prices have surged over the last 18 months. The higher end suburbs in cities like Sydney, Melbourne and Perth are experiencing decreases in value due to the lack of demand whilst second-tier suburbs with good transport links, public amenities such as schools, universities, hospitals, shopping malls and commercial centres are proving to be more popular to a wider range of buyers as these locations are a lot more affordable.

The three reports above identify locations which ticks all the boxes for  transport links, public amenities, strong capital growth history, gentrification and potential upward price pressures as well as strong investment yields.

The article above are excerpts from House prices slump near city, The Age, 2 December 2010

Related posts:

52 Grace street, Melton South, Melbourne

52 Grace street, Melton South, Melbourne 1

FOR SALE: 52 Grace street, Melton South, Melbourne

Asking price: $275,000

3 Bedroom, 1 bathroom, 1 car space

Located in the heart of Melton South, this property is within walking distance to  public transport and the local shopping precinct.

The property comprise of 3 bedrooms with built-in wardrobes, oversized single carport and a large backyard.

Agent: Kylie Doig, Cooper Real Estate. Phone 03 9747 9111 Mobile 0408 430 825

4 Austin Place, Melton South

4 Austin Place Melton South 1

Town house at 4 Austin Place, Melton South

Melton is located 42km northwest of Melbourne CBD via the M8 Western Freeway.

4 Austin Place is a development located located approximately 1.5 km from the Melton train station and 2 km to all the conveniences of the commercial and retail precinct along High street in Melton. It consists of 16 units of 3 bedroom, 2 bathroom and single car space town houses. The built-up and land area for each unit is approximately 165 sqm and 275 sqm respectively.

Most of the town houses at 4 Austin Place are now for sale at $289,000 per unit.

Melton was recently noted through research by Tim Lawless, Director of Property Research at RP Data as being one of the most affordable suburbs in Melbourne.

Most affordable suburbs to buy a house in Australia

15 Kurrajong Crescent Melton @ wealthruproperty.com

3-bedroom house on Kurrajong Crescent, Melton South, Melbourne

Based on research by Tim Lawless, Director of Property Research at RP Data an appropriate benchmark for affordable capital city houses in Australia is $350,000 whereby there are still many opportunities to buy a house below  this price in most cities. Hobart and Canberra are the most affordable and least affordable capital cities in Australia respectively based on the number of suburbs with a median house price of $350,000 or less.

Below is the list of most affordable capital cities in Australia:

Rank

Most affordable capital city

# suburbs < $350k

Total # of suburbs

%

1

Hobart

30

70

54.3

2

Adelaide

96

327

29.4

3

Melbourne

87

392

22.2

4

Brisbane

70

328

21.3

5

Sydney

130

625

20.8

6

Perth

25

259

9.7

7

Darwin

0

39

0

8

Canberra

0

84

0

* Note: All analysis is based on suburbs with at least 10 sales over the 12-month period to January 2010.

As at January 2010, Gagebrook in Hobart was the most affordable capital city suburb in Australia where median price was $153,000.

Hobart is the most affordable capital city with a median house price of $342,000. The median house price for capital cities over the three months to January 2010 are as follows:

Rank

Most affordable capital city

Median house price $

1

Hobart

342,000

2

Adelaide

395,000

3

Brisbane

460,000

4

Melbourne

489,000

5

Perth

490,000

6

Darwin

515,000

7

Canberra

545,000

8

Sydney

572,000

The 5 most affordable capital city suburbs for houses are as follows:

Suburb

LGA

City

# sold

Median price $

12-month change %

Avrge 10-year growth %

Dist CBD

Gagebrook Brighton Hobart 26 153,000 7.7 15.9 16
Clarendon Vale Clarence Hobart 27 155,500 -4.9 14.5 10
Primrose Sands Sorell Hobart 51 180,000 5.9 14.3 28
Bridgewater Brighton Hobart 50 180,500 6.2 14.6 19
Rokeby Clarence Hobart 58 190,250 0.9 13.3 9
Elizabeth South Playford Adelaide 39 200,000 4.2 13.6 21
Smithfield Plains Playford Adelaide 42 200,000 8.1 15.7 28
Elizabeth North Playford Adelaide 56 200,500 -1.2 13.8 26
Davoren Park Playford Adelaide 125 202,000 2.5 14.4 27
Elizabeth Playford Adelaide 13 210,000 -6.3 12.7 24
Lamb Island Redland Brisbane 15 205,000 -3.5 n.a 39
Russell Island Redland Brisbane 87 220,000 -6.8 14.9 42
Macleay Island Redland Brisbane 94 240,000 -7.0 13.2 37
One Mile Ipswich Brisbane 53 245,000 -3.9 13.3 34
Leichhardt Ipswich Brisbane 91 249,000 0.0 14.1 34
Millgrove Yarra Ranges Melbourne 48 218,500 1.2 11.9 61
Melton South Melton Melbourne 206 222,000 10.9 9.4 35
Melton Melton Melbourne 236 225,000 3.9 9.5 35
Frankston North Frankston Melbourne 123 237,500 4.3 12.1 39
Diggers Rest Melton Melbourne 29 240,000 6.0 8.8 32
Hillman Rockingham Perth 51 280,000 2.0 12.7 38
Armadale Armadale Perth 219 284,000 2.2 14.2 26
Parmelia Kwinana Perth 141 288,000 2.1 13.8 33
Camillo Armadale Perth 109 290,000 -1.7 13.5 23
Brookdale Armadale Perth 48 297,250 2.5 14.8 27
Moulden Palmerston Darwin 75 392,000 17.9 11.7 15
Gray Palmerston Darwin 53 409,000 14.2 11.9 15
Humpty Doo Litchfield Darwin 113 419,000 -1.9 11.2 33
Karama Darwin Darwin 72 420,500 8.7 9.8 11
Driver Palmerston Darwin 62 437,500 19.9 10.9 15
Chamwood ACT Canberra 44 351,000 3.2 13.4 13
Macgregor ACT Canberra 227 370,000 9.0 10.6 14
Ngunnawai ACT Canberra 98 380,750 5.8 10.1 12
Holt ACT Canberra 72 392,500 5.9 12.0 13
Casey ACT Canberra 47 395,000 n.a n.a 13
Wilmot Blacktown Sydney 34 219,500 9.8 9.2 41
Tregar Blacktown Sydney 63 220,000 8.9 9.6 40
Lethbridge Park Blacktown Sydney 68 225,750 9.6 9.6 40
Whalan Blacktown Sydney 72 229,975 6.7 9.0 39
Blackett Blacktown Sydney 51 230,000 9.5 10.6 38

Melton proceeding with $15 billion urban regeneration plan

Melton Community Hall @ wealthruproperty.com 2

Melton Community Hall, Melton South

The Melton Shire Council is in the midst of formalising a major planning initiative which involves 2,400 hectares of vacant land between Paynes road at Rockbank and Toolern Creek in Melton South, locations which are 30km and 40km from Melbourne CBD respectively.

This plan involves 2 community centres, retail and commercial precincts, a new railway station and low, medium and high-density housing which is expected to add 22,000 new dwellings and increase the current Melton population of 43,000 to 100,000 by 2026. In addition, the plan also caters for the expansion of land for Harness Racing Victoria which recently moved from Moonee Valley to a new $40 million facility in Melton.

Back in 1970, the population of Melton was 4,000. Today, the wider Melton Shire Council which includes suburbs to the east of Melton closer to the city, is one of the fastest-growing municipalities in Australia, with the current population of 103,000 forecast to reach 144,000 by 2016.

The Honourable Justin Madden, Minister for Planning is expected to approve the Toolern Precinct Structure Plan in June 2010, with a developer expected to be appointed by December 2010. Subdivision works will be carried out in the middle of next year, with construction set to start soon after. More than 35 developers, consultants and other interested stakeholders are expected to be involved in the proposal to develop the first 512 hectares of council-owned land out of which 381 hectares will be residential properties.

Among the property developers expected to be joint-venture partners include Delfin, Lend Lease, MAB Corporation, Mirvac Group and Stockland, which recently paid $57 million for a 124-hectare development site in nearby Leakes road capable of accommodating 1,300 residential dwellings.

On completion of the entire 2400-hectare redevelopment, just one Western Highway exit will divide the invisible line where Melton begins and metropolitan Melbourne ends, loosely considered the 1,996 housing estates of Caroline Springs and Burnside, which actually share the same postcode as Deer Park.

M8 Western Freeway @ wealthruproperty.com 1

Excellent drive on the M8 Western Freeway

Total development value is expected to be a massive $15 billion will be invested in Melton, spread as $9 billion and $6 billion for residential and commercial development, making this investment a larger urban regeneration than Docklands’ $12 billion to the west of Melbourne CBD.

Melton, being known as the former “thoroughbred country”, which is currently 40 minutes by car from Melbourne CBD is expected to become more accessible when the proposed outer ring road is completed, connecting the suburb to Melbourne’s Tullamarine airport and an interchange at Oakland Junction connecting outer-western suburbs to the Hume Freeway. This development is another step closer for Melton to become part of metropolitan Melbourne.

The above is an excerpt from an article written by Marc Pallisco for The Age newspaper.

Other related posts:

IMG_0069

Elm tree-lined Bacchus Marsh road

Toolern street, Melton South

Toolern street, Melton South @ wealthruproperty.com 1

A quiet cul-de-sac, Toolern street in Melton is only 600m from Melton train station on Brooklyn street, 300m to local shops and 500m to the local Station Square Shopping Centre which includes Coles, Liquorland, local butcher, newsagent, UFS pharmacy, fruit and vegetable grocer, post office and restaurants.

Toolern street is a 5-minute drive to the Woodgrove and Coburns Central Shopping Centre at the corner of High street and Coburns road, Hannah Watts Park and Melton Valley Golf Club.

Being on the southern end of Melton, this location surrounded by schools and learning institutions within a 1.5km radius which include Melton Christian College, St Anthony’s College, Victoria University’s Melton campus, Staughton College, Melton South primary school and Coburn and Brookfield primary schools.

Most importantly, located to the south east of Melton township, Toolern is a 2,500-hectare urban growth area within the current Urban Growth Boundary. The Melton Council has commenced a $15 billion initiative to establish the area as a major growth centre for Victoria which will be one of the biggest growth precincts across metropolitan Melbourne. The massive, long term urban investment strategy is a visionary program to create a major new investment location for Victoria.

Vital statistics

Suburb Median house price $ Weekly advertised median rent $ Gross yield $ 3-year growth % 5-year growth % Average annual growth %
Melton 220,000 230 5.4 22.2 29.0 9.5
Melton South 208,000 220 5.5 18.9 22.4 9.7
Melton West 245,000 240 5.1 11.4 16.7 8.0

Source: Your Investment Property, December 2009

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

How it’s calculated:

Median price: Median price for the 12 months to August 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

5-year growth: Median price percentage change over the past 5 years to August 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to August 2009

Gross yield: Estimated rental return, based on advertised rent to median price

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