Nelson Alexander Yarra Update

YARRAUPDATE Banyule

Boroondara

Darebin

Melbourne

Moreland

Moonee Valley

Yarra

Spring 2015 nelsonalexander.com.au

E A G LI A AR RA EI L T R ST US E A B IN 15 Y 20 NC E G

A

HOW DO YOU STACK UP, YARRA? Despite some fragility in the Australian economy, and a number of international economic uncertainties (think Greece and China in particular), the Melbourne real estate market is performing strongly.

Demand-side factors in particular have combined to stoke a heat not seen in the Melbourne market since 2009: interest rate cuts in Feb and May have renewed investor activity; a falling Aussie Dollar (now below $0.75US) has encouraged foreign investment; and high levels of overseas and interstate migration (the VIC population increased by over 100,000 in the last 12 months) has brought new buyers to Melbourne.

Most metrics point to a strong sellers market.

the differences in value growth between

The REIV announced house price growth of

specific segments.

more than 5% in the last quarter alone, with the median $ house price now sitting above

For years, market analysts have been pointing

$700,000 for the first time ever.

to an oversupply of units surrounding the Melbourne CBD, and new unit developments

Auction success was 78% for Melbourne

have been increasing dramatically in middle-

Metro in June – up 7% from June 2014, and

to-outer suburbs too. In fact, growth in new

the highest result for the month in 5 years.

unit approvals nearly quadrupled over the last

And, according to RP Data, homes are selling

12 months to 41.0% (from 11.4% in FY14)

in just 32 days across Melbourne on average;

according to Australian Bureau of Statistics

when you consider that a typical auction

data.

campaign runs over 4 weekends, this figure is hugely significant.

It’s no surprise, then, that RP Data figures show house prices increased by 11.2% across

Strong purchaser demand is driving much of

Melbourne last year, whereas unit prices grew

the market, but supply levels largely explain

by 2.4%. This trend is consistent with what has been seen in Yarra.

This graph shows how median $ house prices have grown in Yarra. The comparison to growth in median $ unit prices over the last year is stark.

While some macro-economic headwinds persist, most signs point to a buoyant spring real estate market, and continued price growth for Melbourne houses.

Property Analytics provides independent statistical information to real estate professionals throughout VIC and NSW, and acts as a Licensed Buyer’s Advocate for property investors and developers who seek above-market capital growth (www.propertyanalytics. com.au).

Analysis is based on data from RP Data / Core Logic, Australian Property Monitors, Real Estate Institute, Valuer General, and Australian Bureau of Statistics

OWNER/BUILDER OR PROJECT MANAGER? The first big decision to make when

licensed tradespeople for certain jobs, like

renovating is whether to run the project

electrical work.

yourself as an owner/builder, or hire a project manager to do it for you.

Hiring a project manager A project manager will oversee the

As an owner/builder

whole process on your behalf, organise

Owner/builders have total control over

tradespeople and suppliers, manage

their project, including budgets and

budgets, deal with council regulations and

timeframes. They must apply for an

generally keep the project on track.

owner-builder permit for works over $12,000, and need to take out domestic

When hiring a project manager, ensure

building insurance.

they are properly licensed, have appropriate insurance, and will be readily

This is a great option for those doing

available. You should also ask to see

minor renovations, or with experience

examples of their previous projects so you

renovating residential properties. But

can get a sense of the quality of the work.

don’t choose this option to save money.

Those who lack know-how can all

Both options have their benefits, so

too easily make mistakes that require

it’s important to do some research to

expert assistance to fix, blowing out

determine which is best for you and your

costs. Owner/builders still need to hire

property.

COMPANY NEWS Paul Lunardi

I

t has really felt like one of the coldest winters in years and yet the property market has remained very buoyant. New sales listings across Melbourne in July were up a staggering 19.5 per cent compared to last year, our auction success rates were consistently above that of the market place and we worked with more buyers and sellers than ever before. Nelson Alexander and our clients have had an excellent winter season.

We’ve also been busy growing our business throughout the winter months and are delighted to announce that the well respected and long standing business Marston & Cook Flemington merged into Nelson Alexander and became our fourteenth office. Combining the local expertise at Marston & Cook with Nelson Alexander’s award winning business, owners and investors surrounding the Flemington/Kensington area now have an even stronger team on their doorstep.

After six months of research and vigorous testing, winter also saw the launch of our new website. It features industry-first changes and innovations that we know will add significant value to anyone looking to sell or lease. If you haven’t already, please take a look and tell us what you think: nelsonalexander.com.au

There’s exciting news on the auctioneering front, too. Tom Roberts and Gordon Hope represented Nelson Alexander at the REIV Senior Auctioneer Competition, where Tom clinched the win. He’ll soon represent Victoria at the Australasian Championships.

Nelson Alexander has a long standing tradition with some of the best auctioneers in the state and we are so very proud.

Congratulations Tom! The flowers are blooming, the weather is improving and we are seeing strong spring time demand from buyers, sellers and investors looking to capitalise on the current property market conditions. If you are considering selling or leasing in the near future, please get in touch.

Thank you for your ongoing support.

Paul Lunardi Managing Director 0419 461 107

COMMUNITY WEDGE Established in 2005, the Nelson Alexander Charitable

NEW WEBSITE LAUNCHED We’re very excited to announce the launch of our newly designed website which went live on the 28th of July.

The site offers a bold new responsive design and a streamlined menu system.

The goals of our new website are to ensure ease of use for everyone, make important information easily accessible, showcase our service offering and most importantly show off the incredible homes we have the privilege to market in both sales and rentals.

Nelson Alexander’s corporate tag line is: People Minded, Property Driven. Our new website has been built with this completely top of mind. We hope you enjoy navigating the new site.

Foundation has distributed over $1.75 million in funds to our local community and by end of year will reach the $2 million dollar mark.

In 2015 the Foundation

May 30th this year, is our

has again assisted a range

single biggest fundraising

of individuals, community

event. Each of our 13 offices

groups and local charities

donates the professional fee

having thus far distributed

from one of their auctions to

$260,000. This diverse range

their community. Last year

has been selected based on

this fundraiser generated

our commitment to engaging

$183,619 and in 2015 we

with charities working in

increased this tally by 19% to

areas in which our staff

$218,522.

indicate an active interest, groups working in the area

All the cheques have now

of homelessness or via

been distributed and the

direct approach for funding

single largest donation of

consideration.

$31,409 generated by the Ivanhoe office, was very

Our major annual fundraiser,

happily handed over to the

Foundation Day, introduced

Australian Prostate Cancer

in 2007 and held on Saturday

Research Foundation.

Foundation Day: Staff presenting one of the cheques.

SALES HIGHLIGHTS IN YARRA SOLD $865,000

COLLINGWOOD Charlotte Street SOLD $1,880,000

FITZROY Bell Street SOLD $2,006,000

CLIFTON HILL Walker Street SOLD $1,180,000

FITZROY Clauscen Street

SOLD $905,000

COLLINGWOOD Bedford Street SOLD $1,730,000

CLIFTON HILL O'Grady Street SOLD $2,831,000

FITZROY Argyle Street SOLD $1,540,000

FITZROY Moor Street

THE BEST REAL ESTATE AGENCY IN 3031 HAS MERGED WITH AUSTRALIA’S BEST LARGE RESIDENTIAL AGENCY, NELSON ALEXANDER. Combining the local expertise of Marston & Cook with the experience, innovation and outstanding track record of Nelson Alexander, home owners and investors within the 3031 postcode now have an award winning team only moments away.

Nelson Alexander’s, non-franchised multi office network is better positioned than any other agency to link the property growth in the inner north of Melbourne and bring it directly to your home.

For a no obligation confidential conversation about your property goals and how Nelson Alexander Flemington can bring them to reality, call us on 9376 2211.