Property Market Update 3rd & 4th Oct
By | 6th Oct 15

Melbourne Property Market Update

Welcome to our weekly Melbourne Property Market update.  Although Melbourne was out in force celebrating the great weather and Grand Final, it was quiet on the Real Estate front. Only 39 auctions reported to the REIV and 24 selling, 15 being passed in and 9 of those where on a vendor bid. The top three auction sales suburbs in the month of September were Reservoir (55 sales), South Yarra (46 sales) and Richmond (42 sales).  The week prior had 965 auctions and a clearance rate of 74 per cent, which was the same as the previous weekend. 710 of those properties sold and 255 were passed in, 110 of those on a vendor bid. (Source REIV)

I am often asked about  investing in regional areas versus investing in capital cities and I recommend clients invest in capital cities as 80% of our population live there. Here are some of my comments in this Herald Sun article where I can recommend capital cities versus regional areas because of stronger capital growth. Whilst regional areas can provide strong rental returns, they lack the capital growth that can be achieved in capital cities. To read this full article, click here.

Melbourne will continue to grow our population with the strongest growth across the whole nation and there was talk recently about whether we should continue expanding our urban boundaries. 50 new suburbs have been created in the past ten years and debate is whether we should continue the urban sprawl or do more medium density developments as we grow our population towards 8 million by 2051 to be the largest capital city. This debate will be interesting and obviously have a huge impact on property prices in Melbourne.

Listen to my latest property market update that includes information on the current clearance rate that has been in the high 70s, the increase of stock for the spring market, the rental vacancy rate of 2.9% except for the inner city properties that are around the 3.6% level. I also discuss record auction results in Elwood and Glen Waverley and an interesting note about investors slowing down in the market place.

The Reserve Bank of Australia meet today and have announced to keep the official cash rate unchanged at 2.0 per cent. This decision means that we have had record low interest rates for five consecutive months and was predicted my most property and economic experts. Some also predict a further rate cut next month based on concerns with the global economy. To read my full report on this, please click here.

Our Group Block purchases keep getting great results for our clients and we are excited about the purchase of a block of units in the beach side suburb of Edithvale. Visit our website at www.advantageproperty.com.au for our current and future opportunities in our Group Buying Strategy, our popular Buyer's Advocate, Seller's Advocate, Property Management and Owner's Corporation services.