Monthly Market Update: May 2017
By | 3rd May 17

The Melbourne market continues to perform solidly and clearance rates have averaged 75% for the past six months and in the last couple of months, we have seen clearance rates around 80% on most weekends including many super Saturdays. Melbourne’s prices are at an all time peak and the big question many people are asking is “Are prices at a peak and just about to burst?”. The Melbourne market is four and a half years into this cycle as it bottomed in September 2012 and many of the inner suburb's house prices are high and at peak levels and do not have as much potential to increase further, however there is still some room to move in some of Melbourne’s middle to outer suburbs. The ripple effect usually happens later on so that these areas should still get some growth over the next one to two years.

Though, it is a segmented market because the apartment and unit market is not performing anywhere near the level of the house market. This can be seen by Melbourne’s median house prices over the past five years which have increased on average by 50% or 10% a year whereas the median Melbourne unit prices have only increased by about 25% or around 5% a year. This is consistent with most suburbs across Melbourne where we definitely have a two speed market operating.

Melbourne’s March median house price is now $826,000 and is at an all time high, up from $770,000 in the last quarter with a 7.6% increase across Melbourne over the last quarter and is the highest increase for many years. Melbourne now has 115 suburbs with median house prices over a million. Many new middle suburbs entered the million dollar club in recent times and Melbourne also has 14 suburbs now that have median house prices over two million dollars.

Our prices are however still much more affordable than Sydney where the Sydney median house price is over $1,151,000 and 78 suburbs have median house prices over $2,000,000. Our population growth in Melbourne is really driving our market with over 100,000 people coming here every year and making Melbourne home. We have the fastest growing population in Australia. Recent studies have shown that Melbourne has five of the ten quickest growing suburbs with South Morang topping the list.  

Please don’t hesitate to visit our website www.advantageproperty.com.au or contact us regarding our popular Buyer’s Advocate, Vendor Advocacy, Property Management, Owner’s Corporation services and Group Block Purchases, including our future opportunities in Hampton East (approximately $420,000) and Kingsville (approximately $420,000). Also, don't forget about our Investor's Club meeting next Thursday May 11th. Click here to RSVP as spaces are limited.