Weekly Market Update 23rd March 2016
By | 23rd Mar 16

The auction clearance rate remained consistent at 75%, even with 1455 auctions being held throughout Melbourne due to the two long weekends. Some great results were achieved including one of our Vendor Advocacy clients that sold their investment property in Hoddle Street, East Melbourne for $270,000 above reserve. Another outstanding result was achieved at 39 Duke Street, Prahran where six bidders pushed the price $500,000 over reserve. To read about some of the results achieved over the weekend, please CLICK HERE.

One of the keys we note for picking the next ‘hot’ suburbs are infrastructure developments such as freeways. We have recently seen multiple Mornington Peninsula suburbs achieve around 35% capital growth over the past twelve months which is greater than many metropolitan suburbs. A big contributing factor has been the development of the Peninsula Link making accessibility to the CBD and Melbourne suburbs easier and time efficient with some even choosing to downsize their city residence and upsize their holiday home making it their principle place of residence. To read more about this new trend, please CLICK HERE.

The Melbourne city skyline is constantly changing and it is predicted that 22,000 newly constructed properties will come onto the market this year with the majority being inner city residences. There are many factors to consider before purchasing a brand new apartment and many buyers may not be aware that some banks have a minimum size to meet their lending criteria. The other major factor to consider is supply and demand for both rentals and re-sale potential. Many of the large scale developments, where hundreds of apartments are being constructed see minimal capital growth and minimum yield due to an oversupply. We always advise our clients to look at properties which offer a point of difference for the area. One of our ‘Group Blocks’ clients who purchased in our Rosanna block paid $275,000 and received a bank valuation of $482,000 immediately after settlement without any renovations. To read the full article, please CLICK HERE.