Weekly Market Update 12th September 2017
By Advantage Property | 12th Sep 17
Your weekly insight for everything property related
The Melbourne market had a clearance rate of 73% from 773 auctions, showing Melbourne’s Spring market has started with a bit of a bang. We expect some more increases in the volume of properties on the market in the next month or so. The biggest result we saw was a house in Clifton Street, Richmond which sold for $3,010,000 and the house needed a major renovation and sold for close to a new suburb record of $8,300 per sqm of land.
In good news for investors, the Melbourne vacancy rate continues to improve and it has dropped from 2.6% a year ago, to the lowest level it has been for many years, with a current rental vacancy rate of only 2.1%. That means we have seen a 19% improvement in the last twelve months and across our rental property portfolio, we have noticed there has been more demand from tenants and strong leasing on most of our properties.
I was involved in an article which talked about First Home Buyers and how difficult it is for them to get into the market and how the bank of Mum and Dad is now the fifth largest bank in Australia. First Home Buyers really need assistance to get into the current market as about 33% are getting some assistance from their parents. I think this is so important as I know personally as I lived at home until I was 25 without being charged rental or board. This enabled me to save a very substantial deposit for my first home. Giving kids the option of staying at home, gifting/lending a deposit or being guarantor for the loan will help some get into a market which is moving so much faster than they can save. To read the article, click here.
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