Weekly Property Market - May 13th, 2019
By Advantage Property | 13th May 19
How to make money in the current market
The Melbourne market continues to see improved clearance rates. The auction clearance rate was 60% from 383 auctions this weekend. There was a standout result with a 4 bedroom house in Burgess Street, Bentleigh selling for $1,170,000, $170,000 over reserve with 4 bidders bidding strongly. Family homes like this property are sought after by upsizing couples wanting to take advantage of the current market and they can make hundreds of thousands of dollars in the buying changeover.
It is interesting to hear that Purple Bricks has closed operations in Australia offering a budget priced real estate service. It shows that it’s not always the cheapest service that will be the best and most sought after. Vendors are happy to pay for value for money services, and this is supported with the collapse of Purple Bricks.
The rental market is segmented and there are certain part of the market that are stronger than others. Some of our rental properties are seeing 40 – 50 people come to inspections. The average Melbourne unit rent went up 2.4% while house rents remained fairly similar. It is important to understand if you are a tenant, the rental market in your area as some segments are performing stronger with multiple applications versus others where there is little interest in rental properties.
House sales have dropped to their lowest levels since Paul Keating was Prime Minister, property values across the country are now putting the Reserve Bank under pressure to cut interest rates. The number of home sales has now fallen by around 20% over the past year to its lowest level since 1996.