In terms of property valuation in Essendon, its worthwhile keeping in mind a couple of points that can attract or detract from a valuation.
When it comes to property valuation in Essendon, it’s important to understand what creates monetary value – Desire, Utility, Scarcity, and Purchasing Power. These are called the ‘Factors of Value’, and represent the fundamentals of supply & demand.
Value for a product is not inherent by the product itself, but rather determined by consumers individually, and the state of a property market will be decided by people’s behaviour toward these four Factors of Value.
The following provides an overview regarding some of the characteristics of Essendon and why they’re important to the above Factors of Value. When combined together, the Factors of Value determine the price someones prepared to pay.
Over 94% of Essendon, including Essendon West and Essendon North, is zoned General Residential Zone which tells us three things:
- It’s largely residents who live but don’t work in the suburb.
- A limited amount of commerce operates in the suburb.
- Majority of Essendon’s land is encouraged to be developed in a way that respects the neighbourhood, and is primed for growth.
The image below illustrates Essendon’s perimeter and the vast amount of land that is zoned General Residential.
Something worth noting, is how much land is attributed to a heritage overlay. The darker colour in the below image shows the land mass dedicated to a heritage overlay.
Zoning and Overlays refer to use. Use or rather utility, is one of the four Factors of Value mentioned above. A buyer needs to be able to see the current and future benefits of the use or uses. Where too many restrictions are inforced on the land, the degree of desire waivers.
An advantage for owners when it comes to property valuation in Essendon is heterogeneous housing e.g. different types of architecture. Valuers want to measure other properties in close proximity that share common features. The more unique, but still appealing, the more desirable and potentially valuable the property will be.
Architecture types in Essendon
When Essendon’s housing was being constructed, it was toward the end of the Victorian period. These mid to late era Victorian houses had more elaborate ornate features such as fretwork. Some of the more prestiage homes include italianate architecture with belvedere towers. Essendon also hosts Victorian Terrace houses.
There are many Federation houses (Edwardian era) which took on some of the appeal and layout of the Victorian era and used both weatherboard and red brick cladding. The picture below is a common type of property in Essendon.
Source Heritage Council
Californian Bungalows are also very common in Essendon and always on large plots of land. This housing type usually has no heritage overlay and are in high demand for development.
In a pocket of Essendon you can find some Art Deco homes on large blocks. Art Deco has a high level of scarcity simply due to the limited number. The following picture is an Art Deco residential house.
Post World War 2 brick veneer houses are also common in Essendon particularly toward West Essendon and North Essendon.
A premier property in Essendon is Earlsbrae Hall, now called Lowther Hall, see below, and these days is used as a grammar school.
Lowther Hall (Google Street View)
As described above, Essendon hosts many different architectural designs with many having various horizontal and/or vertical extensions and renovations. The heterogeneous nature of Essendon has a large element of Scarcity. Scarcity is one of the Four Factors of Value. The level of scarcity influences our desire for the use or uses, and influences our willingness to pay.
Essendon Junction will see significant development as the MV Council delivers on its Structure Plan. The plan, just like all Activity Centres, aims to enhance a mixed use lifestyle of retail shops and accommodation in an area accessible by public transport (Essendon Station) to limit cars. The Activity Centre is divided by the train line and in terms of land mass, stretches from Brewster Street to Buckley Street. There is substantial opportunity for the junction, but still requires much work and is already missing key trade and other household ingredients that make up an Activity Centre. For more information please read the ‘Essendon Junction Structure Plan 2015-2035’ by MV Council.
Compared with many locations around Melbourne, Essendon is relatively flat. The lowest point in Essendon is the eastern boundary which is the Moonee Ponds Creek, where it drops to 15m above sea level. The topography slowly increases to 70m in the north west pocket of Essendon North prior to the Tullamarine Freeway, and even reaches 85m above sea level at Essendon Fields. Essendon has a sinking point along Buckley Street, however ultimately the contour lines are spread indicating a rather flat topography.
Moonee Valley Population
According to id profile, the municipality’s population is projected to increase to around 177,000 by 2041, which is about 19,000 people per year. Much of this growth will be centred in and around Activity Centres such Moonee Ponds and Airport West, however Essendon has some smaller Activity Centres in North Essendon and along Keilor Road that will continue to house denser population.
The growth corridor of Melbourne’s outer north west is currently seeing rapid population growth and will only continue. Satellite cities such as Sunbury are destined to reach over 80,000 people in 11 years’ time. More people will commute to employment nodes, and Airport West, Moonee Ponds, and Essendon can take advantage of this growth by creating further commerce in the limited commercial and mixed use zoning. Starting a business in Melbourne’s north west has plenty of opportunity.
According the realestate com au, in 2011 the median house price was $880,000 and now in 2020 sits at $1,410,000. Whereas, unit prices for the same timeline are $445,000 and $520,000. Essendon West tells a different story. In 2011 the median house price was $1,220,000 and in 2020 is $1,200,000, however Essendon West sees less sales per month and therefore less data.
Property valuation in Essendon can throw some complexities predominantly due the heterogeneous nature of architecture and various improvements via extension and/or renovation. Some properties have even combined old and new, while others have recently designed and built classical revival homes. It’s therefore important to keep abreast of what’s happening around the four Factors of Value mentioned earlier in this post, and how people are displaying their emotions toward these.
For further information regarding a property valuation in the north west of Melbourne please get a no obligation quote here.
What are the demand and supply factors that create monetary value? A product or service must have utility, desire, scarcity, and effective purchasing power to have a monetary...
In part 1 we learned what scarcity is and its relationship with utility. We also learned why scarcity has an influence on both land and the improvements e.g. a house.