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Melbourne Growth Area Land Market: March 2017 Quarter Six months ago, the average lot price in Melbourne’s growth area land market was $228,000 and the volume of sales were levelling out from new record highs of around 1800 sales per month. What was suggested at the time is that there were signs that supply could have been somewhat constrained, which was likely to put further upward pressure on price escalation. The latest research from NLSP has revealed that the strong activity has indeed... Continue Reading

Great achievement by UDIA VIC and the industry individuals involved. For some time it has been taking 3 weeks or more for titles to be registered after lodging a statement of compliance. Bringing that back to one week will be a great help to Melbourne’s property development industry and our future residents. https://udiavic.com.au/News/UDIA-VIC-News/UDIA-secures-5-day-title-registration-for-members       Continue Reading

With another year closing, we thought we’d take the opportunity to provide an update of what’s happening in Melbourne’s property market. Melbourne Greenfield Market Snapshot: September 2016 Quarter This time last year, the average lot price in Melbourne’s growth area land market was $211k and the volume of sales were at record highs. What was suggested at the time is that there was still room for further price growth, but for volumes to begin moderating at some point. Well the strong... Continue Reading

Things have progressed on a few fronts with respect to the Plan Melbourne Refresh discussion since our last post. Residential Zone Reform Review One of those fronts was the intention to review the rollout of the reformed residential zones implemented by the former Government. A couple of months ago, Victoria’s Planning Minister Richard Wynne announced that an independent advisory committee had been appointed to review the recently reformed residential zones ‘in the context of managing... Continue Reading

Settlers Hill Estate is a 25 Hectare residential subdivision, ultimately yielding around 350 lots ranging in size from 300m2 up to 800m2. Located in a prime position in Melbourne’s northern suburb of Mernda, the estate has easy access to major freeways and arterials, public transport and many nearby community services including a selection of schools, shopping centres, cafes and restaurants, hotels and recreational options. Residents at Settlers Hill will enjoy easy access to a wide range... Continue Reading

So what’s news in Melbourne’s property market at the moment? Melbourne in record home building boom, with outer suburban home and land packages leading the way  The HIA state that new dwelling starts are up more than 26 percent compared with last year, and although they expect it to decline next financial year, the strong pipeline of approved projects in Victoria should see activity remain strong. This makes sense considering how well the growth area land market has performed in 2015.... Continue Reading

Richard Wynne, Victoria’s Planning Minister, recently released a discussion paper titled ‘Plan Melbourne Refresh’, following a report by the Ministerial Advisory Committee (MAC), whom were engaged to provide a review of the current Plan Melbourne document. The Minister says the review was conducted with the understanding that Melbourne’s population is projected to reach almost 8 million by 2051, and to ‘make sure our strategy for the city’s growth and development gives our present and... Continue Reading

Following on from part 1, the above graph has combined the two ‘primary sales indicators’ for Melbourne Metro residential property over the decade from the end of 2004 to 2014. If we analyze the graph a little more closely, you might see the correlation between sales price and volume and therefore its potential impact on the supply / demand equation, especially since 2009. The period from the end of 2004 to the end of 2009 saw a healthy rate of price growth (avg 6.3% p.a.) supported by... Continue Reading

Will be interesting to see how this debate pans out….. A few recent articles worth a read. Labour would re-assess negative gearing Who really uses negative gearing? Are Negative Gearing Days Numbered? Continue Reading

There is lots of information available on the performance of the property market, both historical and forecasting. Some of the leading research companies such as ABS, VGV, REIV, RPdata, CKC, NLSP, and many others do a great job in compiling the relevant data and creating useful information out of it for us to make more informed decisions about property. However, the sheer volume of information can sometimes be a little overwhelming, so where do you start? Sales prices are the usually the... Continue Reading

It’s been quite some time since our last post. A little too long actually. It’s hard to believe yet another year is behind us and 2015 has arrived. Despite all the news regarding economic uncertainties (whether perceived or otherwise), Melbourne’s property market has continued to tick along quite nicely, and proof of this is in the actual results. Above is a graph we have established, utilising a couple of sources to track what we call the ‘primary indicators’ (median sales price and... Continue Reading

We highlighted in an earlier blog about the changes to residential zoning, where the existing residential 1, 2 and 3 zones will be replaced by Neighbourhood Residential (NRZ), General Residential (GRZ) and Residential Growth (RGZ) Zones, and the potential risk to property owners whose sites were proposed to change to NRZ. There has been some development on this topic since then, and it now seems to be a little higher on the radar in the media. Here’s one of the latest articles on the topic…... Continue Reading

                    More Property Development Deals to Protect Everyone’s Interests As highlighted in part 1 of this blog, time is money, and the ‘time value of money’ can provide quite a different perspective on the true value of your developable property. If for example you are the seller (the property owner) of a land parcel which has already been zoned and offers you have received to date have been lower than what you are looking for,... Continue Reading

Valuation by Residual Method As highlighted in part 1 of this blog, sometimes you may not have recent sales data to consider, especially if you are looking at property with development potential in growth areas. For me, comparable sales can be a good reference, but they are not the only method people in the property development industry use to evaluate property with development potential. On many occasions, the residual method is used, where a financial feasibility is built up with inputs... Continue Reading

          Valuation by Comparable Sales If you are considering either selling or buying property in Melbourne, you want to ensure you get the best deal, so what is the property worth? What would that ‘someone be willing to pay’? There are a few methods people use to help determine the value of property, and the most common method is usually by researching comparable sales in your area. There are many resources and websites available to do this and the process to me... Continue Reading

                  Melbourne is undergoing some major planning reform in a number of areas. As well as the reformed zoning, there is change on the way with respect to the planning permit process. The Victorian Government has been working on this for some time now, aiming to improve its efficiency and ‘fast-track’ the permit process to reduce unnecessary delays and costs in Victoria’s planning system. Titled ‘VicSmart’, the new process in ‘less... Continue Reading

            Residential Zoning in Melbourne is changing. If your property hasn’t been re-zoned yet, it will be by the end of June 2014. Considering its wide ranging impact on Melbournians, it is a little surprising that this topic has not been as highly debated in the media as anticipated. In July 2013, the Victorian Government introduced 3 new residential zones into the planning provisions. The objectives are essentially to make the planning system more effective... Continue Reading

  Property Development  & Investment 101 – The Subdivision Process You can add value to an existing home by renovating, but converting a single lot or dwelling into multiple is generally much more financially beneficial. In simplified property development terms, the general rule is as land parcels and living spaces get smaller in size their price per square metre increases, so the more separate spaces you can create, the more profitable your project can be. In theory this could... Continue Reading

                Melbourne Property Watch Here’s some information on the current economy that seems to support that now might be just the right time for property development and property investment. Economics is another fairly complex animal to understand, and all credit to economists and market researchers as their job to interpret all these market forces and make correct trend predictions is truly master-class. Having some understanding of market... Continue Reading

                This question is one which comes up time and time again for many. It can create some great dialogue and almost always ends up with a room divided on their views. So which is the right answer? The reality is that both answers can be right and both can be wrong. Why? Because it’s a very open question. Everyone’s individual situation and objectives are different, and unless you apply it to your particular situation, it’s almost impossible... Continue Reading

              Melbourne Property Watch Here’s an interesting view on current housing affordability. It’s a different take on first home buyers and the perceived declining affordability, suggesting it’s more a lifestyle choice for younger generations who prefer to rent in the inner city suburbs rather than buy their own home. I think this is good news for property investment in general, and for the developing investor in particular, as not only does this point... Continue Reading

      Property Development & Investment 101 – Density and Yields I have previously summarized how the different types of property development in Melbourne are primarily dictated by planning zones. Residential property development in particular can be further separated into different types (like  apartments, units, townhouses, detached houses to name a few) and similar to other real estate types, can be classified according to ‘densities’. In property development terms,... Continue Reading

If you own a property with development potential, why just sell through conventional methods when you can become a ‘passive’ property developer, essentially creating and keeping the developers profit yourself, without the stress! That’s right, you have the opportunity to unlock somewhere between 25% and 100% additional profit by developing before selling. You might be thinking, but how? Can I afford it? How will I find the time? How can I be confident that it will be successful? I believe... Continue Reading

Melbourne’s property market appears to have bottomed out and is on the rise again, particularly since the last federal election in September this year. Many including myself have been waiting for this election to be behind us, as that is what was understood might restore some confidence and once again kick start our economy. The data is showing improved sales numbers and auction clearance rates and property prices are starting to increase. All good signs that consumer confidence is on the... Continue Reading

We already know that building a property portfolio is a proven method of building additional wealth. People prefer to invest in property because it’s a relatively stable and secure form of investment and provides very good leverage. The general rule based upon long-term statistics is that property value would double every 10 years (or increase in value of 7 % per year). After a period of time, your initial property would have grown in worth sufficiently to offer a deposit for the second... Continue Reading

Property Development and Investment Melbourne – Understanding Demand As mentioned in part 1, selecting the right property to develop is primarily about what people need, or the ‘demand’, plus a few other reasons. Assuming that there is no immediate personal need for a particular property type and you don’t already own a property with development potential, we then need to look at what type of property development in Melbourne is in demand, or what does the market need most? Why do I... Continue Reading

Property Development and Investment Melbourne – Personal Needs You may have decided that you want to develop and invest in property in Melbourne but not sure which property type and what specifics to look for. Should you look for Industrial property development, commercial, retail or residential property development? (refer blog on property zones for explanation of property development types). Everyone’s individual situation is different, but I thought I’d provide some information which... Continue Reading

Do you own a property in Melbourne and have been approached by a developer that wants to buy your property? You may have even received an offer and thought that the offer was attractive enough to consider selling. But is this the best price you can get? You may then look for a selling agent to test the market and see if you can get a better offer. Possibly, but you also know there will be extra costs like agents fees which will reduce what is left in your pocket. Either way, it’s highly... Continue Reading

  Similar to other states in Australia, Melbourne property development is governed by what can be a fairly complex planning system with certain controls placed at all levels of government. Melbourne has experienced some change in its planning system over more recent years. The introduction of the Growth Areas Authority a few years ago, and the recent announcement of the ‘Plan Melbourne’ strategy for example, are all aimed at improving our planning system and mapping out future growth.... Continue Reading

If you already own a property in Melbourne you would know that it is a proven method of creating additional wealth. You may not see it like you would see your bank account balance increasing, but property produces excellent capital growth and most of the equity you have in a property is accessible. We also know there are other methods of creating additional wealth like cash and shares for example. Everyone has their own personal preferences to create their wealth, as do I, but if y... Continue Reading

Firstly, I’d like to say hi and thank you for visiting the Landeq website. Researching and undertaking property development and investment in Melbourne can be quite a daunting task, and I must say that I have personally shared that experience with property development early on in my career. So many rules, regulations and things to consider can be overwhelming and yes I have been there myself.  Those whom have worked with me before already know that I don’t like to over complicate things.... Continue Reading