Advantage Monthly Property Update: January 2017
By | 11th Jan 17

Advantage Monthly Property Update: January 2017

Happy New Year and welcome back to our first Advantage Property Market Update for 2017. Hope you had an opportunity to enjoy the Festive Season with family and friends and reflect on how successful you were at achieving your goals in 2016. If building your property portfolio was one of your goals and you didn’t achieve this, I hope you can make this become a reality this year and help build wealth for you and your family in 2017 and beyond.

The Melbourne housing market finished as strong as ever with clearance rates around 75-80% which was a significant improvement from the average clearance rates of around 70% at the beginning of the year. Many commentators incorrectly predicted that Melbourne’s market would peak during 2016 and then correct itself with some downward pressure on housing prices.

This simply didn’t happen as Melbourne’s housing market saw average capital growth of 17% for houses, just below Sydney’s 19% gains for the year. If you invested your money in shares or superannuation funds, you would have achieved an average return of only 7% which was 246% less growth than Melbourne’s property growth. We expect the strong market conditions in Melbourne’s housing market to continue at a more moderate level than last year.