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Melbourne’s most popular suburbs for house flippers: Ray White

Melbourne’s most popular suburbs for house flippers: Ray White

Sydenham, Montmorency and Carrum are Melbourne’s most popular suburbs for house flippers, new research shows.

But the time for big money gains by buying and selling quickly could be over, with the window of opportunity to buy cheap and sell again soon afterwards for a substantial profit almost closed.

Ray White chief economist Nerida Conisbee said house flippers — people who buy and sell again quickly — reaped massive cash rewards in the past year.

The vendors paid $550,000 for the property in 2015. Pictured here is the original facade.

What the study used to look like.

What it looks like now.

This was due to huge post-lockdown capital gains that caused Melbourne’s median house and unit value to shoot up 13.4 per cent in the year to August, according to CoreLogic’s Hedonic Home Value Index.

In Sydenham, where the median house price is $649,000, about 21.7 per cent of houses bought were sold again in a year.

The lounge room as it once was.

Now it’s almost unrecognisable.

Montmorency, which has a median of $948,500, had 21.5 per cent of houses bought and sold, while Carrum, where the median is $950,000, about 18.6 per cent of homes transacted at least twice in the period, according to a Ray White analysis.

Melbourne’s outer suburbs offered some of the best opportunities for flippers, Ms Conisbee said.

The meals zone went from drab.

To fab.

This was because they tended to have lower prices but also recorded some of the biggest value gains over the past 18 months.

But unlike the national list of top flipper suburbs, she said many of Melbourne’s flipper hot spots already had high median prices to start with.

“It does tend to be something people do at lower price points so they don’t have to pay much stamp duty,” Ms Conisbee said.

The original dated bathroom.

Now it’s much more modern.

“But I think the best time would have been in the past 12 months. In the next 12 months the opportunities are going to be limited. The reason being that we’re probably going to have regulators step in soon to restrict lending.

“It’s also unlikely we’ll see the same price growth over the next 12 months that we’ve seen over the past 12 months.”

House flipper

House flipper Karrina Barker pictured with her pups Leo, Archie and Alfie outside her recently listed property. Picture: Mark Stewart

House flipper Karrina Barker bought her Cheltenham home with her partner in 2015 for $550,000.

They originally intended to live in it for the long term, but she said they recently decided to sell after completing an extensive renovation.

She estimated they spent about $50,000 on renovations, including updating the kitchen and bathroom and building a deck at 1C Oak Ave.

It is now on the market for $860,000-$940,000, representing a potential value gain of at least $310,000.

“It’s different in pretty much every way to when we bought it,” Ms Barker said.

“We’re quite sad to be leaving a house like this but we just need a little bit more room for our four dogs.”

Top 10 flipper suburbs (Melbourne):

(% of houses bought and sold within 12 months)

% flipped Median

Sydenham 21.7% $649,000

Montmorency 21.5% $948,500

Carrum 18.6% $950,000

Briar Hill 15.4% $942,500

Bayswater 15.4% $812,750

Brooklyn 15.4% $843,000

Spotswood 14.3% $1.033m

Glen Huntly 14.3% $1.55m

Ashwood 13.8% $1.365m

Kingsbury 13.6% $809,000

Top 10 flipper suburbs (Australia):

(% of houses bought and sold within 12 months)

State % flipped Median

Kilkenny SA 36.8% $545,000

McLaren Vale SA 36.4% $507,500

Marden SA 32% $735,000

Burswood WA 29.2% $965,000

Point Lookout QLD 25.6% $925,000

Highgate SA 25% $1.087m

Payneham South SA 25% $897,500

Camden Park SA 24.1% $608,000

Norwood SA 23.3% $995,000

Evanston SA 22.7% $307,500

Source: Ray White


Originally published as: Melbourne’s most popular suburbs for house flippers: Ray WhiteThe surprising stat that proves Australians are much richer than they think – and the postcodes where house prices are surging by $900,000 a yearThe most popular suburbs for property transactions over the past year revealedHow much does it cost to buy a house in Melbourne’s most popular school zones?


Only Capital

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