Monthly Property Update - June 2018
By Advantage Property | 19th Jun 18
Your monthly Property update by award winning Buyers Agent Frank Valentic.
Monthly Market Update - June 2018
The clearance rates have stayed around the low 60% mark for the month as the market has definitely transitioned into a buyers' market. Though we are still seeing some run away record results with another record smashed in Glen Iris as a house in Fairview Avenue sold for a record $9 million. Another house in Leslie Road, Essendon beat the suburb record and sold for $8 million. There was also another runaway result in Glen Huntly Road, Elsternwick where a commercial property sold for $9.2 million dollars, $1.5 million over reserve.
So are we seeing some of these strong results in Melbourne's middle to outer suburbs? They are performing stronger now as they tend to lag behind the inner suburbs and achieve growth later and after the inner suburbs have peaked. We have seen middle suburbs like Ardeer, which has topped the nation for growth in the last year with a strong 33% increase. We have been buying in Ardeer for the last couple of years as it was one of our "Hot Spot" areas, it has been great to see our clients reap the rewards of these investments.
There has also been some growth in the apartment market and we have seen stronger numbers at open for inspections and bidding at auctions. Showing how much the apartment market has improved, our Vendor Advocacy clients sold in Wright Street Clayton for $428,000 whereas a year ago, one sold in the block for $320,000 with hardly any interest. This time we had fourteen offers, all from first home buyers given a boost by the stamp duty concessions. We are seeing first home buyers in a stronger buying position than ever and often beating out investors at auction because of these incentives. Townhouses have also been popular with buyers because they can often get into their desired location for a far more affordable price point and still have some land component, in particular we see single level townhouses achieving great results as they ideal for downsizers and have a low supply.
We are often asked whether serviced apartments and other investment strategies, such as studio accommodation and defence housing, are a good investment. We find that these properties have very little capital growth and very hard to resell and often the clients are stuck with a property that they don’t get growth with and find it very hard to re-sell into future.
Articles you must read:
First home buyers need more advice than ever now as the market has definitely hotted up at the entry level. End of the market, first home buyer numbers now have increased 18% of the total market, well up on the last year before the first home owner subsidy. Read our article about advice to first home buyers which was featured in the Australian Property Investor Magazine.
We see many buyers get carried away at an auction and over pay. One little tip at an auction is to always to end on uneven number e.g. $751,701 not $700,000 or $750,000.00, as most other buyers will end on a round number, it could be the difference between purchasing the property. Read this article about great tips about bidding at auction.
In recent changes to previous stations running property investment it has now changed so that you can’t transfer an investment property to your spouse, whereas before you could.
It is definitely a better time to buy at the $1 to $2 million dollar end of the market, it’s a much tougher time at bid in the entry level market; read our comments in Scott Carbines article.
We love helping our clients get great results. It’s always exciting to see a happy client we’ve assisted on any occasions of purchasing a property and we are delighted to have helped in securing their property through our property services.
Life can be cruel, it really is important to remind ourselves to stop and smell the roses and to live life to the fullest. We were saddened recently at the passing of our long time client, Mark who at age 59 passed away from cancer. Mark had been a long time client and friend, we had assisted him in building a property portfolio which enabled his retirement and for he and his wife Ola to travel around Australia together. We are also sending our thoughts to our long time employee and friend Bronwyn who lost her sister over the weekend also to Cancer. Loss is always reminder to stop and evaluate what we value in life as we all know life can certainly throw some big curve balls. Our thoughts and prayers are with both your families and loved ones.