A variety of dilapidated houses in Melbourne’s fringe suburbs are trading for more than $1 million as median house prices continue to rise.
A string of dilapidated houses in suburbs like Coburg and Preston are on the market for more than $1 million, the alarming new entry point to Melbourne’s inner northern fringe, as prices continue to soar.
Buyers from increasingly gentrifying areas like Brunswick, Thornbury and Northcote are now looking further inland to suburbs like Coburg, Preston and even Reservoir.
As demand in these areas continues to increase, buyers should now be prepared to pay at least
1 million dollars for a house.
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Advantage Property Consulting director Frank Valentic previously told the Herald Sun that more buyers were looking more towards the “middle suburbs” as Melbourne became too expensive and “you get more for your money”.
He added that suburbs such as Northcote and Thornbury would be next to demonstrate regular sales of over $1 million, which would then “spread out to Reservoir and Preston”.
This comes as the latest PropTrack data shows that Preston’s median home price has risen by a whopping $170,000 (16%) in the last year to hit $1.23 million and $373,000 (43.5%) in the last year. last five years.
Coburg produced similar numbers, rising $174,000 (15.9%) in 12 months and $400,000 (46%) in five years.
The latest suburb has a number of listings that reflect this price change, even for outdated homes in dire need of renovation.
McGrath Coburg director Michael Chan has both a two-bedroom apartment listed at 48 Linsey St, last sold in 1997 for just $134,750, according to CoreLogic, and a three-bedroom at 5 Butler Grove. The latter has a starting price of $1.35 million, while the former is listed between $1 and $1.1 million.
“A million dollars seems to be the new entry point for a property to be fixed up and renovated,” he said.
“We’ve seen a lot of evidence of fully renovated properties selling for over $1.5 million.”
People feel comfortable paying $1 million because they know they can remodel a property and get their money back and more,” he added.
Chan said that despite their tattered condition, the two properties had received a lot of interest so far, mainly from young families looking to renovate who “saw value in the house.”
“Buyers still appreciate period features,” he said.
“The facade may look old and rundown, but people are drawn to the urban landscape, so (these houses) are fetching really good prices.”
Also in Coburg, an old three-bedroom clapboard at 13 Cole Crescent was listed for $1.59 million before recently selling for an undisclosed price.
Jellis Craig Brunswick partner Adrian Petrucelli said $1 million was definitely the new entry point for the suburb, with “shoppers straying into Brunswick, Northcote and Thornbury willing to pay prices close to downtown.” town”.
He said the price point can be attributed to “good land components, access to school, and access to public transportation.”
Similar listings can be seen near Preston, such as a three-bedroom apartment at 131 Cramer St, which has a guide price of $1 million to $1.1 million.
Haughton Stotts sales manager Stefan Dzanovski said the house “will require a lot of work” but is attracting buyers because of its period appeal.
He highlighted that block size, wider streets, parks and access to public transportation were components for which buyers were willing to pay more.
And at 3 Diamond St, a three-bedroom vintage home also has an asking price of $1 million to $1.1 million.
Woodards Preston property consultant Colin Abbas said he had seen “many sales in the Preston corridor for over $2 million”.
He also reiterated that most buyers in the area were looking to renovate older homes as they couldn’t afford to buy in the northern inner suburbs closer to the city.
Nearby Reservoir, prices are also rising to levels similar to Coburg and Preston, with homes like 7 Best St on the market for more than $1 million. The suburb’s median price is currently at $945,000, after rising from $810,000 12 months ago.
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Originally published as $1m landfill: alarming entry point for dilapidated homes on Melbourne’s inner northern fringe