Glen Waverley in considerable slowdown: HTW

Glen Waverley has experienced a considerable slowdown in comparison to this same time 12 months ago, according to Herron Todd White’s latest monthly market report.

The property advisory firm says that this was expected as rapid growth rates were not sustainable and the change in foreign investment rules reduced the number of competing buyers in the market.

"Although those properties located within prestigious school zones are still achieving high market sale prices due to modest competition between local and overseas buyers, it is those secondary properties located outside the school zones which tend to be the slowest," the report noted.

Within Wantirna South, the most favoured price point tends to be between $750,000 and $950,000. For this, buyers can expect to purchase a partially renovated or updated three to four bedroom, two bathroom house on a 600 to 800 square metre block of land. There's also three bedroom house and land package at Lot 334 Harcrest Boulevard (pictured above) that is for sale for $758,930.

This particular price point tends to be favoured by more established families and investors, both groups with a heavy Asian influence. Many buyers are attracted to the area because of the high performing schools and proximity to local amenities.

The report noted that outer east suburbs such as Healesville, Upwey and Tecoma tend to be favoured by young families and first time buyers due to the more prominent sale prices of between $500,000 and $550,000.

Herron Todd White noted that these kinds of properties, although large, tend to be in need of renovations due to their old original condition.

"These properties, although generally quite large, tend to be in their original condition and in need of updating," the report said. "Interestingly however, weatherboard properties tend to fetch a premium in comparison to their brick veneer counterparts, with purchasers favouring this style."

Herron Todd White observed that properties in Croydon that are up to five years old are preferred by buyers.

"With the increasing number of subdivisions occurring or which have occurred within recent years, properties in Croydon which are either new or up to five years old tend to be preferred by purchasers. Similar to other suburbs, families are the predominant purchasers, however retirees looking for a home which requires minimal maintenance and upkeep are also favouring these new units.

"Furthermore the suburb is considered as more leafy than its neighbours which again suits both sets of purchasers."

The price point in Croydon most favoured tends to be between $650,000 and $720,000 and for this buyers can expect to secure a three bedroom, two bathroom townhouse with approximately 150 square metres of living.

In contrast the $1 million to $1.2 million range is perhaps the slowest. The number of properties in Croydon which sit within this price range is limited and those which do come onto the market can take some time to sell, the report said.

HTW suggested buyers of such properties tend to be local residents looking to upgrade to a larger home, however, similar to the outer eastern suburbs, at this price point weatherboards are favoured and tend to sell much faster.

The $1 million plus price seems to be the key pulling factor preventing more sales from proceeding. Purchasers at this price range also have neighbouring suburbs such as Ringwood and Ringwood East to consider, both of which are closer to the Melbourne CBD and benefit from their proximity to newly refurbished local amenities.

Relatively affordable homes (roughly $400,000) in the newer estates in Melbourne's south east are in hot demand.

"This demand typically comes from first home buyers, investors and downsizers," the report said.

"For this price, a new or recently built three or four bedroom home can be purchased depending on the quality of finish.

"Many agents are reporting that their biggest problem at the moment is finding new listings.

"Once they have the listing, the house practically sells itself. According to one agent in Officer, an existing home recently sold within three hours of it being listed on the market."

HTW noted there are still rural lifestyle properties located in parts of Officer that haven’t been overtaken by new estates and some of these sales fetch over $1 million.

However these properties are not in high demand and take far longer to sell.

Buyers in this market commonly represent older couples and families looking for a location further from the city.

Herron Todd White advised that properties the lifestyle market was slow by contrast: "Representing not necessarily a dead market, but a market not as active as that mentioned earlier. It can be assumed that this is a result of the higher price point and a product that’s not in as much demand as those in the estates."