Weekly Market Update - 24th April 2018
By | 24th Apr 18

Your weekly property update by Frank Valentic

WATCH: Buying Tips: Considerations when buying investment grade property

Melbourne’s market is definitely presenting more opportunities for buyers as last year the clearance rates were averaging around 78% and now for the last month, the clearance rates have been averaging around the 68% mark with this weekend seeing a clearance rate of 68% from 691 auctions. The REIV released their March quarter price figures and it showed that Melbourne’s median house price is at its highest point ever reaching $855,000 and the median unit price also is at an all time high of $607,000. Melbourne’s middle suburbs now have a median price of over $1,000,000 within 20 km’s of Melbourne’s CBD and it shows how Melbourne’s buyers have spread outwards and the ripple effect has pushed them out to the middle suburbs and made them much more expensive.

In the last year alone, Melbourne’s house prices have increased by 10.9% and it is slowing a little bit as it was 13.2% for the year from December to December. We are definitely seeing a shift to more demand in those middle to outer suburbs and this was seen in the last year when Reservoir topped the auction market with 679 auctions and the second highest auction suburb was Craigieburn which held 595 auctions. In the past, auctions were the domain of the inner blue chip suburbs but with Reservoir being 12 kilometres out and Craigieburn being 27 kilometres out, middle suburbs are now ruling the auction roost!

It is interesting seeing at auctions every weekend how buyers push themselves above their budgets and above their limits and how they can get emotional and over pay for properties. We see regularly but it is really important to stick to your budget because if your finance is approved to a certain level and you bid above that, then you are taking a massive risk. A recent survey showed that 22% of buyers were going over their budget and this could have enormous ramifications if they didn’t have the funds to ‘top up’ and complete their purchase.

 We are all excited about our upcoming Investor Club night which will again feature a panel but we will be discussing all things Property as it will be a Property Forum and will include Andrew Crotty from Biggin & Scott in Richmond and Adrian Foster from Hocking Stuart in Frankston. It will also feature our Owners Corporation Manager Ronald Perera and Team Leader/Property Manager Laura Braun discussing all things property, including ‘Hot Spots’, Owners Corporations, leasing and lots of tips and strategies to be ready to invest in 2018 and beyond. Please click here to book your ticket now via our website. You can also see some videos from our past Investor Club events, in case you have never been before.

Please don't hesitate to check out our website for more information about our popular Buyer's Advocate, Sellers Advocate, Owner's Corporation and Property Management services and our latest newsletters as well as our future Group Block opportunities including our block of two bedroom art deco apartments (without parking) in Duke Street, St Kilda which we have now negotiated the purchase of from $483,000-$541,000 each, our Reservoir two bedroom villa units with courtyard and undercover parking approximately $450,000 each (open for inspection Saturday 28th April 9:00am-9:30am) and a Kew East boutique block of 6 two bedroom apartments with parking for approximately $625,000 each. Please register your interest by contacting mfairbank@advantageproperty.com.au