Monthly Property Update- July 2017
By | 7th Jul 17

Melbourne’s property market continues its consistent performance with clearance rates averaging around 75%, so the underquoting laws that came into effect as of the 1st of May definitely have pulled back the market a little bit with buyers still getting adjusted to the new quoting landscape. We are still seeing some big results which shows the market is nowhere near a peak. We saw a house across from commission flats in Wingate Avenue in Ascot Vale sell for $930,000, $130,000 over reserve. There was another property in Orlando Street, Hampton the owners purchased the property for $687,000 four and a half years ago and just sold for $1,250,000. The property was on a tiny parcel of land of only 230 sqm backing right onto a train line so even these C grade located properties are doing well although they will usually pull back once the market starts to flatten out and plateau a bit. We have continued to see some hot results including a house in Armadale that sold for $5,935,000, a whopping $935,000 over the reserve.

 

Our population growth in Melbourne is our biggest driver and it was expected that we would have around 100,000 extra people this year as we have consistently been growing each year for the past decade or so but we ended up having 140,000 new people this year. There is definitely a lot of pressure on houses with backyards due to a lot of demand from upsizing and downsizing families looking for family homes with some sort of land content. The First Home Buyers will be out in force as they are now able to buy up to $750,000 with some stamp duty concessions and full stamp duty concessions up to $600,000. There will definitely be pressure on middle suburbs as house prices continue to rise in areas like Ardeer, Sunshine, Deer Park in the West and Lalor, Thomastown, Reservoir in the North as they buyers been priced out of some of the inner suburbs.

 

If you thought Melbourne prices were expensive have a look at Sydney prices. We are now seeing many Sydney buyers now relocating to Melbourne because the affordability of our housing being 30 or 40% more affordable as well as our lifestyle and reduced cost of living. A Vendor Advocacy client of ours sold a property in McCully Street, Ascot Vale for $990,000 and the Sydney buyers said that a block of land similar to that with no house on it sold in Balmain recently for $1,900,000 just showing the big difference in price points between Sydney and Melbourne. Trek across to Hong Kong where a car park recently sold for $666,000 US dollars and our real estate really does not seem that expensive at all!

 

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 (approximately $250,000 each, with rental return of approximately $225-$235 per week).