There is an Edwardian single fronted home in Chomley Street, Prahran that sold in October 2020 for $1,435,000. The same property sold on Friday for $1,860,000. That’s a 30% price increase in exactly 12 months.
The home had some minor cosmetic updates and presented better than last time, but essentially it’s the same house, same land, same location. Different market.
Last week we sold a Victorian cottage in Duke Street, Windsor off market for $1,450,000. They purchased it in April 2019 for $1,102,000. Also no major improvements. 31% growth in two and a half years.
In the past seven days we have seen family homes in Malvern, Malvern East and Glen Iris sell for a million dollars above expectation.
Between 2016 and 2020 a double fronted Federation home on 600sqm in a good street in these suburbs would sell for mid to high $2m’s. Now they are selling for mid to high $3m’s.
It’s as if the prices have jumped a million dollars in a year or two.
While it’s hard to fathom, and certainly hard to stomach as a buyer right now, there are plenty of explanations for this staggering capital growth.
Cheap money, asset price inflation, higher savings, working and schooling from home and the emphasis on upgrading one’s accommodation, etc.
Whatever the cause, this seems to be the new normal.
Just as a litre of petrol used to cost $1.30c and is now $1.80c, a family home in Malvern that used to cost $2,600,000 is now $3,600,000.
And if that’s what it costs, that’s what it costs. There are plenty of people who still want to drive petrol cars or live in a family home in Malvern who are happy and able to pay for it.
Competition continues to be fierce out there for quality family homes. Unlike petrol stations, these properties are hard to find. There’s no signs of prices easing anytime soon.