Weekly Market Update - 10th July 2017
By | 10th Jul 17

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The Melbourne market continued its solid performance with a clearance rate of 77% from 577 auctions. We are seeing a lower volume of auctions at this time of the year as many vendors are holding off putting their properties on the market due to school holidays where many buyers go away and it does slow down as we get into Winter. More and more property buyers are becoming rent investors. Many of our clients that were looking to buy their first home have decided to buy an investment property instead and continue to rent where they want to live. We have bought many houses recently in Ardeer, Fawkner and Albion for rent investor clients who have continued to live in inner lifestyle suburbs but we have been able to get them a great investment property that will give them solid growth and equity. One in four buyers are looking to get in and buy an investment property first rather than their first home which is very different to when I purchased my first house in East Brunswick in 1995. Most buyers would buy their first home and then use the equity in that home to buy further investment properties in the future. Read our comments in Scott Carbines article here.

There were lots of changes in the regulations to try and curb foreign investor buying, in particular with Chinese buyers dominating the market place, by increasing stamp duty and taxes. It hasn’t really worked as the Chinese buyer’s appetite hasn’t slowed down and in the last year alone, there have been $28,000,000,000 worth of transactions from Chinese buyers in Australia, and in particular Sydney and Melbourne as they love the Australian property market and buying houses with some land value.

It is exciting times on the “The Block” as we have seen the contestants have been revealed for the next season at 46 Regent Street, Elsternwick. This will be the first time they have relocated older style period homes from other parts of Melbourne. They have also confirmed the purchase of The Gatwick Hotel in St Kilda which will be an interesting series next year. We look forward to being a part of our ninth series in a row, hopefully bidding for some clients at the end on the houses which will have triple storey garages with self contained studio’s above them and some land content which will attract more family home buyers, upsizers and downsizers families opposed to the apartments we have seen on offer in other series.

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).