Fo­cus is on outer east

Herald Sun - Property - - MARKET WRAP - WITH PETER FARAGO

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.

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