Distressed Property of the Week
34/800 Elgar Road Doncaster VIC 3108
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The vendor is now accepting offers from $420,000-$440,000 on this 2-bedroom apartment located in Doncaster. This has been reduced from $470,000-$517,000 when it was originally advertised in November 2021 and last sold for $460,000 in April 2012. The vendor is hoping the reduced price will attract buyers after spending several months on the market.
According to Abraham Kalamouni and Joe Ledda from Hockingstuarts is located within walking distance of Westfield Doncaster, public transport, schools, parks and access to the Eastern Freeway. The modern open plan apartment features a bright living area, two balconies, secure basement parking and a storage cage.
But is the apartment a good investment? In postcode 3108, the vacancy rate has decreased over the last 12 months to 2.0% in May from 4.0% in May 2022. Asking rents for 2-bedroom units have increased 10.1% over the last 12 months to 17 May 2022. The gross rental yield on 2-bedroom units currently sits at 4.3%.
However, asking sales prices for two-bedroom units in 3108 have risen 1.9% over the year to 17 May 2022. You can view recent sales in 3108 here. It's a good idea to arm yourself with the latest market research, enabling you to possibly drive a harder bargain with the seller, who is clearly keen to get this property of their hands.
Monitor this market market and others with SQM Research’s free property data. Also consider the SQM Property Explorer product for more in-depth data and property price estimator.
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Auction Results
for week ending 15 May 2022
Full individual auction results can be found on our website:
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Auction Listings*
for week ending 22 May 2022
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* The above counts of auctions represent most recent known auction dates for the coming week.
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Real Estate Realities
Vacancy Rates Record First Rise In 2022
Asking Rents Rise Again by another 1.4%
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SQM Research today has revealed national residential property rental vacancy rates rose to 1.1% in April 2022, from 1% in the month of March.
The total number of rental vacancies Australia-wide now stands at 39,616 residential properties, down from 36,868 in March. Sydney, Melbourne and Brisbane vacancy rates remained stable at 1.6%, 1.9% and 0.7%. In the smaller capital cities, Perth, Adelaide, Canberra, Darwin and Hobart, rental conditions eased somewhat with vacancy rates increasing in each respective city; albeit conditions remained tight.
Vacancy rates rose in the Melbourne CBD to 2.9% from 2.4% and rose in the Sydney CBD to 3.5% from 3.4%.
While some regions recorded a slight lift in vacancies, rental conditions remain tight with the average regional rental vacancy rate remaining well below 1%.
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Asking Rents
Over the past month to 12 May 2022, capital city asking rents rose by another 1.4% with the 12-month rise standing at 13.8%. Capital city house rents are recording 12 month increases of 15.3%, while unit rents have risen by 13.1%.
Louis Christopher, Managing Director of SQM Research said:
“Rental conditions slightly improved for tenants over April and our weekly rental listings for May suggest another slight easing. Potentially more property owners are responding to the tight rental market and are looking to lease their properties once again after taking their investment property off the market during the bleakest periods of Covid. So, while it’s way too early to state the worst is over for the national rental market, we may be close to that point. Clearly landlords remain confident as they lifted their asking rents by another 1.4% over the past 30 days.”
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Real Estate Realities
Charles Fairfax Flips $15m Sydney House
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The youngest son of late lady Mary Fairfax, Charles Fairfax has put their Spanish mission-style house back on the market for $14.95 million. Charles and wife Kate purchased the Vaucluse estate last year in May and have not renovated or lived in the home.
Charles and Kate's decision to sell the home purchased at auction, comes as Woollahra council approved the demolition and rebuild of a house located next door, despite Fairfax's objections.
According to sources, it is suggested that Fairfax will remain a Dover Heights local, as he purchased a home in 2017 for $5 million. Fairfax isn't a stranger to top real estate in Sydney, as he grew up in the Point Piper estate Fairwater, "held by the family since 1901 when it was purchased for £5350 by Sir James Fairfax, and sold by his mother’s estate in 2018 for $100 million to tech billionaire Mike Cannon-Brookes."
Fairfax will likely be hoping for a sale of $15.9 million in order to recoup his losses, as his purchase last May came with a $983,000 stamp duty bill. From a market point of view, Fairfax's timing couldn't be better as "Vaucluse’s median house price rose 42.8 per cent in the 12 months to March."
More . . .
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Black Dragon's Words for the Week
"You only live once, but if you do it right, once is enough”
~ Mae West
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SQM Research Housing Indexes
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SQM Ratings Newsletter ☆☆☆☆☆
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