Significant investment in your local area could mean one or all of these three things: a rise in the capital value of your home, an upward trend in yields or a reduction in tenancy vacancies.
One of Melbourne’s best examples this decade is Ringwood. According to CoreLogic’s propertyvalue.com.au the median house price in Ringwood rose around 10% in the past 12 months. Due in some part to the impressive amount of investment from Government and Private stakeholders.
Works about town include Maroondah Council’s $60M development of Aquanation, a $66M upgrade of Ringwood Train Station and Bus Exchange, and the $665M refurbishment of Eastland by its owners, the Queensland Investment Corporation. Add Costco and EastLink to Ringwood’s amenities and you can begin to understand why such strong investment has had a positive effect on Ringwood’s house prices.
PhilipWebb General Manager of Sales Anthony Webb says the scarcity of prime land to develop and the increased quality of local schools is also driving prices up.
“Vendors can be confident that prices should continue to rise.’’
According to Maroondah City Council’s YouTube video ‘Creating A Strong Vision: Maroondah City Council’ the Ringwood Metropolitan Activity Centre is an example of quality long term planning, shared vision of different levels of government and key private sector stakeholders, and consistency of policy and decision making which has provided investor confidence’.
With EastLink right on the doorstep, the city commute is no longer the long haul it used to be, and a huge untapped sector of the buying market is looking to Ringwood as a suburb worth a second look.
Many areas of Ringwood enjoy fierce competition at auctions as PhilipWebb Real Estate saw when 20 Barkly Street, Ringwood, sold under the hammer on September 19 for $1.405M. That is around $1412 per square metre. The dual-title block offered a two bedroom home at the front and a one bedroom house at the rear. For the investors, there was the assurance of low vacancy rates and a potential yield of over $3,500 per calendar month. There was also potential for developers to build three to four units on the 995sqm (approx.) block subject to council approval.
On the same day 17 Patterson Street, Ringwood East sold for $1.1M or around $1208 per square metre.
Incredible results buoyed by the confidence of government and private investment.
Anthony Webb added that an up-to-date appraisal for your home was vital to understanding the yearly growth in equity.
For a free appraisal, please call 9842 1477.