Suburb spotlight: Glenroy undergoing "gentrification"
Located in Melbourne’s northwest, 13 kilometers from the CBD, Glenroy is an up-and-coming suburb that has grown in popularity over the years. This is due to an increase in medium-density developments favoured by first-home buyers and young couples, residential amenities in the area, as well as its proximity to the CBD.
Dr Andrew Wilson, senior economist for Australian Property Monitors, told Property Observer that Glenroy is “part of the gentrification process”.
“The Northern suburbs – COBURG, Pascoe Vale, Glenroy, they’re all being gentrified. Glenroy has easy access to reasonable levels of residential amenities and infrastructure. It is a developing lifestyle market – typical of areas such as Brunswick,” he said.
He added that property in Glenroy is more generally affordable compared to suburbs in the area.
“We’ve seen lots of redevelopment and medium-density developments, which are directed towards that first homebuyer or young couple-type of buyer,” he said.
Dr Wilson has also noticed a shift in the types of buyers in the area, which he attributes to an “emerging cosmopolitan lifestyle”.
With many properties undergoing redevelopment, Wilson believes the area will continue to increase in popularity. Trends point towards smaller types of property or unit development.
According to the latest RP Data report, median unit prices in Glenroy have fallen by 9.4% compared to last year’s figures.
Dr Wilson says there has been an “overshoot with unit development” as developers tend to overshoot underlying demand. However, he does not believe there will be an oversupply of medium-density developments in the middle-ring suburbs.
Barry Plant Glenroy managing director Angelo Nestor, who has 30 years’ experience in Melbourne’s northern suburbs, told Property Observer the property market in Glenroy has “picked up quite well”.
“The interest rates have helped the market kick a little bit more. The last twelve months have been slower but it’s picked up because of the interest rates. The change in government has helped as well,” Nestor said.
He notes that investors have fueled most buyer activity in Glenroy. In particular, investors are purchasing units in new developments. First-time home buyers are also making a resurgence, preferring townhouses over developments.
Nestor also agreed that the sharp drop in median unit price over the last year is due to oversupply in the area.
“When the market was going really well, the developers came in and there was a lot of development going on. When the market pulled back, a lot of developers were caught with units. But that’s changing now,” he said.
According to the latest RP Data report, the median house price for Glenroy is $419,000, down 1.9% on last year. The average discount required to sell a house is 6.6%, while private treaty sales average 75 days on market.
The median asking rent for a house in Glenroy is $320 per week, while gross rental yield currently stands at 4%.
The median unit price in Glenroy is $385,000, down 9.4% on last year. The average discount required to sell a house is 4.6%, while private treaty sales average 84 days on market.
The median asking rent for a unit in Glenroy is $300 per week, while gross rental yield currently stands at 4.4%.
