Monthly Market Update - August 2016
By | 6th Sep 16

August saw another strong month in the Melbourne property market with reserve prices being smashed and suburb records being set. Melbourne was once again voted the most liveable city in the world with many factors taken into account when determining this and the size of our homes is a large factor. Family homes with land component have continued to achieve the strongest results. 18 Campbell Road, Deepdene a five bedroom brick Victorian residence on 1,300sqm sold $1,400,000 over reserve for $6,205,000. An Art Deco building in Hawthorn comprising two 3 bedroom apartments on 662sqm of land sold $1,200,000 over reserve for $3,825,000. 3 Vista Grove, Toorak was purchased for $2,700,000 by a buyer who plans to rebuild paying close to $7,500 per square metre for the land.

We have long been predicting substantial capital growth in the Western Suburbs with the greatest driving force being housing affordability. Many are now finding the Inner North and West suburbs including Reservoir, Preston, Fawkner and Sunshine have experienced significant growth over the past 18 months and are now looking to the outer West fringe suburbs to find a family home within their budget. Areas such as Wyndham are being overwhelmed with applications for subdivisions and weekly there are currently around 80 births within the immediate area. This growth rate is surpassing the investment government is making into these areas. It will be interesting over the next decade to see how the face of this area changes. To read the full article please, CLICK HERE.

Many buyers look to neighbouring suburbs as an option after being priced out of their first preference. This has meant that the once unfashionable neighbouring suburb would achieve significant capital growth and as younger buyers would move into an area, the face of that suburb would change. Many blue chip suburbs are still recording higher growth but it is important to consider what you are purchasing. We have seen over the past few years that the land component is the most important factor affecting the growth of properties. Homes with a land component are out performing those with no land or outdoor space associated with it. While location and access to amenities will always be vitally important, with constant development occurring, we are seeing buyers pay more and more per square metre of land. To read our comments and the full article, please CLICK HERE.