Focus is on outer east
DEVELOPERS are swooping on big parcels of land near activity centres to tap into a growing apartment and townhouse market seeking to live in Melbourne’s outer eastern suburbs.
A 2500sq m double block directly opposite Ringwood East’s train station sold under the hammer for $3 million last weekend.
While it was the highest price paid for a residential property in Ringwood East, according to CoreLogic RP Data records, it’s a fair way below what developers have paid for other properties in the east in the past year.
Ray White, Glen Waverley, agent Ryan Trickey auctioned the two Ringwood East homes, combined into one property by the same vendor.
He also recently sold two properties with development potential, thanks to their commercial zoning, in Montclair Ave, Glen Waverley, for more than $5 million each.
And he sold a 5220sq m property at 431-439 Burwood Highway, Vermont South, for $8.5 million in an off-market transaction in March.
Mr Trickey said developers were feeding on demand for new apartments and townhouses near activity zones in the east.
“Everyone says there’s so many apartments going into the market. (But) I think you’ve got to be careful about generalising about geographic locations,” Mr Trickey said.
“In the Melbourne CBD there’s a huge amount of activity.
“But if you come out to the suburbs, there are still a lot of young professionals that don’t want to live necessarily too far from mum and dad and don’t want to live too far from an area they know pretty well.
“The public transport system out here is not bad. You can get into the city from Glen Waverley in 25 (minutes) or half an hour.”
The Ringwood East auction added to the 76.8 per cent clearance rate recorded by CoreLogic RP Data last weekend. The outer east enjoyed the strongest results, with 89 per cent of properties knocked down.
A six-bedroom home at 8 Ferdinand Ave, Balwyn North, was Melbourne most expensive home sold at auction last weekend, snapped up for $3.6 million.
There are about 670 auctions scheduled across Melbourne this weekend.
This six bedroom home in Balwyn North sold for $3.6 million on the weekend.