The Block regular Frank Valentic says suburbs like Elwood, Richmond and Reservoir could follow in Toorak’s footsteps, and reward buyers who get in early.

Advantage Property Consulting director and buyers advocate Frank Valentic said ripple effects from Melbourne’s most expensive suburbs were already pushing into more affordable postcodes, where gentrification, infrastructure upgrades and buyer demand were starting to overlap.

“Elwood, it’s Brighton’s neighbouring suburb and can benefit from ripple effect,” Mr Valentic said.

“Richmond, it’s Toorak’s neighbouring suburb and is more affordable.”

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Mr Valentic added that buyers willing to take a long-term view could also find opportunity in Reservoir, Preston, Dromana and McCrae.

“I think areas like Reservoir and Preston still offer great bang for buck,” he said.
“Peninsula suburbs such as Dromana and McCrae are great value for the water views you can get.”

While some suburbs have grown by more than $3m since the 1980s, Mr Valentic said the fundamentals of capital growth remained the same, starting in prestige areas and spreading outwards.

“They usually follow the ripple effect, the ripple starts in blue chip suburbs and spreads outwards to more affordable area,” he said.

The Advantage Property Consulting director said even outer suburbs like Mill Park, Seaford and Frankston were now seeing signs of gentrification.

“Yes, some outer suburbs 20km plus from Melbourne are seeing gentrification,” Mr Valentic said.

He also said young buyers were often discouraged by today’s prices but could still build wealth by getting a foothold in the market.

“Yes, they would feel discouraged, but there are still opportunities to get into the market somewhere, even if it’s buying a unit or apartment.

“It’s important to stay positive and try to get your foothold in the market.

“You may need to be more flexible on your wish list and suburb criteria.”

Mr Valentic warned buyers to be cautious in certain inner-city markets.

“High-rise inner-city apartments and surrounding inner suburbs where there is an oversupply of properties compared to demand,” he said.

Prominent Melbourne buyers advocate Cate Bakos said buyers in Melbourne’s top tier are more focused on rarity and long-term legacy, when speaking about prestigious St Georges Rd strip.

“At the end of the day, how do you even peg a value on something this rare?” Ms Bakos said.

“A huge block in Toorak versus a small one elsewhere, it’s not just about square metre rates.

“The valuation model becomes more subjective. It’s an art, not a formula.”

Ms Bakos said high-net-worth buyers were not necessarily swayed by borrowing conditions or market volatility.

“They’re not betting the farm, they’ve got multiple income streams and advisers around them,” she said.

“If it’s their dream home, they’re picturing what they can create, not necessarily what the bank would lend.”

“These kinds of buyers aren’t asking what something’s worth to the market. They’re asking what it’s worth to them.”

Kay & Burton Stonnington director Darren Lewenberg said prestige buyers today often have family backing or wealth built over generations, and tend to be more considered in their approach.

“We’re seeing well-supported younger buyers from tech, internationally mobile professionals, and family-backed purchasers,” Mr Lewenberg said.

“Stonnington’s prestige market has long attracted families with generational wealth, high-income professionals, and increasingly, global buyers seeking security, education, and lifestyle.”

“If anything, today’s buyers are more considered, less driven by urgency, more attuned to long-term value.”

Mr Lewenberg said even as prices have surged, buyers were not showing signs of compromising on land size or location.

“We aren’t seeing widespread compromise in terms of location or land size; the prestige segment remains resilient, underpinned by limited supply and enduring demand.”

Asked whether Melbourne’s top-tier price levels were sustainable, Mr Lewenberg said financial flexibility and long-term vision remained key.

“At this end of the market, long-term vision and financial agility continue to define success and therefore feel confident in the long term viability and sustainability of the top-end market,” he said.

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The post Block buyer Frank Valentic reveals Melbourne suburbs tipped to boom appeared first on realestate.com.au.

In the market for a bargain project and a UK adventure?

A doer-upper called Love Cottage or Bwthyn Cariad is on sale for a bargain price – but is hiding a grim secret that could prove too much for some buyers to bear.

The two-bed home in Pembroke Dock, Wales, boasts picturesque river views and comes with a starting price of just £1 (AU$2) but needs a lot of work to make it habitable once more.

At present, the cottage comprises two lower ground floor rooms and two bedrooms upstairs, along with an extensive garden that stretches down the rear.

Listing images make it clear the home has seen better days with mould and water stains covering walls, floors and ceilings.

The bathroom is covered in rubble, as are at least two other rooms.

The backyard is heavily overgrown and will require serious attention.

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However, the cottage’s coastal location could make it an attractive offering for bargain hunters.

Sean Roper, of Paul Fosh Auctions, who is taking the property to auction in late June, said the property could work as a holiday let, long-term rental or renovation project for a keen developer.

“The mid-terraced property has certainly seen much better days,” he said.

“But there is plenty of scope presented by what is there and added to that the property has a very large garden which could also be exploited and an auction guide price of just £1!”

He went on to say the expansive garden extends down the rear of Meyrick Street, offering “a number of development opportunities” subject to planning permission.

“The first could be to renovate and refurbish to a high standard for holiday lets due to its proximity to many of Pembrokeshire top tourist areas,” Mr Roper said.

“Typically, a refurbished two-bedroom cottage would generate in the region of £28,000 (AU$58,000) per annum net as a holiday let.

“A second option could be to renovate and refurbish to a high standard as a long term let.”

Mr Roper said demand could be high for a refurbished property like this is marketed to young professionals and local workers – with the potential for £900 (AU$1872) per month in rent.

Another option would be to do it up and sell it for up to an estimated £185,000 (AU$384,819) or sell the garden space.

“Parcels of land could be sold to individual houses along Meyrick Street and then retain the house with a portion of the remaining garden space,” Mr Roper said.

The post Derelict seaside cottage to be auctioned for $2 appeared first on realestate.com.au.

For years, the sellers of 303 The Boulevard, Ivanhoe East have enjoyed one of the suburb’s most serene and sophisticated addresses, a tri-level masterpiece with panoramic parkland views, an alfresco cabana, and a sun-drenched conservatory living zone at its heart.

Now listed with a $3.75m-$4.1m price guide, Barry Plant Ivanhoe director Theo Poltis said the striking residence offers buyers a chance to secure a fully renovated home with both family flexibility and entertainer’s wow-factor, all in one of Melbourne’s most tightly held pockets.

“It’s perched right at the top of the hill with a stunning outlook and an incredible number of living zones, it’s the full lifestyle package,” Mr Poltis said.

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Set on a 1000sq m block, the home’s park-facing position is matched by a spacious interior that features two main suites, a gym, butler’s pantry, cellar, and six bathrooms, with zoned energy-efficient living across three levels.

Mr Poltis said the layout has been really well thought out

“The layout has been really well thought out,” Mr Politis said.

“You’ve got a main suite downstairs, two more bedrooms to the rear, and a second master upstairs, it suits a range of family setups, from young kids to teens or grandparents.

“Everyone can enjoy their own space.”

With multiple living zones and a smartly designed open-plan kitchen and meals area, the home flows out to a stunning poolside entertaining zone and landscaped garden, complete with a sleek cabana and bathroom.

The Barry Plant Ivanhoe director said the home was absolutely designed for entertaining.

“The kitchen opens straight onto the alfresco area and the garden wraps around you, it would be a dream setting to host in.”

Other standout features include a climate-zoned interior, motorised blinds in the conservatory and solar panels, helping reduce energy costs while maintaining year-round comfort.

“The home is incredibly efficient, all the living zones can be zoned off, so you’re never heating or cooling the whole space unnecessarily,” he said.

Expanses of double glazing frame tranquil views of the Yarra parklands and city skyline, while the French travertine entry, glossy timber floors, and glass-panelled staircase elevate the home’s luxury credentials.

With land values in Ivanhoe East already pushing $2.5m to $3m for original homes, Mr Politis said the offering is well placed for prestige buyers looking to trade up without taking on a major build.

“There’s nothing to do here — it’s a finished product,” he said.

“Many people have been here 30, 40, even 50 years.

“When they do sell, they’re often just trading within the area. That speaks volumes about how loved it is.”

The property is expected to draw strong interest from local upgraders who already live in the suburb.

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Nearly half of Australian renters would consider relocating to another suburb or city if it meant paying less rent — but only if the savings hit a clear tipping point, new data has revealed.

Among renters who would up sticks for a discount, 22 per cent say they’d only move if rent was at least 20 per cent cheaper, 11 per cent would relocate for a 10 per cent discount, and 14 per cent are already searching for a more affordable area.

Meanwhile, 26 per cent of renters surveyed say they’d consider moving, but only if they could stay close to work, family or amenities.

Another 26 per cent say they either value their current location too much or are already in a stable rental setup, like a long-term lease, according to the Money.com.au research.

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Finance Expert, Sean Callery, said renters are weighing up more than just cost when it came to relocating.

“With the median weekly rent across capital cities sitting at $650, a 20 per cent discount would bring rent down to $520 – a saving of $130 a week or $6760 a year,” he said.

“For those saving for their first home, that could go a long way toward a 5 per cent deposit. Even a 10 per cent cut would still mean $65 back in renters’ pockets each week.”

Sydney renters stand to save the most by relocating for cheaper rent.

With a median rent of $780 per week, a 20 per cent discount would save them $156 per week.

The next-highest potential weekly savings from a 20 per rent reduction are in Perth, Darwin,

and the ACT — where renters could each save up to $140 per week.

Young Aussies lead the rental relocation trend

The survey found that young Australian renters are more willing to relocate for cheaper rent

– especially if the savings are significant.

Millennials were the most likely to consider moving, with 24 per cent saying they’d relocate if rent was at least 20 per cent lower.

They were also the most responsive to smaller savings, with 18 per cent open to moving for a 10 per cent discount – the highest across all generations.

More than a third of Gen Z (35 per cent) and 28 per cent of Millennials said they’d consider relocating for cheaper rent — but only if they could stay close to work, family or amenities.

By contrast, older Australians were more inclined to stay put.

This was most pronounced among Baby Boomers (43 per cent), followed by Gen X (33 per cent), who said they either value their current location too much to chase savings or are already in stable rental arrangements.

The post Scary reason Aus renters won’t move appeared first on realestate.com.au.

With housing costs soaring, many homeowners are looking for creative ways to maximize their property value while providing additional living options. ADUs offer a flexible, cost-effective way to generate rental income, accommodate aging family members, or even provide young adults with an independent living space—all without the need for costly relocations or massive new developments. And, as cities across the U.S. relax zoning laws and streamline permitting for these backyard beauties, the path to establishing a prefab Accessory Dwelling Unit (ADU) has never been clearer.

Modern-day prefab ADUs aren’t simply small homes; Design concepts can demonstrate how creativity, thoughtful layouts and striking aesthetics can transform small spaces into luxurious, livable havens.

Here are insights to consider if a prefab ADU is on your radar.

Do prefab ADUs lose value?

ADUs are considered part of your real estate just like custom ADUs are. So you’re really looking at how much your overall property value will increase with an ADU as opposed to without one.

The generally accepted wisdom is that if you plan on adding an ADU and selling your house within the next several years, you may not recoup the cost of construction. But over the long run, an ADU is likely to give you a great return on investment. A Porch Survey found that in the Pacific region of the U.S., homes with an ADU see an average 35% increase in resale value over homes without an ADU.

An additional living space not only enhances the functionality of your property but also makes it more attractive to potential buyers. When building a garage conversion ADU, some homeowners are worried that losing their garage may deter some buyers. But, studies show that many buyers prioritize additional living space over a traditional garage, especially in urban areas where parking may not be as critical.

The added value of an ADU often outweighs the loss of a garage, making it an appealing feature for future buyers.

Are modular prefab ADUs durable?

Just because prefab ADUs are built in a factory doesn’t mean they’re more susceptible to weather or earthquakes.

It’s just the opposite!

Not only must prefab ADUs meet exactly the same building code standards as stick-built homes, they must also be able to sustain those standards after being transported hundreds of miles to your site. For that reason, prefabs may be built even tougher than state regulations require.

Are prefab ADUs more affordable than custom ADUs?

A big myth about prefab ADUs is that they’re cheaper than stick-built ADUs. That is not usually true. In most cases, prefabs and stick-built ADUs of a similar size and quality cost about the same.

Going on most prefab manufacturer sites, you’ll often see pretty affordable quotes that are lower than what custom stick-build ADUs are going for, but keep in mind that they’re most likely showing you the cost of JUST the unit itself. Remember, you’ll still have to pay for site prep, transportation, installation, and more.

There are a few companies that specialize in low-cost prefabs, and they’re worth checking out if your budget is tight. But keep in mind that if their factories are hundreds of miles from your lot, the cost of transportation may eat into your savings.

Keep in mind:

• Cost of materials fluctuates from year to year, and even over the course of one year.
• The prices above reflect both very high-end and more modest units.

The prices include the installation of the ADU–very important because it’s quite different from the prefab company’s “base price.” The base price may include the unit but not the installation or certain other construction phases.

Prefab companies should give you a current itemized quote that clearly states which costs are included in the base price and which are not.

Ideal lots for a prefab ADU

You don’t need an enormous flat lot in order to install a prefab ADU. But some lots are especially well suited to prefabs:

• Flat or gently sloping land, not a steep hill. Property with a slight slope can be leveled and retaining walls built, but hillside property can be too expensive to prepare or not geologically sound enough to meet building code requirements.
• Wide street. Large trucks and equipment are used to deliver and install prefab ADUs, so your street must be able to accommodate them.
• Straight access streets. The trucks need to get to your house, so there must be fairly straight streets on the route as well as directly in front of your property.
• Large driveway (not required, but it helps). The closer the trucks can get to your backyard, the easier it’s going to be to install the prefab ADU. If there’s plenty of room in your driveway, a modular ADU may be moved into place on rollers. Otherwise it will have to be lowered in on a crane. Panelized prefabs arrive in sections rather than modules, so they are easier to move into place, but a large driveway means less chance of other parts of your property getting dinged during installation.
• Minimal or no power lines in the path of the crane. Power lines are the bane of ADU installation in many urban areas. With either custom or prefab ADUs, you may need a special permit to build within a utility easement. But physically craning the prefab into position may be impossible if power lines on your property are blocking the access. Even if you are willing to risk craning it over the lines, city and county utility companies won’t let you do it.

There are pros and cons to prefab ADUs, to be sure. In the end it depends on your property’s characteristics, your timeframe, and you! What’s really important to you? It’s a lot to think about.

Jon Grishpul is Co-CEO of GreatBuildz. This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: zeb@hwmedia.com.