Circling The City - A Snapshot Of The Middle And Outer Suburbs And Regional Victoria

The Sunday Age

Sunday April 17, 2005

Compiled by Susannah Petty

A snapshot of the middle and outer suburbs and regional Victoria.

PRIVATE SALE

STUNNING 180-degree views of Melbourne's skyline help make this 306-square-metre house at 28 Watts Parade, Mount Eliza, stand out.

It has a main bedroom with private terrace, a spa, billiard room and a separate original cottage. Hall & Hall Real Estate (9787 1200) is asking for $2.3 million through private treaty.

THE MARKET

PEARCEDALE 3912

ALTHOUGH still a relatively hidden rural pocket within 40 minutes of the city, Pearcedale is a tough market for buyers to crack, says Shane Van de Wardt of Peter Madigan Real Estate.

While always tight, the firm's listings have drained back to just eight over the past few months, with large allotments the hardest to find.

"Demand is extremely high because supply is extremely short and there's no development in Pearcedale," Mr Van de Wardt says.

Sales stock lifted a little six months ago on the back of interest rate uncertainty, he says, but much of this has since sold and not been replaced.

Consequently, he says, prices have stayed steady.

"Whether we can absorb another interest-rate increase is another story," Mr Van de Wardt says.

"But the two we had 16 months ago haven't affected buyers. The one last month got rid of the tyre-kickers, which is a good thing. The number of inspections has increased, but the number of sales hasn't."

The majority of Pearcedale's stock is farming land - predominantly five-hectare lots - with a small township of around 600 houses, also on sizeable blocks.

Mr Van de Wardt says many property sales are to locals, with the remainder going to peninsula, Cranbourne and interstate residents.

Properties range in price from about $240,000 for a basic, three-bedroom residence in the township up to more than $500,000 for a large farm.

"Some agents from outside the area are putting $700,000 on 10-acre (four-hectare) properties, but the market won't (accept) that," Mr Van de Wardt says.

Rentals are similarly tough to secure, with just four listed for the entire area, with a starting price of about $200 a week.

THORNBURY 3071

THORNBURY'S predominance of period housing is helping it hold its own against a general market softening, says Tom Riddell of Thomas Riddell Real Estate.

"I don't think prices have dropped or plunged," he says.

"Naturally, in this area, the period homes are still sought after and are totally unaffected (by market fluctuations).

"But it probably boils down to, things are a little bit harder to sell, rather than a dropping in price."

Mr Riddell says historic houses with minimal "tampering" will still sell quickly, but he concedes the sales rate has slowed from last year.

As with much of Melbourne, listings are also tighter, perhaps helping prop up some prices.

"If you're out there looking, you've probably got a good chance to pick up something with a genuine vendor, but there's not much on the market," Mr Riddell says. "Probably, roughly speaking, there's only half the real estate we had last year."

Thornbury has long sat behind Northcote in the pricing stakes, but Mr Riddell believes the gap is starting to close.

He says Thornbury's starting point is now about $300,000 for a unit and about $350,000 for a basic house. Renovated properties push closer to $400,000, Mr Riddell says, while the premium end of the market commands close to $1 million.

Rental is consistently strong due to Thornbury's train and tram links to the city and a good supply of apartments, he says.

House rentals hover about $200 a week.

Compiled by Susannah Petty