Footscray’s fabulous growth rate…

Yesterday we found ourselves bidding on four properties for clients; two of which were in Footscray.

Both properties had an interesting story and we did wonder what the effects of their respective histories would be on auction day.

Nineteen Essex St was one of the most impressive and inspiring one bedroom shopfront restorations I’ve seen. The 1930’s shopfront had housed not just a general store, but an iconic fish and chip shop through the 1980’s and 90’s. With a clever second story addition offering a split level bedroom and kitchen/second lounge, what sounded tiny on paper was expansive inside.

‘Rosedale,’ a cute 1990’s built, Victorian-inspired renovation stole more than just a few hearts during the campaign and the $736,000 was not a huge shock to me when I factored in the prices which single-fronted Victorian houses are selling for in the area. However the interesting history to this 26 year old semi-detached townhouse on 150sqm was its incredibly fast growth trajectory and cosmetic transformation. Purchased just fifteen months ago for $490,000, the vendor’s clever transformation and adaptation from townhouse to single-front had maximum effect. Combined with Footcray’s impressive growth (reflected also in the more recent sale of the un-renovated neighbouring property at $590,000), the vendors had much to celebrate last night.

Rosedale – before

Rosedale – after

Each property demonstrated an incredible capital value jump and it’s fair to say that the quality of renovation and presentation of each property played a strong part, but the capital growth of Footscray as an evolving, hot inner-ring suburb with character is the key ingredient to their recorded growth. Emerging wine bars, quirky cafes, impressive restaurants and edgy entrepreneurs are all taking Footscray by storm, and our once-stigmatised suburb is now attracting foodies and home-buyers in droves.

Despite our disappointment at missing out yesterday to these two strong results, our two other couples who were fortunate enough to purchase these two off-market single-fronted Victorians in White Street and Latrobe St for $740,000 and $775,000 respectively could breathe a sigh of relief that they didn’t have to fight it out under tough auction conditions in what has become a hugely competitive segment of the market.

In contrast, the trio of Victorian brick terraces on the very edge of the Middle Footscray overpass were re-sold in quick succession at a public auction yesterday. The sale was of particular significance, these Mixed Use zoned properties were initially compulsorily acquired by the State Government back in 2011 for the widening of the station, but after the project had been finalized with some alterations to the plans, the properties were deemed to be privatized again. Despite the government’s ‘hurt money’ offered to previous owners in 2011 , ($520,000, $500,000 and $500,000), the sales results resulted in the government crystallising only a tiny gain in the face of a suburb which has out-performed almost all others over a sharp five year period. The comparatively modest sales recorded yesterday for these three adjoining properties of $605,000, $602,000 and $601,000 reflected not only the compromised location, but the challenging zoning (and the implication it presents to first home buyers who are most likely unable to secure lending for such titles.)

Yesterday’s results were not an aberration at all, but a sign of things to come for Fabulous Footscray. Just three stops to the city and a mere four kms from the CBD, the current growth, future master plan and exciting gentrification continues to keep Footscray at the top of the hotlists for Victorian suburbs to watch.