Outer East Melbourne

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The current state of Melbourne's Outer South Eastern market would currently be described as slowly strengthening, according to Herron Todd White’s latest May report.
The property valuation firm says that interest in suburbs such as Clyde, Officer and Pakenham are increasing.
“With continued population growth, current low interest rates as well as readily available land, residents are looking to newly developing suburbs such as Clyde, Officer and Pakenham for the relatively affordable land or established homes.
“This is especially true for first home buyers and young families who are looking for a dwelling as opposed to a smaller inner city apartment or townhouse with limited backyard.
“This area is described as a growth corridor, with prices for new residential land noticeably increasing over the past 12 months as detailed in the below graph,” the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/05/19/Screen%20Shot%202017-05-19%20at%209.55.20%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/19/Screen%20Shot%202017-05-19%20at%209.55.20%20am.jpg" alt="">
Herron Todd White says that investments in public transports, shops and major roads are also increasing the popularity of the area.
“With the government’s commitment to infrastructure and investment in the region including public transport, shopping precincts and major roads, the popularity of the area is expected to continue.
“The main factor that could potentially have an effect on property prices within this region would be interest rates.
“Being that the area is made up of young families and first home buyers, a rise in interest rates may discourage buyers from getting into the property market which could slow the rise in property demand and as such have an impact on property prices.
“However with continued growth in our population, demand for property within the region is expected to remain, with performance expected to be slow but steady,” the report commented.
A four bedroom house at <a href="https://www.realestate.com.au/property-house-vic-clyde+north-125507274" target="_blank">23 Frankland Street</a>, Clyde North (above) has been listed for between $680,000 to $740,000.
Similarly a three bedroom house at <a href="https://www.realestate.com.au/property-house-vic-clyde+north-125505346" target="_blank">12 Montevideo Lane</a>, Clyde North (below) has been listed for between $440,000 to $460,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/19/12%20Montevideo%20Lane.jpg" alt="">
A three bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-clyde+north-125326378" target="_blank">3 Nokota Lane</a>, Clyde North (below) was recently sold for $440,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/19/3%20Nokota%20Lane.jpg" alt="">
Similarly a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-clyde+north-125261662" target="_blank">3 Glenelg Street</a>, Clyde North (below) was recently sold in April for $525,421.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/19/3%20Glenelg%20Street.jpg" alt="">
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Melbourne's Outer South East residential market is beginning to strengthen: HTW

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The current residential market within the outer east of Melbourne is very strong and rising, according to Herron Todd White’s latest May report.
The property valuation firm says that Nunawading, Mitcham, Glen Waverley, Ringwood and Mount Waverley are among the strongest suburbs for the residential market.
“In particular the strong market is evident in suburbs such as Nunawading, Mitcham, Glen Waverley and Mount Waverley.
“Within the outer eastern suburbs the market is also strong in Ringwood, Ringwood East and Croydon.
"Within both areas family homes of 3- to 4-bedrooms are in high demand.
“The rising prices are caused by the lack of supply and high demand with buyers looking for more affordable family housing,” the report stated.
High demand in suburbs such as Mount Waverley and Glen Waverley are driving the prices up according to Herron Todd White.
“The high demand has also caused the market to continue to rise in price.
“At this point in time we do not forecast the market to decline as the demand is too strong.
“However, if a major change in the economic climate was to occur it is possible the market would decrease."
HTW gave an example of the rising prices within the outer eastern suburbs as the sale at 30 Caroline Street, Ringwood. (above)
It sold on the 4 March 2017 for $950,000.
The last sale of the property occurred in December 2013 for $572,500.
“This sale illustrates the high price increase that has occurred within the past four years,” the report advised.
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Outer East Melbourne residential market strong and rising: HTW

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The Outer East region of Melbourne scored the highest weekend auction clearance rate, according to CoreLogic’s latest report.
The property data firm says that out of the 98 auctions in the Outer East region 87.8% resulted in a successful outcome.
This is followed by the North East with 81.7% and North West with 81%.
<a href="https://www.propertyobserver.com.au/images/2017/05/22/Screen%20Shot%202017-05-22%20at%2010.57.30%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/22/Screen%20Shot%202017-05-22%20at%2010.57.30%20am.jpg" alt="">
The West region had the lowest clearance rate with only 74.2% of its auctions cleared.
A four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-vic-malvern+east-125302082">2 Rotherwood Drive</a>, Malvern East (above) was sold for $1,715,157.
Similarly a three bedroom apartment at <a href="https://www.realestate.com.au/sold/property-apartment-vic-ashwood-125297030">2/5 Parkhill Drive</a>, Ashwood (below) was sold for $890,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/22/2_5%20Parkhill%20Drive.jpg" alt="">
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Outer East Melbourne region scores 87% weekend auction success rate: CoreLogic

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Vacancy rate in Melbourne's Outer East region remains elevated and above 10 percent, according to Colliers International’s latest Metro Office report.
“While the Outer East has always been the third pillar of Melbourne’s metro office market, the precinct has now decoupled completely from the City Fringe and Inner East in terms of tenant activity and vacancy," it said.
The vacancy rate remains elevated at 10.7 per cent, a minor increase from 10.4 per cent six months earlier. 
Long-term vacancy rate is relatively high, Colliers said.
The Outer East has traditionally been a supply driven market, in complete contrast to the City Fringe and Inner East, so the average long term vacancy rate is relatively high, at 9.6 per cent.
The supply cycle continues, although at slightly more subdued levels than previous years. Since 2008, the Outer East has added an average of 25,000 sqm of new supply each year.
"We expect that over the year to March 2018, a further 23,000 sqm of office space will be added – the majority of which (14,000 sqm) is at Caribbean Gardens Business Park in Scoresby,” the report noted.
Demand in the Outer East continues to remain subdued, particularly in the secondary grade market, where upgrades to older stock are generally needed for a deal to occur.
“Face rents in the Outer East have remained steady over the year to March 2017, at an average of $308 per sqm for A Grade space."
Incentives are elevated compared to the remainder of the Melbourne Metro market, at 27 per cent.
"We expect these to remain at these levels for the two year forecast period."
There were $168 million worth of sales in the Outer East in 2016.
In Box Hill, there were two sales totalling $50 million, and both of these sales (826 – 830 Whitehorse Rd and 9 – 11 Prospect St) were to developers, the report said.
South East market sees very limited tenant activity in the last half of 2016 according to Colliers.
“The South East market saw very limited tenant activity through the last half of 2016.
Net absorption was -6,300 sqm, even in a climate where supply increased by 4,000 sqm.
Vacancy in the South East is at record high levels, reaching 13.13 per cent in March 2017, against a long-term average of 6.75 per cent.
Despite the high vacancy, incentives are relatively low, at 21 per cent.
This is more due to the nature of owners in the South East, who are predominately local privates.
Given the low demand environment in the South East, and the continued preference of Melbourne’s metropolitan office tenants to locate in the City Fringe, Inner East and Outer East, a significant yield premium can be found on South East office investments.
Average yields for A Grade stock currently sit at eight per cent, well above the Melbourne metro average of 7.09 per cent,” the report stated.
A 1107 sqm commercial office building at <a href="https://www.realcommercial.com.au/property-offices-vic-clayton-502305650">Level 2, 195 Wellington Road</a>, Clayton (above) has been listed for sale.
Similarly, the CubeOne, a 88 sqm to 1080 sqm office building at <a href="https://www.realcommercial.com.au/property-offices-vic-narre+warren-502158830">55 Victor Crescent</a>, Narre Warren (below) has been listed from $409,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/02/55%20Victor%20Crescent.jpg" alt="">
A 139 sqm office building at <a href="https://www.realcommercial.com.au/property-offices-vic-clayton-502309858">C1/756 Blackburn Road</a>, Clayton (below) was recently sold in April this year.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/02/C1756%20Blackburn%20Road.jpg" alt="">
Similarly a 208 sqm office at <a href="https://www.realcommercial.com.au/property-offices-vic-springvale-502258678">97 Springvale Road</a>, Springvale (below) was recently sold in March this year for $800,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/02/97%20Springvale%20Road.jpg" alt="">
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Outer East Melbourne

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