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


Happy Holidays!

Illustration of Donald Trump wearing the uniform of the Ballarat footy team, holding a torn British flag, sitting on a disgruntled black swan, while doing a thumbs up.

Secret Agent would like to wish you a Merry Christmas and Happy Holidays!

Thanks for your support this year and we look forward to catching up in the new year.

Our office will be closed from the 24th December 2016 to 8th January 2017.


The Secret Agent Report – End of Year Review

We have just released our latest Secret Agent report!

In this issue, we provide a deep overview of the year in terms of the yield curve, apartment price per square metre rates and capital growth, concluding with a wrap up of each area’s performance in 2016.

From all of us at Secret Agent, we wish you a very happy holiday season!

Access the 2016 End of Year Review report now!

secret agent report end of year review 2016


Investment Tips: Time Value of Money

Icon of a clock multiplied by an icon of a dollar note equals a question mark, to illustrate the concept of time value of money.

This week, Secret Agent illustrates the importance of time value of money when investing in property.

There is a saying that money earned today is worth more than money earned tomorrow. The main reasons this is true are:

  1. Inflation (rising price levels deteriorate the spending power of cash)
  2. Interest rates (money that can be invested today earns interest, which compounds over time
  3. Opportunity cost (the ability to use money now rather than having to wait for it)

Read the full post


Trump Makes Bond Yields Great Again

A look at the bond market reveals a very large jump in bond yields the day after Trump was elected.

What a year it has turned out to be. From the mild (Western Bulldogs Premiership) to the momentous (Brexit and Trump presidency), 2016 has seen it all. Before discussing more recent events, let’s take a look at how bond yields have been performing since our last update in September. Read the full post


Warehouse Apartments in Melbourne: What They Cost

Infographic showing the average price per square metre of 2 bedroom warehouse apartments

Who knew that the walls of former breweries, factories and mills would become one of the most irresistible apartment styles to own and occupy in inner Melbourne.

Warehouse apartments are unique in that they successfully and seamlessly merge historic and trendy. Characterised by their exposed brick walls, steel trusses, sleek interiors and impossibly high ceilings, warehouse style apartments are limited in supply, further adding to their appeal.

In this bulletin, Secret Agent examines inner Melbourne’s warehouse apartment market. Read the full post


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.

price-per-square-metre-melbourne-apartments-q3

Click to view table in fullscreen mode.


Melbourne, Docklands and Southbank: Capital Growth of Apartments

Secret Agent’s apartment capital growth index tracks price changes of the same apartments over time. Rather than simply using average price changes, basing the index on resales gives a better measure of true capital growth. The index tracks how apartment prices change when buying off the plan, as well as all subsequent sales of the property. This bulletin takes a closer look at apartments in Melbourne CBD, Docklands and Southbank. Note that when talking about annualised growth rate, we are referring to converting the growth rate over one quarter to an annual figure.

Since 2009, CBD and Southbank apartments have been growing in value at about the same rate, with the CBD slightly ahead for all but the first quarter of 2016 (Figure 1). Since the end of 2011, CBD apartments have grown in value by an annual average of 2.83%. while Southbank apartments by 2.60%. Over the whole time period, Docklands growth was well below the other two suburbs, averaging 1.40% over the past five years.

blog-1 

Read the full post