News

The latest happenings in the Melbourne property market. For our Essays and The Secret Agent Report, see our Research page.


Category Archives For: Melbourne Real Estate News

Incomes and Property Prices

theage.com.au today has an article, which discusses the income required by a couple , with two children – to service a property purchase within Melbourne.

The dark blue areas show were the largest income is required to purchase a property.  What surprised me is not so much the Eastern suburbs or inner city income requirements,  but the incomes required to purchase property in outer Melbourne areas.


Turnover Trends

At Secret Agent, we wanted to compare the turnover of this year (amount of sales + total volume in $ value) compared to the previous three years. The turnover figures are for each suburb located within 6km’s of the CBD. This is what we define as true inner city living. We’ve used the first nine months of data for the years 2009, 2010, 2011 and 2012 and have matched the days exactly to give the most accurate account of the situation. Inner city data relates to all house sales and has excluded apartments. Victorian data will refer to all types of property.

Inner City (within 6km of CBD):

  • Carlton has seen a 135% decrease in sales this year (first 9 months) when compared to the first 9 months of 2010.
  • Suburbs within 6km of the CBD have seen a 20% decrease in total sales. Down to 1273 sales at this point compared to 1524 in 2010.
  • East Melbourne for the first 9 months of 2009 & 2010 recorded 46 house sales. Transactions have almost halved for the same period 2011 & 2012 with 24 sales being reported.
  • Comparing the dollar value change of East Melbourne worsens the situation. From $60 Million is house sales (first 9 months of 2009) to $20 Million this year (first 9 months).
  • Some suburbs have defied the trend. North Fitzroy is having its strongest year ever with $72 Million changing hands which has eclipsed all previous years.
  • Other suburbs with higher turnover this year than in the previous 4 years include North Melbourne, Princes Hill and Parkville. The inner North seems to be the outlier with the data.
  • South Yarra has been hit like a bomb. $165 Million in 2010 down to $91 Million this year.
  • Suburbs within 6km of the CBD experienced a staggering difference in the turnover dollar amount. From $1.64 Billion in 2010 (first 9 months) down to $1.162 Billion this year (first 9 months). 2010 has approx 40% more volume (in $ amount) than at the same point this year (2012).

Victoria:

  •  Victoria last year had 96,000 sales (Apartments, Land and Houses combines) compared to 144,000 in 2010, 165,000 in 2009.
  • However it compares badly with 2007 the granddaddy of them all at 173,500 total sales. Almost half the amount of sales!
  • 45,000 apartment sales in Victoria in 2009. In 2011 only 26,000 sold for the year.
  • 2011 the worst year for vacant blocks of land in over 20 years. As the outer fringes feel the pain. 2012 should prove to show a worse record once the year if complete.

Death in Brunswick: Affordability no more thanks to first million dollar apartment sale.

The end of affordability in Brunswick continues with the sale over the weekend of its first ever million dollar apartment sale. 309/1-3 Dods Street might have gained high attention from its prominent use as a set for the television show “Offspring”, but it also captured the imagination of the buying public thanks to its nice interiors, expansive Brunswick views and natural light.

In recent times Brunswick has been the prized suburb for artists, creative types, drug addicts and all round strugglers. The emergence of the suburb and trendiness has caused many to look further out to areas such as Coburg and westwards towards Footscray.

Up and coming suburbs tend to move through price gradients that determine the residents of tomorrow. Brunswick has moved past the easily affordable price points and is now capturing the yuppie demographic that are enjoying the labour of those who came before them. Brunswick has been living off a reputation as an affordable suburb; however, sales like the above demonstrate the death of affordability in Brunswick.

There is only one way around high prices in growth areas: get down in the mud and do some work…