Melbourne prices grow in leaps and bounds
Just like us here at Nelson Alexander, a lot of the people we know in Melbourne have been here a long time. Much has changed in recent years, and the city has become increasingly congested. We recently saw that the City of Melbourne is taking steps to change this, with the council spending $1.7 million to buy a West Melbourne property so it can “create and expand open space across the city”.
That’s no small sum, and it got us thinking. If that’s how much is being paid for one property there, what are the properties that people have held for years going to be worth? It turns out many people might just be sitting on a golden ticket.
Million dollar homes, then and now
Research company CoreLogic RP Data always provide incredibly detailed information on our markets, and an August 31 piece from researcher Cameron Kusher looked at the historic proportion of million dollar properties found in our capital cities.
For example, back in 1995 only 0.3 per cent of houses cost a seven figure sum – the same percentage of units as well. However, in 2015 this figure has grown to a whopping 17.7 per cent for houses, and a more modest but still thriving 5.4 per cent for units.
That’s right – nearly a fifth of houses in our city cost more than a million dollars. But what are the best suburbs in Melbourne in terms of this growth?
Hot spots in our area
It doesn’t take much research to work out that a lot of these million dollar properties are going to be found within our network – perhaps right around the corner from you. Residex profiles show that the median price of Carlton real estate, for example, is $1.23 million. Meanwhile, February data from CoreLogic found that Kew real estate actually saw the third highest number of million dollar homes sold over a 12 month period.
Clearly, a lot of us are in areas primed for big sales! On the other end of the scale, however, people are still going to be able to buy homes in these suburbs without breaking the bank if that’s what they need. The Residex report, for example, showed that in Carlton you can secure an apartment for as little as $250,000.
There is value and profit to be found all over the place – the key is working with people that understand where to find it.