articles
- NEW SOUTH WALES OFFICE NOW OPEN!!!
- What makes a property developer?
- Subdivision Permit Cost Set to Jump - By Reid Sexton
- In city's middle-ring burbs, many towers rise By Simon Johanson
- Zones. Where to find them and what they are for.
- How long will my planning application take to process?
- How many units I can I fit on the property?
- Things to look for when purchasing a development site
- Melbourne Property Forecast
- ResCode and Guidelines
- Council Nod for High Rise - By Donna Carton
- Doing their block over subdivision - By John Dagge
- Subdivide & Conquer - By Kate Robertson
- Underlying Factors or Risks When Subdividing
- Property Developing Risk Versus Reward
- Subdivision and Town Planning Approval
- Subdivision Approval (SA)
- Town Planning Approval (TPP) Definition
- Uncertainty and Certainty of Planning Permits
- Property Subdivision Factors to Consider
Melbourne Property Forecast
As Melbourne’s leading Dual Occupancy developers, we often get asked what we believe is happening with property prices at the moment.
We have to remember though when developing your backyard, if a brand new townhouse is worth as much as your existing house, as is often the case, you generally have the “buy one a get one free” scenario. Take for example that if after your build and permitting costs are taken into consideration, you will walk away with a “free” home– either to sell or to rent at a positive cash flow scenario. So as developers, even when the market is slow (or is perceived slow by the media) we are not too concerned on property market stagnation. To the contrary, the below property market forecast is indicating prices will grow at around 9% this year!! See bellows report from BIS Shrapnel.
“Residential prices in Melbourne are set to continue increasing, according to the BIS Shrapnel three-year forecast. BIS Shrapnel is an independent economic forecaster and property analyst company. They are often looked to for their insights into the future conditions of the real estate, nationwide. The estimated amount for the growth was 19% percent, which included inflation.
Further findings for Melbourne's property market from BIS Shrapnel stated that the median home price in June 2009 was around $425,000. This figure would be expected to increase. A lot of market activity was predicted to be amongst those who were looking to upgrade their property.
A rising deficiency of dwellings will maintain upward pressure on rents, while the reductions in interest rates have boosted affordability in Melbourne to its best level since 1999. This is likely to encourage demand as economic growth begins to strengthen through 2010.Over the 2009 to 2012 period, we are forecasting Melbourne's median house price will rise by a total of 19 percent, which is nine percent growth in real terms.”
By Chris Williams
Specialist Subdivision Consultant
Property Subdivision
