Monthly Property Update- August 2017
By | 2nd Aug 17

Melbourne’s property market continues its solid performance with clearance rates for the month of July averaging 75% to 78% and we are still seeing some record prices. We recently saw a property in Werribee sell for land value of $1,400 per sqm, well up from the average of $1,100 per sqm in the suburb. This was due to the new zoning as the property had been re-zoned to allow for multi-level developments and the vendors in these areas must feel like they have won Tattslotto as their properties value has increased over night by 20% to 30%. See our comments about re-zoning in Samantha Landy’s article here.


We are still seeing some run away prices as we saw in Princes Street, Port Melbourne where a property sold for over 50% or $935,000 over the reserve. Melbourne now has the highest capital growth in the nation with 16% growth in the last year compared to Sydney’s 12% so we are now growing 25% faster than Sydney. This is not surprising with our population growth being the highest in the nation with 146,000 new people this year and being voted the world’s most liveable city on six occasions in a row and also with all of our schools, culture, lifestyle, restaurants and being one of the sporting capitals of the world. Read our comments in Jordan Marshall's article here. 


The June Quarter REIV median house price figures show that Melbourne’s house prices and unit prices are at an all time high and are continuing to increase. The median house price is now $846,000 and the median unit price is now $596,000. Extra stamp duty concessions came in on July 1st, the real winners of the stamp duty concessions are vendors with properties valued under $750,000 as First Home Buyer numbers have increased dramatically and they are now out in force at many auctions in Melbourne. First Home Buyer numbers are expected to increase up to around 25,000 this year and all this is doing is fuelling the fire as house growth in many Melbourne middle western and northern suburbs has already increased by 25% to 30% in the last twelve months and we have also seen that growth in areas such as Frankston and surrounding suburbs. 

Interest rates are continuing to stay on hold by the RBA and due to the Australian dollar increasing over eighty cents, most experts predict that the RBA will not tamper with rates. It is really the banks that are raising the interest rates independently, so they are the ones that are dictating the interest rate market. 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 villa unit opportunity at 159 O'Shanassy Street, Sunbury (from $238,000 each, with rental return of approximately $225-$235 per week or 5% return).