8 Murchison Street ST KILDA EAST

Comments on 8 Murchison Street ST KILDA EAST

A property to like in a position that has been improving for several decades.
 
Position
St Kilda East used to be one of the cheapest parts of Inner Melbourne – no more – its eclectic lifestyle and Jewish influences are now sought after for themselves – of course is does help that land is still 50% of values 200 metres away and across the highway. The maths of the gentrification of St Kilda East and surrounding areas gives the area an increased chance of ahead of the norm capital growth. Please note price paid and sold at plus house type also contribute heavily to growth.
 
The immediate area of Murchison gives access to Prahran, High St Armadale, Glenferrie Rd, Chapel St, Fitzroy and Acland Sts – Albert Park lake – all 5 minutes drive away. School choices and two train lines (20 minutes walk to Armadale and Windsor Stations). Tram at the top of the street. All plusses – this is a central location. The cemetery at the end of the road is neither a plus or a minus in my mind.
 
Property - land
To No 8 itself the block – good size for the area although huge rear living makes the garden smaller than expected for the block size. North facing rear is a plus for light and the block is level – for renovation that is a plus – renovation seems unlikely.
 
The elephant in the room or actually just at the back of the room is the block of flats. They are a substantial negative and will turn some future buyers off. Several things have been done to mitigate the negative aspect of the visual bulk – higher and larger rear living rooms and the planting of substantial trees (magnolias) at rear. Those trees need to be kept alive and encouraged to grow at all costs. The winter light will not be as strong due to the lower plane the winter sun runs on. Summer would be above the roof line of the flats and winter close to or below. Its effect on ambient light will not be that noticeable but the direct warmth of sunlight will be compromised for several months of the year.
 
Parking on site is acceptable and carport creation possible – if you look at old photos (council streetscape decision)
 
Property – building
Floor plan works for me – quality is solid according to the building inspector and the feeling is one of space and flow. That’s a good mix. But it is what it is – can’t see too many reno opportunities. Its buy well, maintain and sell well – that’s the formula I see.
 
Price.
So it feels like it has been built well, even though it has seemingly been bought and built to sell.
 
It was bought as land ($1.47m) in 2018. Is the land worth $2m now – well across the road and Westbury sales and market increase say quiet possibly it is.
 
The home – these days who knows what a home is worth with regards to waiting, tradie shortages, timber costs inflation etc. But $750,000 for a completely refurbished home and looking at insurance quote seems also, feels quite reasonable.
 
Builders margin, other buyers is that 10% yes.
 
And again look at sales and you will see ready to move-ins is still attracting solid interest despite a market easing.  The $3.6m sale in the street by these agents was strong, on slightly larger land (but south, but no flats). Until then $2m in the street was a hurdle – (but granted not too many sales)
 
The agent quote – if indeed that is what they want or where it ends up; does not seem unreasonable and therefore is this what you really really want as is; and for some time?