Monthly Property Update - December 2016
By | 6th Dec 16

December Monthly Market Update

Melbourne’s property market showed no signs of prices having peaked and being on the way down in the month of November. Records continued to be smashed in Sunshine and Sunshine North with more million dollar plus sales. A number of properties sold for a whopping $800,000 over the reserve prices in Richmond and East Melbourne showing that we are not even close to a market slow down.

Melbourne now has 104 suburbs with median house prices over a million dollars with new entrants including Chadstone, Brunswick and Mordialloc. The ripple effect keeps pushing buyers out to the middle suburbs and this supported the big increase from 90 suburbs in the last quarter. Though, Melbourne’s median house price of $740,000 is still cheap as chips compared to Sydney where the median price is around one million dollars or around 26% more expensive than Melbourne on average. Our market is currently dominated by an influx of investors that always jump on the bandwagon when the market is buoyant and follow the herd, this includes many Sydney investors who see Melbourne as a much better and affordable investment area.

The strong results of The Block auctions again are supportive of the strength of the Melbourne market with the contestants earning around three million dollars in prize money over their reserves. We were excited to buy the girl’s apartment for a repeat investor as most buyers rated their property as the best, buying our sixth property from the 29 properties we have bid for on The Block.