Nine Melbourne homes feeling the hangover effects from the 2008 GFC government stimulus: Paul Osborne

The decade of 2000 to 2010 was a special one. With the exception of 2008, property prices went in one direction – up!

Melbourne clearance rates highlight the occurrence. 

Source: REIV

According to The Economist, Australian house prices are still 36% overvalued.

Melbourne has been Australia’s most dominant city over the past decade. Over the past few years (2011-12), the Melbourne market has started to experience the hangover effects from the 2008 GFC government stimulus that artificially boosted auction clearance rates and helped propel the exuberance.

Sections of the market around the inner-city pockets are still showing resistance to the changing market conditions.

There are numerous examples of those sales that haven’t fared well in the current market. These are the places that have been sold twice within the past five years or have at least attempted to do so.

It's a list of properties that haven't been so lucky:

43 Summerhill Avenue, Glen Iris

Then: May 15, 2010, sold for $1,491,000

Now: Back on market at $1,299,000

217 Rossmoyne Street, Thornbury

Then: May 1, 2010, sold for $920,000

Now: August 18, 2012, passed in at $790,000

Asking price $849,000 

27 Collett Street, Kensington

Then: February 9, 2008, sold for $580,000

Now: July 21, 2012, sold for $547,500

60A May Street, Fitzroy North

Then: October 30, 2010, sold for $1,440,000

Now: June 2, 2012, sold for $1,432,000

8 Bayview Street, Prahran

Then: June 18, 2010, sold for $1,020,000

Now: March 31, 2012, sold for $960,000

15 Collett Street, Kensington

Then: November 6, 2010, sold for $627,000

Now: March 13, 2012, sold for $589,000

10 Quantock Street, Canterbury

Then: September 17, 2010, sold for $2.1 million

Now: October 18, 2011, sold for $1.83 million

319 Richardson Street, Princes Hill

Then: November 14, 2009, sold for $1,045,000

Subsequent: September 18, 2009, sold for $1,033,000

47/1 Queensberry Street, Carlton 

Then: December 21, 2007, sold for $953,000

Subsequent: August 12, 2009, sold for $840,000

462 Canning Street, Carlton North

Then: August 18,2007, sold for $1,175,000

Subsequent:  July 24, 2009, sold for $1,100,000

Paul Osborne is the founder of Melbourne buyers' agency Secret Agent.