Posts Tagged ‘Property Market’
There’s no let-up in the exodus as tree-changers continue to eye greener pastures, reports David Adams.
The quest for a more relaxed lifestyle in the wide outdoors continues to draw people out of Melbourne and into rural Victoria.
Since it was first identified as a trend in the late ’90s and early noughties, the tree-change phenomenon has continued to gather pace and while the global financial crisis has led to some slowing in numbers moving out to places further afield, leafy destinations in close proximity to the city remain popular among those looking to escape the rat race.
Bernard Salt, a KPMG property advisory services partner and author of The Big Shift, says many of the established tree-change destinations are continuing to gather momentum.
“If you look at the common denominators, these are places generally within an hour of the urban fringe, maybe two hours from Melbourne,” he says.
Popular tree-change destinations in Victoria — similar to those elsewhere in Australia — share a range of characteristics. “They are always green and pleasant and undulating — no one tree-changes to a dry, flat, wheatbelt town,” Mr Salt says. “They are always pretty places … and they often also have some sort of historical character. The absolute maraschino cherry on top is that there’s some sort of celebrity connection to the town, like Mel Gibson has a farm down the road.”
In Victoria, popular destinations for tree-changers continue to include areas such as Maldon, Creswick and Castlemaine in the Goldfields, as far north as Echuca on the Murray River and, to the north-east, communities such as Kilmore and Seymour, Alexandra and Walhalla.
South-east of Melbourne, destinations include a stretch from Pakenham to Drouin, while to the west, in-demand locations include Inverleigh and Bacchus Marsh, as well as Ceres and Bannockburn, which are just outside Geelong.
“Bannockburn is one that has gone gangbusters,” Mr Salt says.
Seka Powell, a director at ResCom in Bannockburn, says the company has just had the best three months she’s seen in a decade, fuelled by the opening of the Geelong bypass a couple of years ago, which has significantly cut travel times to Melbourne’s West Gate Bridge.
“[And] it’s just 15 minutes into Geelong and 40 minutes to Ballarat, or you can shoot over the ring road and get down to the coast very easily.”
One-acre (0.4 hectare) blocks are available for about $170,000, while half-acre (0.2 hectares) blocks are about $150,000. Established homes can go for anything from the low $300,000s up to the mid-$600,000s. “If you compare it to Geelong, you’re certainly getting more bang for your dollar, no doubt,” Ms Powell says.
While the tree-change movement was sparked by retirees, Mr Salt says the trend has moved beyond them.
“I think we’re now getting people aged in their late 30s, early 40s — Generation Xers — who just don’t buy into the inner-city lifestyle … and are prepared to make different choices.
“So, [it's] a new, younger, generation of people who are prepared to trade down their high-flying job in the city and take something a little less well paid but trade up in the quality of the environment.”
Addressing the suggestion that a significant number of tree-changers have been moving back to the city, Mr Salt says that while it may be happening in certain cases, “for all the people coming back, there must be more people going in the other direction because the numbers keep growing every year”.
“The numbers in places such as Bannockburn, Daylesford, Echuca and the Goldfields just continue to grow.”
In Echuca — the closest Murray River community to Melbourne — Stephen Tonkin, a director of LJ Hooker, says the global financial crisis did have an effect on the number of tree-changers willing to buy at the higher end of the market ($500,000-plus).
But he adds that there remains a “good feed” of buyers from Melbourne. These include people who are buying lifestyle properties along the Murray River to live in immediately, as well as those who are buying low-maintenance properties to let to holidaymakers for a few years before moving in themselves after their retirement.
“I have sold a number of higher-end properties to people who intend to move here in about five years,” Mr Tonkin says.
LJ Hooker offices in northern Victoria recently launched an online magazine specifically aimed at selling to tree-changers.
Over in Daylesford, real estate agent John Evans says the relative affordability of properties and its close proximity to Melbourne remain key factors in drawing people to the area.
“You can buy a fairly substantial property here for the price of a terrace in Fitzroy … You can set yourself up in a pretty reasonable [three-bedroom] property here for the low to mid-$400,000s.”
Blocks of land are still selling for $130,000 to $140,000.
Mr Evans adds that the concept of telecommuting is helping to fuel demand from tree-changers.
“With the advances in technology helping them, they don’t really have to go into the office as much, do they?” he says.
“In the past, they used to call them ‘weekday widows’ — they’d shift to the country and dad would go back to the city to work Monday to Friday and come back on the weekends. But now mum or dad can stay — depending on who the working partner is — the whole week because they can work from home. I just think that opportunity is available to them more than it was a few years back.”
While it’s true most tree-changers move within an hour or two of the city, there are those who are attracted further afield. But Mark Norling, the principal at Elders in Bairnsdale, says there was certainly a marked downturn in the numbers making the move to inland locations around Bairnsdale and Sale when the global financial crisis hit. He adds that the tightening financial situation has seen some tree-changers forced to return to Melbourne in search of work.
That said, he says the company is still selling eight-hectare and 40-hectare lifestyle properties to tree-changers preparing for a move down the track.
“They’re buying them, paying them off and then they’re going to build a house and retire up here.”
Mr Salt, meanwhile, sees no indication that the tree-change phenomenon won’t continue for the foreseeable future.
“The lure of the bush — the lifestyle — is incredibly powerful, whether in fact it’s the tree-change or the sea-change option.
“We are a lifestyle-driven people, you only have to look at our demography to see that. We love the beach and, increasingly, we love these ‘cutie-pie’ little towns within striking distance of Melbourne. [They] just keep on growing, year in, year out.”
Earning a crust in a tiny town
David Cummins made the move from Melbourne to the small community of Chewton, just outside Castlemaine, about two years ago.
As a conveyancer who had previously lived in Northcote for 20 years, he decided to make the move — along with his mother and a family friend — after seeing some of his clients successfully do so.
“Primarily, we needed the business to be able to operate within an hour of the city,” he says. “We needed all the services like broadband, phone services and overnight express post … that kind of thing.”
They subsequently moved into Chewton’s former bakery and have renovated it to provide them with three separate residences, as well as an office from where he now works.
While his clients are still based in the Northcote area, Mr Cummins says he’s had to return to Melbourne for work less often than he had expected.
“It’s all emails, fax correspondence and phone calls, anyway.”
Mr Cummins says he should have made the move years ago and adds that he’s moved not just for the peace and quiet but for the chance to have a change of lifestyle. “It’s fairly relaxed,” he adds
Saturday July 31st 2010
Demand improved at this weekends residential auctions with a clearance rate of 71 per cent recorded, an increase from last weeks 66 per cent.
This result will provide encouragement and confidence to vendors with homes listed for auction between now and the federal election. An interest rate increase next week would reduce that confidence.
There was a total of 541 auctions reported this weekend, of which a total of 382 sold and 159 were passed in, 103 of those on a vendors bid.
This weekend last year saw 374 auctions, well under this weekend and a clearance rate of 87 per cent.
Next weekend the REIV expects 520 auctions.
House Sales in Detail
TOP 5 HOUSES
1. 58 Washington Street, Toorak $3,350,000
2. 42 Bayles Street, Parkville $1,701,000
3. 114 Maltravers Road, Eaglemont $1,700,000
4. 14 Green Street, Windsor $1,652,000
5. 27 Boorool Road, Kew East $1,582,000
TOP 5 BARGAIN HOUSES
1. 4 Burke Road, Sunbury $190,000
2. 21 Fugosia Street, Doveton $300,000
3. 21 Talgarno Street, Broadmeadows $320,000
4. 96 Ashenden Square, Rosebud $321,000
5. 12 Radiata Court, Mill Park $325,000
Flat/Apartment Sales in Detail
TOP 5 APARTMENTS
11. 1/29 Lewisham Road, Windsor $1,265,000
2. 609/108 Bay Street, Port Melbourne $1,200,000
3. 10 Butler Street, Camberwell $1,072,000
4. 43 Myrtle Street, South Yarra $982,500
5. 35/85 Rouse Street, Port Melbourne $970,000
TOP 5 BARGAIN APARTMENTS
1. 1/88-94 Franklin Street, Melbourne $260,000
2. 1/160 Bayswater Road, Croydon South $290,000
3. 2/139 Melrose Drive, Tullamarine $292,500
4. 3/42 Middle Road, Maribyrnong $295,000
5. 6/4-6 Burnewang Street, Albion $298,000
THE completion of EastLink and the first home buyers’ grant has seen property prices boom in Melbourne’s eastern and south-eastern suburbs.
The Valuer-General Victoria, Robert Marsh, released his two-yearly general revaluation of 2.6 million Victorian properties, valuing the state’s residential, rural, commercial and industrial properties at a whopping $1.26 trillion, up 20 per cent in two years.
The Valuer-General uses land and market values to price properties and the results will be used by the state’s 79 councils to calculate rates from July 1 this year.
“It’s important to keep in mind, that an increase in values does not mean an increase in rates,” Mr Marsh said.
The total value of the 2.1 million residential properties assessed rose 20 per cent to $976 billion; the median house price jumped from $399,000 in June 2007 to $460,000 in June this year.
The Valuer-General’s spokesman, Greg Stevens, said properties in in the outer Melbourne suburbs neighbouring the Peninsula Freeway and EastLink had also jumped more than 20 per cent in value, and were singled out as the city’s prime moving real estate, particularly for first home buyers.
“They were the big movers in the revaluation this time around,” Mr Stevens said.
“There’s no doubt the property prices have clearly shown a direct relationship to the first home buyers’ scheme.
“It’s on the Peninsula Freeway arm, in areas such as Pakenham, Berwick, Narre Warren, Rye, Tookarook; they were low-value properties, and their values certainly increased at a faster rate than the average dwelling.”
Dandenong real estate agent Doriano Del Monaco, from Century 21, said it was no surprise that people were heading southeast, saying: “A lot of people are moving this way for a sea change. There’s quick access to the city, which they didn’t have before EastLink was completed in 2008.”
Real estate in the northern suburbs also saw impressive growth of more than 20 per cent. Inner-city Melbourne enjoyed a smaller surge of 5-10 per cent.
The median metropolitan house price has risen an impressive 121 per cent in the last decade; rural property prices had increased 131 per cent.
Bass Coast Shire had the largest growth in the state: 196 per cent since 2000.
The clearance rate from this weekend’s 560 auctions was 67 per cent, a result that is remarkably consistent with the past few weeks indicating that the market has settled at a new level this winter.
Buyers continue to have the upper hand; homes selling at auction are not exceeding vendors’ reserves in the same way that they were before Anzac Day.
There were a total of 560 auctions reported this weekend with 375 selling and 185 being passed in, 123 of those on a vendors bid.
This weekend last year saw a total of 382 auctions held and clearance rate of 86 per cent achieved, higher than this year but with fewer auctions.
The next 3 weekends have around 550 auctions each weekend with a drop the following weekend, to around 130 at this moment, due to the Federal election.
The performance of the residential auction market improved marginally from last week with a clearance rate of 72%, compared to last weeks of 67%.
There were a total of 497 auction results of which 357 were sold, and 140 passed in, with 88 of the 140 being on vendor bids.
The corresponding weekend last year saw 293 auctions being held, and a clearance rate of 85%.
Listings remain high with approximately 1200 dwellings to be auctioned in the next two weeks.