Hampton: Catching Up To Its High-priced Neighbors
The Age
Saturday February 19, 2000
UNTIL recently, Hampton got a pretty bad rap. Many potential buyers regarded the small bayside suburb as a bit downmarket, even a little daggy. ``Hampton is the hyphen between Sandringham and Brighton," says veteran Brighton-based agent Jonathan Dixon.
Then Melburnians discovered Port Phillip Bay.
``Hampton has really kicked in the past few years," says Campbell Cooney, a director with Hodges Real Estate in Sandringham. ``Not so long ago, Hampton was really a poor cousin to Sandringham and Brighton. That was due mainly to the style of housing, which is largely World War I Californian bungalows and the post-war ministry housing.
``It wasn't until the late 1980s that it really started to move."
Wedged between ritzy Brighton and the increasingly blue-chip Sandringham, Hampton is just two kilometres deep and one kilometre wide. Within its boundaries lie three distinct property markets, each of which has enjoyed strong capital growth.
``There are three parts of Hampton in terms of value," says Garry Quinton, a director of Buxton Real Estate. ``There is the beachside of Hampton Street, which is where the most expensive properties are concentrated. Then there is the area east of Hampton Street to May Street, going east. The third, most affordable, section is east of May Street to Bluff Road, which is mostly war-service and former public housing. Within these zones, land prices vary from $40 a square foot in the war-service area right up to $75 a square foot in the more expensive areas. All this within a distance of only two kilometres."
According to the REIV house price survey released this week, Hampton's December quarter median house price was $386,000; a 24 per cent rise over the December 1998 quarter. It is a far cry from 1987, when you could have picked up a modest California bungalow for $180,000.
Unlike its neighbors, Hampton enjoyed only modest gains during the 1980s property boom when the median reached $226,000 before settling at around $220,000 for most of the early and mid-1990s. Prices started escalating steeply in 1996 and have risen at least 10 to 15 per cent per year since.
Full-year 1999 figures are not yet available, but agents report prices have risen between 10 and 15 per cent, depending on the part of Hampton and the nature of the property.
``We keep very detailed records and we estimate (median house) prices went up 14 per cent from around $320,000 to $365,000," Mr Quinton says. Mr Cooney puts the figure at between 10 to 25 per cent, depending on the style of property.
Competition has been particularly fierce in the $400,000 to $600,000 family-home bracket and for the small stock of period homes.
Expect to pay a minimum of $150,000 for a dated unit in east Hampton, rising to $350,000 for a modest townhouse. New townhouses regularly sell for $450,000 and $600,000.
The cheapest properties are former bank and commission homes in east Hampton, near Bluff Road. Expect to pay a minimum of $320,000, up to $400,000 for a renovated, three-bedroom home. Period homes closer to the beach on standard blocks of land range from $450,000 (for homes in original condition) to $600,000 fully renovated.
At the top end, prestige homes in Brighton Beach start at $1 million-plus. Buxton recently set a local record when it sold a huge, architect-designed home in Bolton Avenue for $2.65 million.
Properties in Brighton East are just as valuable as the best sections of Sandringham, says Mr Quinton.
Hampton buyers are predominantly young families, or locals upgrading to a second or third home. Because of the high median price, buyers tend to be double-income professionals, self-employed business people and cashed-up empty nesters.
Hampton offers a variety of state and private schools, including Brighton Grammar, Haileybury College, St Leonard's College, Brighton Secondary College, Hampton Primary and St Mary's Catholic Primary. Transport includes a train link to the CBD, the Nepean Highway and local buses.
The big drawcard is the bay and the very best address is Beach Road.
In 1994, Hodges auctioned a run-down house at 42 Beach Road for $357,000. The property resold in 1996, with a permit for two units, for $660,000. The first of those units sold in 1998 for $915,000 and the second, in 1999, for $1,040,000.
A neighboring property sold late last year for $1.1 million, almost $250,000 above the reserve.
Jonathan Dixon loves Hampton's diversity and the fact that prices can double and treble within a few streets. ``There are parts of Brighton that are all war service homes and others that are up there with Brighton. Bolton Avenue (in bayside Hampton) has the highest concentration of tennis courts anywhere in Melbourne. Then there is the strip of homes between New Street and the Sandringham footy oval, where blocks of land are selling for $1million-plus."
Mr Dixon says that despite Hampton's already high base-entry prices, property values along the bayside strip have a long way to go.
``I think that Hampton, Sandringham, Black Rock and Beaumaris are the next boom areas."
A snapshot of Hampton
531 Hampton Street
This beautifully finished and unusual home-office, built in the 1920s, has been totally overhauled and extended into a sizeable shop and self-contained house. On the ground floor is a large kitchen, living and dining area and a courtyard garden. Upstairs are three bedrooms, the main with a stunning ensuite, a laundry and a spa bathroom. Features include hydronic heating, a roof garden, quality fittings and a double garage. The shop is let for $16,000 a year. For auction on Saturday 4 March at 12.30pm by Hocking Stuart (95219800). Expect $525,000-plus.
77 Linacre Road
Expect tough competition for this classic timber house. Close to the Hampton Street shops, beach and transport, it has generous living spaces and many period features. There are three large bedrooms, the master with ensuite, a fourth bedroom or study, a central bathroom and a large living room. At the rear is a family room, kitchen and meals area. The house has high ceilings, Baltic pine floors and a ducted heating and vacuum system. The large rear garden features an in-ground pool and spa. For auction on Saturday 26 February at 1pm by Hodges (95985589). Expect $400,000-plus.
13 Valeerian Street
This solid brick house was built by the Federal Government after World War II and has been extensively modernised. It has a spacious living room, a separate dining room, three bedrooms, a modern kitchen and meals area. There is a fully renovated central bathroom. At the rear is a large secluded garden with room to extend and a lock-up garage. The house has a new roof, guttering and windows. For auction on Saturday 4 March at 3.30pm by Buxton (95988222).
Expect $290,000-plus.
SALES SINCE FEBRUARY 1999 TOP END 38 Bolton Avenue $2,650,000 42 Beach Road $1,100,000 41A Beach Road $1,040,000 41B Beach Road $915,000 31 Bolton Avenue $880,000 57 Beach Road $830,000 3 Gordon Street $822,500 56 Fewster Road $785,500 1/6 Gordon Street $690,000 29 Mills Street $682,500 MIDDLE GROUND 97 Thomas Street $335,500 31 Bateman Street $337,000 68 Ludstone Street $337,000 11 Bateman Street $340,000 66A David Street $340,000 107 Ludstone Street $343,000 26 Fewster Road $345,000 17 Ivy Street $345,000 124 Thomas Street $345,000 140 Ludstone Street $350,500 Bottom End 7/522 Bluff Road $160,000 6/24 Holyrood Street $161,000 9/8 Alicia Street $165,500 15/237 Thomas Street $177,550 3/38 Holyrood Street $181,000 5/1 Edinburgh Street $184,000 4 Porter Street $206,000 9/72 Holyrood Street $213,000 15/38 Holyrood Street $217,500 3/7 Deakin St North $220,000 Source: The Age Home Price Guide
© 2000 The Age