Home' API Magazine : October 2014 Contents OCTOBER 2014 n APIMAGAZINE.COM.AU n 87
And it’s for these reasons, Bird says,
investors are buying extensively in the
suburb, a fact which has underpinned much
of its price growth over the past quarter.
“Units and apartments in the area are
highly attractive to renters and vacancy rates
are generally low,” he says.
Noel Jones Real Estate director Michael
Nolan says the area also offers post-war
brick veneers built in the 50s and 60s, and
townhouse developments from the 70s
and 80s, with new apartments also now
“In recent years, townhouse development
has been overtaken by apartment
construction along major roads and around
shopping and transport hubs,” he says.
A Balwyn boy himself, Nolan grew up in
the suburb, and today he’s been in the local
branch role for more than 20 years.
The suburb is located within a central
section of the City of Boroondara, says
Nolan, which is Aboriginal for ‘Shady Place’.
He says investors are drawn to Balwyn
due to a number of factors including its
residential quality and size; proximity to
great suburbs and CBD; strong historic
capital growth; excellent transport and
shopping infrastructures; and quality
Entry prices for older style units are around
$460,000-plus, according to Nolan. Homes
in North Balwyn start from $950,000, while
Balwyn Central achieves well over the
million-dollar mark at $1.5 million-plus,
and a luxury new home would see a figure
upward of $3 million.
The suburb’s rental demand is particularly
strong in four main areas, Nolan says.
Entry level flats and villa units generally
rent for about $450 per week; family homes
rent in the range of $600 to $800 per week;
new apartments rent from $600 per week
upwards; and luxury family residences
rent in the range of $1000-plus per week,
according to Nolan.
There’s an inner ring that extends out from
places like Richmond, Carlton and Albert
Park, Kelly says, and then you have this
middle ring that Balwyn falls into.
“ Traditionally Balwyn hasn’t been an
apartment market but we’re finding that the
new stock is coming on, so that will push up
your average apartment price,” he says.
“Whenever you get an area where it’s all
new stock coming in, the data on the median
analysis will show it’s jumped quite a bit.”
But Balwyn’s market hasn’t been all smooth
sailing. The suburb was negatively impacted
by the GFC.
“It dropped in median averages by about 20
per cent from memory. So it was dramatically
hit going back a few years,” Kelly says.
“It was one of the suburbs, for whatever
reason, that appears to be more volatile over
the past decade, and what we’re seeing now is
a bit of rebound that I think is due, in part, to
being adversely impacted more so than other
areas a few years back now.
“It actually fell back too far in our minds,
and now it’s actually coming back to where it
deserves to be.”
Kelly adds he’s also a resident of Balwyn,
having purchased in the suburb in 2008.
“It was really about affordability and being
as close to the city as we could with the
money that we had,” he says.
“Demand in Balwyn comes from young
families who are looking for their next home
after selling an existing apartment or home
further out and now are trying to get in
closer. Lots sizes are attractive also.
“ They’re the usual buyer in there. It’s a
good, family type of area.”
It’s not uncommon for new homeowners in
the area to purchase and live in the existing
property for one or two years, Kelly says, and
then demolish and build brand new.
“ There’s been a regurgitation of housing
stock through there,” he says.
With a new and refurbished Doncaster
shopping centre not far away, shopping is
definitely one of the pros of the area but it
does also have its cons.
“ The thing it probably lacks is a bit of
public transport,” Kelly says.
“ Though there are some trams, there’s no
real train line through there. It would be
perfect if it had that.
“It’s 13 kilometres out from the city where
we live. But I guess you’re going to pay more
the closer you get to the train lines. Transport
is becoming more and more of an issue.”
Known for its multiculturalism and its array
of cafés and cuisines, Box Hill is the second
Victorian suburb sneaking its way into
Residex data for unit growth over the past
quarter. Demographically, the suburb is a
popular choice with the Chinese and Asian
sector of the market according to Anthony
Webb, the general manager of local real estate
“As there’s also a lot of infrastructure, Box
Hill is popular with investors and tenants,”
Located about 20 kilometres from
Melbourne’s CBD, interest in the suburb is
maintained by its abundance of apartments,
units and townhouses. It’s also bolstered by
beautiful character homes and large block
sizes, according to Webb.
Some of the main industrial drivers in the
area include health services, education, retail
and the $120 million development of a new
BALWYN FACT SHEET
Balwyn has a mixed supply to demand
situation. There are few rental properties
available to tenants, however there is an
oversupply of for-sale listings. Discounting
is heavy. Incomes in Balwyn are growing
slower than the Victoria average. The
proportion of renters to owner-occupiers is
below average for Victoria. Rental vacancy
rates are a tight 2.4 per cent. Stock for sale
levels are up by 32.9 per cent year on year.
Source: SQM Research, www.sqmresearch.com.au (accurate to June, 2014)
f Access to some of
Melbourne’s best schools.
f Proximity to CBD,
which is only 10km away.
f Close proximity to great local suburbs.
WALK SCORE6: 72
Balwyn is the 67th most walkable
neighbourhood in Melbourne.
There are about 66 restaurants, bars and
coffee shops in Balwyn.
People in Balwyn can walk to an average of
two restaurants, bars and coffee shops in
n Mortgage holders
n Separate house (3744)
row or terrace house,
townhouse etc (1112)
n Flat, unit or
n Other dwelling (30)
10-YEAR AVERAGE ANNUAL GROWTH5
Victoria n THE STATES
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