Collingwood's East-West link buying dilemma
A three-bedroom cottage only metres away from the proposed Eastern Freeway exit in Collingwood passed in at recent auction as the crowd stood quiet.
Now an apartment located directly opposite the entire block of homes set to be demolished has appeared on the market, but the agent declined to comment on the East-West Link debacle.
Property Observer takes a look at the suburb of Collingwood and what affect the East-West Link project is having on the market so far.
A circa 1900 freestanding Victorian cottage at 15 Forest Street passed in at its July 20 auction but secured $1.04 million after negotiations.
The cottage has undergone extensive renovations and extensions 13 years ago and features an entertainer’s kitchen, two bathrooms and open fireplaces.
It was listed with Rolan Paterson of Nelson Alexander.
A couple of streets away on Bendigo Street, 118 homes and businesses are set to be demolished to make way for an East-West Link off-ramp.
A one-bedroom, one-bathroom apartment on the safe side of Bendigo Street has been put on the market with an asking price of $239,000.
It was purchased in May 2009 for $217,500, reflecting an approximate 2.25% annual price appreciation.
It is currently tenanted for $280 a week, reflecting a 6.09% rental yield, but securing a tenant in the future may prove difficult.
Listing agent Paul Markovic of Peter Markovic Realty declined to comment on the matter and said he was tired of all the media approaches.
“I’m sure you can appreciate how annoying it is – I’m tired of it,” Markovic told Property Observer.
Meanwhile, a two-bedroom home on Gold Street – a few hundred metres from the proposed East-West Link – is on the market for $600,000 plus.
The home features high ceilings and period features as well as an entertainer’s courtyard.
Listing agent Edwards Hobbs says he doesn't believe it's in an affected area, however could deter some buyers.
"For some buyers it possibly could, every property we sell there’s always a downside.
"If the buyer has to adjust his price, he will, but we're trying to downplay it and for it not be a focal point," says Hobbs.
It is scheduled for a August 17 auction through Edward Hobbs and Tabitha Robb of Biggin & Scott Richmond.
The median house price in Collingwood is $730,000 and the median apartment price is $520,000, according to RP Data.