Weekly Property Market Update
By Advantage Property | 1st Oct 18
October 2, 2018
The Melbourne market took a breather for the school holidays and the AFL grand final. I had a disappointing weekend watching my team the Pies and my other team Melbourne Storm lose their grand finals. The Melbourne market was hit with a sensationalist story on 60 minutes claiming that property prices will drop by 40% in the next twelve months. Melbourne has never seen this decline before in history so we think these types of stories are just there to sell news. We don’t think there is any chance that Melbourne will correct itself more than around 5 to 10% in most suburbs in the next 12 months.
Though we have had seen a definite change in the Melbourne market places as we have seen some areas price’s flatten and level. We saw this with a townhouse in High Street Malvern which sold earlier this year in March for $1,295,000 and a property in the same block recently was passed in with a reserve of $1.1million. This shows that there are much better buying opportunities now but we are nowhere near having the 60 minutes call of 40 to 45% correction in the market place.
Buying in bulk can be a great way to achieve faster results and also when you are buying off market opportunities without any auction competition. We saw this with a couple of our Group Block purchases in Ida Street, Fitzroy North where two units recently sold for $595,000 and $600,000. Both were bought two years ago for $393,000 and have had minor internal renovations. Buying wholesale is an important strategy as you make money when you buy well and not when you sell.