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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 Development

The Secret Agent Report – Co-Living

We have just released our latest Secret Agent report!

This month, Secret Agent takes a closer look at the co-living spaces that are emerging across the world. While this trend is something we have seen before, it has re-emerged in a modern form and is changing the way people think about living – and working.

Access the Co-Living report now!


Price Per Square Metre of Melbourne Penthouse Apartments

Open plan living room of Melbourne penthouse apartment

Melbourne penthouse apartment, realestate.com.au

This week, Secret Agent takes a closer look at the price per square metre of Melbourne penthouse apartments.

Besides occupying the top floor of a medium to high rise building, for an apartment to be considered a penthouse, it also had to have a distinguished floor plan.

Out of 1,908 apartments sold around inner Melbourne since January 2016 to May 2017, there were only 21 penthouse apartments. All of these were new, post-90s builds except for 2 warehouse conversions. These penthouses were concentrated around the CBD, inner East and inner South suburbs.

Note that our results were skewed towards the sub-$3 million penthouse market, as information on apartments sold above this value is generally less accessible. Most of the apartments in our study are not whole-level penthouses.

Suburb Penthouses Non-Penthouses
Average sale price $1,739,048 $590,655
Average overall PPSM** $11,076 $8,724
Average PPSM for 2 bed $11,544* $8,669
Average PPSM for 3 bed $11,132 $8,877
Average PPSM for 4 bed $10,187* $10,138
     
Median internal area for 2 bedrooms 139sqm* 69sqm
Median internal area for 3 bedrooms 157sqm 118sqm
Median internal area for 4 bedrooms 192sqm* 198sqm
Median outdoor area 47sqm 7.5sqm

* Based on less than 5 sales,  ** PPSM refers to price per internal square metre

Table 1   Average prices per square metre and median sizes in penthouses versus non-penthouses around inner Melbourne

Read the full post


DIY Period Home: What Does It Cost?

Illustration of two identical Victorian terraces built in 1880 versus 2016

Last spring, Secret Agent investigated the cost of rebuilding two period homes in inner Melbourne using current technology and materials. Our results below demonstrate that the prices paid for period property fairly represent the quality, history and scarcity of these types of homes in today’s market.

Using real examples of a Victorian terrace and an Edwardian house, we found that recreating these homes from scratch would cost at least $740,000 more than what you would pay for a genuine period home.

While it is possible to build a new home that imitates the defining features of Victorian and Edwardian houses, replacing period character to its full extent is almost impossible to get right. Note that the figures in the analysis of replacement values are conservative estimates only. Read the full post


Budget 2017 – Winners and Losers in Property

WINNERS

First Home Buyers
First home buyers will be able to use voluntary contributions to their superannuation to save for a house deposit. Withdrawals will be taxed at a lower rate, but the amount you can contribute is capped at $15,000 a year and $30,000 all up. Both members of a couple can take advantage of the scheme.

In Victoria, the state government will abolish stamp duty for first time buyers of homes valued up to $600,000, make cuts to stamp duty on homes valued up to $750,000, and also double the First Home Owner Grant to $20,000 in regional Victoria.

With the first home super saver scheme, we may see increased demand for property below $600,000. This will push up the prices of houses and townhouses in outer suburbs such as Cranbourne. Inner city suburbs will be less affected, as average prices are typically above $600,000. Developers will also have to compete more agressively for development sites that allow sub-$600,000 townhouses to be built and sold in these outer suburbs.

Downsizers
A person aged 65 or over will be permitted to make a non-concessional contribution to superannuation of up to $300,000 from the proceeds of selling a principal residence owned for the past ten or more years from 1 July 2018.

This is good news for real estate agencies operating in areas popular among downsizers, such as the inner city, as there is more incentive for elderly property owners to sell their home. Developers can also benefit from creating stock in these areas. Read the full post


Price Per Internal Square Metre of Terraces and Townhouses

In February, we released Melbourne’s first price per square metre index for houses and townhouses based on internal floor area. We’ve summarised our key findings in an infographic for you to share and download easily.

Here’s what we found:

Terraces: $13,155/sqm of internal space

Most affordable suburb: Flemington $10,262/sqm
Most expensive suburb: Middle Park $17,357/sqm

Most affordable room: Living room $6,869/sqm
Most expensive room: Bedroom $14,717/sqm

Townhouses: $8,387/sqm of internal space

Most affordable suburb: West Melbourne $7,128/sqm
Most expensive suburb: South Yarra $12,008/sqm

Most affordable room: Kitchen $4,692/sqm
Most expensive room: Bathroom $19,424/sqm

Click here to download the PDF version of this infographic.


Apartments Price Per Square Metre Update Q1 2017

Inner Melbourne average Q1 2017: $8,882/m2
Inner Melbourne average Q1 2016: $8,622/m2
Percent annual growth: 3.02%

On average, apartments increased in price by $260 per square metre, or 3% over the past year.

One bedroom apartments have remained about the same in nominal terms (which means they have fallen in value in real terms) and are now the cheapest apartments at $8,650 per square metre. All other apartments increased in price, with 4 bedroom apartments now averaging $11,450 per square metre. Not many of these properties get sold each quarter, so prices tend to fluctuate a bit. Similarly, three bedroom apartments increased in average price by about $1,000 to $9,400 per square metre in the first three months of 2017. Two bedroom apartments are also up slightly ($8,900/m2), while studios were more expensive than 1 and 2 bedroom apartments over the past three months ($9,200/m2). Read the full post


Better Apartments: Room Depth

This week, we continue to explore the results of our Better Apartments Design Standards study.

One of the factors that had a very high pass rate was maximum room depth. However, given that this standard simply measured whether the depth of habitable space was less than a fixed value (1.5 times the ceiling height, or 9.7m if there is a rear kitchen, see Figure 1), this may not necessarily be a good thing. Smaller apartments are more likely to pass simply because if room dimensions are smaller, apartment depth will naturally be smaller too.

Read the full post


Better Apartments: Room Dimensions

As part of the Victorian Government’s Better Apartments Design Standards, three new rules were introduced for minimum room dimensions. These determine the minimum width and depth of main bedrooms, additional bedrooms as well as minimum size and dimension of living areas. For more detail, refer to our latest report. We sampled 3000 apartments built over the past 6 years in inner Melbourne.

Our research finds that if the new standards were already in place when the apartments were developed, only 7.7% (231 apartments) would have passed the minimum requirements for all three room dimension standards. Read the full post


The Secret Agent Report – Better Apartments: Before There Were Standards

We have just released our latest Secret Agent report!

This month, Secret Agent reviews the quality of apartments built in the last 6 years and compares them with Victoria’s new Better Apartments Design StandardsIf constructed today, how many of these apartments are actually compliant? In which criteria do we observe the highest fail rates?

Access the Better Apartments: Before There Were Standards report now!