REA: Sydney, Melbourne property prices still falling

Price indexes distorted by low volumes and premium market gains, an excellent interview with Nerida Conisbee of REA, via Martin North:

Comments

  1. “Premium suburbs are doing well”

    From my observations the hot booming suburbs in Melbourne right now include Glen Waverley, Bulleen, Box Hill and Doncaster.
    Premium bids with dirty, probably drug washed, imported money.

  2. There’s certainly been premium market gains. MIddle part of the market (which includes the Doncasters and Box Hills mentioned above, but also other non-less Asian suburbs like Benteigh) also have gone up. Conclusion — market is rising. Those that think otherwise are delusional. That’s for Melbourne.

      • It’s 27 minutes too long, is there a CliffsNotes version? Seriously, there’s no way prices are anything but rising in Mellbourne. I’ve even seen (established, older) apartments jump up, which surprised me.

        • It depends on the segment. You’re looking at the stuff that’s doing well. Big houses big blocks in good suburbs or older well built larger apartments. I look at the same. Seen prices going up. Outer blocks, new developments and apartments / townhouses of questionable quality are all still falling or failing to sell.

          • I’ve seen some smaller houses on small blocks do very well as well (admittedly in blue chips suburbs — semi-detached 2/3 bedders in Balaclava, Elsternwick, Prahran, Toorak etc). That outer suburbs aren’t rising by much (or at all) doesn’t surprise me — because they didn’t fall all that much ether.

          • What’s word I’m searching for? Sell!!!
            Remember how Freddy and Fannie got bailed out and we were “Saved!”; and Bear Sterns was taken over and we were “Saved!”?
            Someone told me years ago “There’s always a spike before the Big Chuck” and whilst I can’t remember the context it looks to me like what’s happening now, The Spike….

          • That’s because everyone thinks it’s a return to normal right before it all turns into custard. I do believe we’re in the bear trap phase right now. (hence the term crack up boom).

            Why else is Fraudenberg out there telling everyone inc. the banks to borrow borrow borrow?

            I’ve actually seen outer suburbs hold value or increase but they are semi-rural areas that appeal to the wealthy such as St Andrews, Panton Hill, Kangaroo Ground, Kinglake areas. Frustrating, as they never seem to have fallen at all through all this….

          • Elsternwick- 2 houses sold quickly recently.
            – lower than they had hoped.
            Noticed two development blocks up for sale- haven’t seen that for a while
            – corner of Glenhuntley road and Laura Street. Was two houses, now hole ground with cement walls.For sale as is.
            – Kooyong road,near Parnell street( eastern side). Lovely old house bulldozed, was going to be units, block of land up for sale as of a couple of days ago

          • @JS that all says panic signs to me… Low volumes and high credit availability has driven recent surge in “good dwellings” but junk has remained on market over winter and now I’m seeing a surge in listings in the last 2 days, as Spring season ramps up. I think it won’t bode well for prices myself. I don’t think there is enough punters out there to buy all these properties at these obscene prices.

          • St JacquesMEMBER

            To a degree it just shows how important the foreign bid was, not just directly but through that ripple effect.

            Falling household incomes, falling AUD, rising energy costs, etc….not supportive at all.

          • No, didn’t view that one . Nice street, nice community around that area, and decent depth of block. A friend lives just up the road. Close to a couple of very popular synagogues.
            Two up near Parnell street instead, one seriously over renovated and over capitalised.

          • Ladies and Gentlemen if this doesn’t bring a tear to your eye, then nothing will. Like I say, shyte suburbs are still suffering. Brunswick is an absolute hole. It may be Hipster haven, but they are broke as feck. So it don’t matter… Just listed.
            https://www.realestate.com.au/property-house-vic-brunswick-132108746

            14 Errol Avenue, Brunswick, Vic 3056
            $1,395,000 – $1,495,000
            Now here’s the good bit, ready?

            on August 3rd 2019.
            https://www.domain.com.au/news/brunswick-house-passes-in-at-auction-for-100000-less-than-two-months-ago-866106/

            Despite an extensive overhaul to the once-dilapidated property that restored its period charm while adding a contemporary finish, the home at 14 Errol Avenue, Brunswick, drew only one bid of $1.5 million from a small crowd.

            The Brunswick renovation project last sold in March 2018 to owners Tony and Marcelle, who wished to be known only by their first names, for $1.33 million. It was then a popular auction with six bidders, Tony said.

            “It was a super dump,” Tony told Domain. “When it is renovated, no-one wants it.”

            Its new owners spent more than $350,000 on its transformation, selling agent and auctioneer Robert Sordello told the crowd.

            It was last listed for auction on May 25. Despite passing in at $1.6 million, a sale was negotiated after at $1.62 million, subject to finance.

            When that buyer’s finance fell through, the home was relisted with a price guide of $1.5 million to $1.6 million.

            It was not enough to get a deal done, with the property passing in. An offer of $1,525,000 in post-auction negotiations also fell short of the reserve price of $1.55 million.

            Enjoy!

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