Weekly Market Update - 7th June 2017
By | 7th Jun 17

The Melbourne market continues its consistent performance with a 77% clearance rate from 884 auctions. The new underquoting laws that came into effect from the 1st of May have definitely levelled the playing field a bit more as there are some more opportunities for buyers now as more agents are quoting more accurately with more transparency. We are therefore seeing a lot more properties that are selling closer to the advertised price ranges. 

There was some recent data from Core Logic that showed that for the second month in a row, Melbourne’s median prices have dropped. This should be seen as one of many factors as none of the other economic indicators show that the Melbourne property market is in a downturn as employment is solid, inflation is still low and most importantly the RBA is not likely to increase the cash rate in the near future. I think this will impact the market once the cash rate starts to increase and investors start to drop off from the market place. Read our comments in Samantha Landy’s article here.

Most investors unfortunately only buy one property as 73% of Australia’s investors own only one property. They often don’t get it right with their property selection and therefore they never get on to property number two or three and onwards. Only 28% of investors own two of more properties in Australia and I believe this is due to many not buying the right property, where they can create good equity and then use that equity to fund further investment purchases.

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 townhouse opportunity in Dandenong (approximately $300,000 and potential return of around $320 per week with a small renovation).