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


Category Archives For: Property Buying Tips

What Melbourne’s Apartments Will Cost You

In this update, we present a more thorough look into the price per square metre rates of apartments by suburb, further categorising sales according to the number of bedrooms. These results are shown in Table 1.

The overall average price per square metre rate for apartments in inner Melbourne is $8,687/sqm. 

Overall, the three most expensive suburbs to purchase an apartment  are Albert Park ($13,276/sqm), East Melbourne ($11,914/sqm) and Middle Park ($10,720/sqm). These areas have consistently topped our index.

The least expensive apartments per square metre can be found in Travancore ($6,563/sqm), Kensington ($6,869/sqm) and Flemington ($7,079/sqm).

A few things can be observed when considering apartments with a larger accommodation. In some suburbs, the increase in number of bedrooms also leads to an increase in price per square metre, as seen in the CBD region, Carlton, Collingwood, Clifton Hill and South Yarra.

We can see that most of the inner North and inner West suburbs tend to have decreasing price per square metre rates as apartments grow in accommodation size. However, note that some of the data may be inaccurate due to the small number of sales available for that particular apartment type.

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Click to view table in fullscreen mode.


The Secret Agent Report – Melbourne’s Supply of New Developments

We have just released our latest Secret Agent report!

Demand is a hot topic in the apartment market at the moment, and assumptions about what buyers want are being made by almost everyone with the right to an opinion. Predicting future demand for a property is one way for investors to estimate the future capital growth of an asset. However, too little attention is paid to the supply side of the equation.

In this report, Secret Agent will move the focus from demand to supply, and forecast Melbourne’s upcoming stock of new developments.

Access the Supply report now!

You can also explore our interactive map of Melbourne’s supply of new apartment and townhouse developments here:

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Inner Melbourne’s Smallest and Largest Apartments

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Inner Melbourne’s apartments are getting tinier with each new development. But, how small is small? Secret Agent’s updated apartment index reveals that the average size of a 1 bedroom apartment is only 47sqm, and for the more popular 2 bedroom apartment the average size is 73sqm.

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Inner Melbourne’s Most Affordable and Expensive Apartments

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Secret Agent has updated its price per square metre index for secondary apartments in inner Melbourne. An additional 478 apartments have been added to the index so that it now consists of a total of 870 apartments which have sold between 1st January 2016 to 30th June 2016. The new average square metre rate for apartments in inner Melbourne is $8,679/sqm.

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The Secret Agent Report – Recreating Period Homes

We have just released our latest Secret Agent report!

The original period homes that remain in Melbourne are frequently purchased for record-setting prices. It is difficult to quantify the value of character, however it is possible to estimate how much these houses are truly worth if we were to build them from scratch today.

This month, Secret Agent investigates the cost of rebuilding two period homes in inner Melbourne. We demonstrate that the prices paid for period property fairly represent the quality, history and scarcity of these types of homes in today’s market

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Recreating Period Homes report now!


Bride and Bridesmaid Suburbs

Suburbs such as Fitzroy and East Melbourne have historically strong capital gains. Conventional wisdom is that by investing in neighbouring suburbs that have lower median prices, an investor would achieve stronger growth than in the blue chip suburb. This is because they would benefit from the spillover effect of buyers being unable to afford the blue chip locations and the subsequent gentrification of the suburb. This bulletin aimed to test if this is the case by analysing the growth of 5 bride and bridesmaid suburb pairs in inner Melbourne.

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A bride suburb is a relatively expensive suburb with good capital gains. It may be out of reach for a large proportion of property investors due to the high entry point.

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A bridesmaid suburb is a neighbouring suburb that boasts a lot of the qualities that make the bride such a good investment, yet with properties selling for much lower prices.

To compare, the median sale prices and annual growth rates since 2011 for all suburbs shown in Figure 1 were gathered. These suburbs were divided into suitable pairs, based on locality and differences in median prices. The results are shown in Table 1.

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7 Tips for Downsizers

Downsizing has been a major trend in the global property market over the past few years, one which continues to this day. Secret Agent has covered the topic extensively in the past. We have helped numerous people not only find their perfect home to downsize to, but also with the overall process of downsizing from a large property into a significantly smaller one.

Here are our top tips for people thinking about downsizing in the near future:

1. Consider location.

Downsizers will often be moving from a large block in a quiet street to a smaller block or even an apartment which is a lot closer to a neighbouring property, busy roads and transport. If you are not used to noise, then you might want to pay close attention to your surroundings and consider the potential noises that could disturb you at various times of the day.

This is the same for privacy. Take a walk around the perimeter of the property and consider what you can see inside. This is what other people will be able to see when you are living in there.

2. Choose a suburb that suits you.

Each inner city suburb of Melbourne has a culture of its own. Whilst most offer good lifestyle amenity in terms of access to public transport, cafes and restaurants, you should spend some time in the suburb of interest to ensure that the feel is right for you. For example, if you are used to living in an established, upmarket suburb, then an area that is still gentrifying may not be right for you. If you want to be near the beach and CBD, then you should consider suburbs such as Port Melbourne or Albert Park.

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The Secret Agent Report – Apartments Price Per Square Metre

We have just released our latest Secret Agent report!

Comparing square metre rates for houses is common and quite simple as land measurement data is readily available. Apartments are slightly different since it isn’t possible to make comparisons based on the land area they are built on. Floor plans are necessary to do this and the plans provided are often lacking full dimensions. Advertised floor sizes are often rounded-up figures that include external walls and non-habitable areas in the total, making them appear bigger than what they really are.

To overcome this, Secret Agent has manually measured the floor plans of apartments sold from January to March 2016 to create a square metre index for apartments in inner Melbourne. This report will showcase our results with an in-depth look at square metre rates for regions, suburbs and particular apartment types.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the Apartments Price Per Square Metre report now!

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Orientation and Your Home

Click here to download Secret Agent’s orientation guide

This week, we’ve put together a short guide to help you maximise the benefits of passive design solutions by understanding orientation in your home. With a particular focus on light and wind, we break down each aspect and offer suggestions for a more environmentally friendly and comfortable home.

North

  • Mornings generally receive Northerly winds from the inland due to land breeze. During winter this is the dominant source of wind. In summer, Northerly winds can be quite hot.
  • Direct sunlight and an excellent source of passive heating.
  • Necessary to use shading methods, such as planting deciduous trees (which permit low-angle Winter sun through) or installing eaves and blinds.
  • Suitable for daytime, living and dining rooms or courtyards.
  • Ideal orientation of the home with the long side facing North, or 20-30° off from the center.

West

  • Be wary of hot Northwesterly winds in summer and cold Southwesterly winds in the cooler months.
  • Evening sun can be quite harsh and hot in summer.
  • Option to strategically plant trees and shrub to divert undesirable winds and provide shading in the evening.
  • Alternative is to place utility areas facing West (e.g. laundry, bathrooms, storage) which insulate and shade living areas.

East

  • Little to no Easterly wind all year round. Design should promote cross-ventilation from other rooms.
  • Direction of sunrise and cool morning light.
  • Suitable for kitchens, breakfast rooms or bedrooms, as morning light is beneficial to regulate our circadian rhythm (natural body clock).

South

  • Evenings generally receive Southerly winds from the ocean due to the sea breeze effect. Southwesterly winds in the cooler months can be quite harsh.
  • Indirect light, therefore requires little to no shading. Borrowed light methods include use of skylights or reflections off neighbouring buildings.
  • Should be properly insulated as there are minimal passive heating options. Active heating may also be necessary.
  • Suitable for bedrooms or artist studios, as South light produces cool and controlled colour values.

The Secret Agent Report – True Capital Growth

We have just released our latest Secret Agent report!

Averages are frequently relied upon to determine key indicators such as capital growth. While an average may be a quick and easy metric to measure a data set, it can also produce very misleading results. This is especially true when looking at the capital growth of a suburb. Changes in average property prices and actual capital growth are not the same thing. There are many factors that determine the price of a house and the average growth in property values. Using more reliable methods, Secret Agent uncovers the true capital growth of suburbs across inner Melbourne.

Start reading this report by clicking on the link below:

Register to receive our report monthly and access the True Capital Growth report now!

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