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Why are properties in nowhere suburbs so expensive?
Topic Started: 11 Sep 2014, 05:55 PM (3,463 Views)
Chris
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I have just read a Fairfax article where they had another 'buy now or die' type puff pieces and saw it mentioned a Melbourbe suburb, Donvale. A 'young' couple spent $709k odd on a below average dump in 'fear' of 'missing out' or so the article would have you believe.

The thing that gets me is where they're brought, Donvale has a median of around $800k. For those who don't know Donvale is 40km from the Melbourne CBD, in real terms it is fucken nowhere, so what's the deal?

And Melbourne is surrounded by these very distant but very expensive suburbs, Doncaster, templestowe, Berwick and Rowville to name a few. They all require approx 9-10 times the average annual salary to buy into and yet they offer nothing but ghetto style living.

It seems to massively contradict the bulls 'desirable city' location rational for pockets of overheating and probably scares the shit out if most bears as to how fucked up things have got and how far it will fall once if implodes.

The obvious speculative bubble aside, what's the deal with these very very expensive nowhere suburbs?
Edited by Chris, 11 Sep 2014, 05:57 PM.
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skamy
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Quote:
 
Donvale is a suburb of Melbourne, Victoria, Australia, 19 km east from Melbourne's Central Business District. Its local government area is the City of Manningham. At the 2011 Census, Donvale had a population of 11,795.

A major Melbourne road, Springvale Road, ends in Donvale.

Quote:
 
a suburb that's about to get very expensive with the train line - i hear running along the eastern freeway (i have insider knowlege on this!) houses in the area - esp those that are positioned before doncaster road will be the ones people want. so best to buy in that area for long-term financial gain!

Quote:
 
"Wonderful and quiet family area, close to eastern freeway, shopping centres and schools."
i moved here from the (noisy and congested) inner south eastern suburbs and haven't looked back. in this area you have a lovely hilly and leafy area with some great views of the city. its very safe and is just lovely to see kids riding their bikes and playing on the streets - just like what i used to do when i was a kid growing up in the 70'/80's! every time i have gone for a walk (pushing the pram), people always say hello to me as they collect their mail or as they walk by which is so nice.
there are plenty of shopping centres to choose from - tunstall square, devon plaza, jackson court and the fabulous westfield - all within close range, yet far enough away from the traffic in central doncaster.
if you purchase before doncaster road, being so close to the eastern freeway (which flows 100% better than the m1 'carpark' :) i can get home from the city in 20 minutes in peak hour!
transport is really good and with the propsed doncaster train/rail link (my cousin works for the compay that is doing the feasibility project for the government - and the train/rail link is a goer - its just now a matter of 'when') watch house prices sky rocket. this suburb is a hidden gem :)

http://www.homely.com.au/donvale-manningham-melbourne-greater-victoria
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newjez
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Chris
11 Sep 2014, 05:55 PM
I have just read a Fairfax article where they had another 'buy now or die' type puff pieces and saw it mentioned a Melbourbe suburb, Donvale. A 'young' couple spent $709k odd on a below average dump in 'fear' of 'missing out' or so the article would have you believe.

The thing that gets me is where they're brought, Donvale has a median of around $800k. For those who don't know Donvale is 40km from the Melbourne CBD, in real terms it is fucken nowhere, so what's the deal?

And Melbourne is surrounded by these very distant but very expensive suburbs, Doncaster, templestowe, Berwick and Rowville to name a few. They all require approx 9-10 times the average annual salary to buy into and yet they offer nothing but ghetto style living.

It seems to massively contradict the bulls 'desirable city' location rational for pockets of overheating and probably scares the shit out if most bears as to how fucked up things have got and how far it will fall once if implodes.

The obvious speculative bubble aside, what's the deal with these very very expensive nowhere suburbs?
I never understood the price of bullcreek in Perth. It's in the middle of nowhere and has always sold for a premium. There is a good school nearby, and a university. That is the only reason I can see why anyone would want to live there.
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stinkbug
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New homes are developed, and can't be viably sold below cost. Between land development costs, land price, tax and cost of building it costs heaps to build new homes.

This is one of the things that puts a floor under house prices in cities.
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Massive
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newjez
11 Sep 2014, 06:12 PM
I never understood the price of bullcreek in Perth. It's in the middle of nowhere and has always sold for a premium. There is a good school nearby, and a university. That is the only reason I can see why anyone would want to live there.
bull creek is REALLY well located for surbanite now IMO.... up the road to train or drive straight to city, garden city up the road, fiona stanley on the other side of the freeway, some good schools (rossmoyne is typically the best performing public school ) , bull creek shopping center not bad , murdoch university, canning river foreshore, and not too far from willetton sports club, lakeside, bibra lake, melville glades golf club , straight down leach hwy or south street to freo ....


but it really feels like a dated suburb with horrible planning ... with better frontages or more up to date houses its a great little place
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Old Bloke
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Chris
11 Sep 2014, 05:55 PM
I have just read a Fairfax article where they had another 'buy now or die' type puff pieces and saw it mentioned a Melbourbe suburb, Donvale. A 'young' couple spent $709k odd on a below average dump in 'fear' of 'missing out' or so the article would have you believe.

The thing that gets me is where they're brought, Donvale has a median of around $800k. For those who don't know Donvale is 40km from the Melbourne CBD, in real terms it is fucken nowhere, so what's the deal?

And Melbourne is surrounded by these very distant but very expensive suburbs, Doncaster, templestowe, Berwick and Rowville to name a few. They all require approx 9-10 times the average annual salary to buy into and yet they offer nothing but ghetto style living.

It seems to massively contradict the bulls 'desirable city' location rational for pockets of overheating and probably scares the shit out if most bears as to how fucked up things have got and how far it will fall once if implodes.

The obvious speculative bubble aside, what's the deal with these very very expensive nowhere suburbs?
Donvale 40k from the CBD & ghetto style living - WTF???
As Skamy has pointed out Donvale is 19km, Doncaster 15km & Templestowe 16km from the CBD and are a mix of bush/city style living and are 30 minutes from the CBD.
I think you are confusing the "ghetto style living" with somewhere north or west of the city.
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SittingOnDeFence
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Its what happens when there's too much credit around I guess!

The price doesn't matter
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Chris
11 Sep 2014, 05:55 PM
I have just read a Fairfax article where they had another 'buy now or die' type puff pieces and saw it mentioned a Melbourbe suburb, Donvale. A 'young' couple spent $709k odd on a below average dump in 'fear' of 'missing out' or so the article would have you believe.

The thing that gets me is where they're brought, Donvale has a median of around $800k. For those who don't know Donvale is 40km from the Melbourne CBD, in real terms it is fucken nowhere, so what's the deal?

And Melbourne is surrounded by these very distant but very expensive suburbs, Doncaster, templestowe, Berwick and Rowville to name a few. They all require approx 9-10 times the average annual salary to buy into and yet they offer nothing but ghetto style living.

It seems to massively contradict the bulls 'desirable city' location rational for pockets of overheating and probably scares the shit out if most bears as to how fucked up things have got and how far it will fall once if implodes.

The obvious speculative bubble aside, what's the deal with these very very expensive nowhere suburbs?
I'd kill to live in Donvale - wtf have you been smoking?
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Frank Castle
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Business As Usual

skamy
11 Sep 2014, 06:07 PM
Donvale is a suburb of Melbourne, Victoria, Australia, 19 km east from Melbourne's Central Business District.



Exactly
Why do these dumb bears always make shit up :re:

https://maps.google.com.au/maps?saddr=Donvale+VIC+3111&daddr=-37.7866894,145.1358706+to:-37.7930789,145.0731273+to:-37.8037286,145.0392948+to:Little+Bourke+St&hl=en&ll=-37.781841,144.978333&spn=0.222232,0.393448&sll=-37.798255,144.986057&sspn=0.111091,0.196724&geocode=FTVgv_0dIiqnCClfX30PrTnWajFw1owhdVYEBQ%3BFb9rv_0d_pimCCkPmitbfUfWajHgte3rdFYEEw%3BFcpSv_0d56OlCCmVfbTFykbWajEx-u7rdFYEEw%3BFTApv_0dvh-lCCmjWL3e3EPWajElNMMFjqy5dA%3BFdEGv_0dbP6jCA&t=h&mra=dme&mrsp=4&sz=13&via=1,2,3&z=12
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Robo
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Frank Castle
11 Sep 2014, 10:41 PM
No Frank, they just believe they are entitled to a 1/4 acre 5km from the CBD. Anything else isn't good enough.
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