oc | Monday 30th March

Inner and Northern

Adam Gardner

Inner City and Northern Weekly

Inner City

People love these Inner City areas for their condensed urban profile, which is great for convenience and proximity to the city, but brings with it a different type of living. For example, buyers here are prepared to trade off the possibility of noise for the reward of being in the action. Car parking is also not as high on the priority list when people can walk or hop on a tram to get to work in the city.
People here more often buy a location rather than waiting for their dream home. The transaction opportunities at certain price points (such as lower $1ms) here are generally high. The “miss at auction” rates for buyers are also generally high because they face competition in terms of numbers of bidders. Understanding longer term values here is important, as is getting the edge in . We have bought pre-auction as well as under strong competition at auction. Knowing how and when to move is imperative. So is knowledge of how to deal with Off-markets. Despite the high volume of public listings in these areas, there is a growing volume of Off-market properties such as new builds. We deal with agents experienced in both these facets.
During the week we chatted about the upcoming market over a coffee with long-time agents Luke Schickerling and Craig Hillis of Jellis Craig (Richmond), and our conversation got onto the finer points of what gets buyers’ attention in those areas. Richmond and its rows of classic single fronters, townhouses and terrace homes often do not have room for onsite parking, which leaves the street as the only option. But they still see strong competition unlike in the more family living . Understanding the various pockets within precincts is also important for gauging potential for longer term growth.
Many younger buyers, particularly in Richmond and Carlton, traditionally used inner city buying as a “stepping stone buy” before moving further out to the inner suburbs to start families and secure a bit more dirt, often in suburbs such as or . This seems to be changing, as many more buyers are seeking to upgrade from an apartment into a smaller home or townhouse within the area. The growth rates of single fronters and new townhouses has been strong but Luke advised that price growth for Richmond recently has generally stayed flat.
We also buy for an increasing number of downsizers wanting to leave their bigger in the burbs and get back to a place where they can more easily enjoy the inner city living, such as restaurants and theatre and of course, the footy. Do they have more money than the younger generation to buy, and are professional couples such as doctors and lawyers their competition?
Understanding property in these areas may not be as straightforward as in the more uniform family living suburbs.
For example, buying an inner city property with parking has traditionally been a way of securing better long term growth over one without this access. But the peculiarity of precincts are an important consideration when assessing this potential. For example, residential properties in Yarra Council generally get permits or car parking, but it depends on the age of the dwelling rather than its capacity. This policy is being reviewed by the Yarra Council, and many issues are being looked at including the number of permits that residents may be issued, and also the way the December 2013 ruling affects owners who pay rates but don’t get access to parking. When or if this scenario will be changed it is unclear, so due diligence is needed as to what entitlements you are buying and at what price you are paying now against expected future .

$1M+ inner and northern Featured Auctions
No report
Stonnington Weekly
darebin Scheduled Auctions
333 Raleigh Street, THORNBURY
Bought $739,000
banyule Scheduled Auctions
45 Waterdale Road, IVANHOE
Bought $2,380,000
yarra Scheduled Auctions
47 Buckingham Street, RICHMOND
Bought $1,610,000
10 Dudley Street, FITZROY NORTH
Bought $1,500,000
25 Corsair Street, RICHMOND
Bought $1,200,000
45 Waterdale RoadBought$2,380,000$3,1732014-08-09
333 Raleigh StreetBought$739,000$1,5112014-08-09
10 Dudley StreetBought$1,500,000$4,1902014-08-09
47 Buckingham StreetBought$1,610,000$4,4352014-08-09
25 Corsair StreetBought$1,200,000$10,7142014-08-09
23 Griffiths StreetPassed InPI: $1,250,000
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: Bought range: $0 - $0 - Bidders (Photo: )

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