Weekly Property Market Update - 27th June 2017
By | 26th Jun 17

Melbourne’s clearance rate has eased to 72% from 802 auctions and as I predicted earlier, the new underquoting laws have definitely slowed the market down and that is good news for buyers. They should be turning up at auctions and taking advantage of some of the new opportunities out there. There are still some runaway results and we saw a massive result in Alleyne Avenue, Armadale where a house there sold for a whopping $935,000 over reserve, selling for $5,925,000 with three bidders showing that the Melbourne market definitely hasn’t peaked with these types of results. We also had a solid result for a Vendor Advocacy client in McCully Street, Ascot Vale and we were able to negotiate the price up from the passed in figure of $860,000 to the sale price of $990,000. Our client had held that property since 2005 when they paid $331,000 and it has more than tripled in value in the last 12 years.

Investors continue to dominate Melbourne’s market place as they were out in force again at many auctions this weekend and they are like a herd of sheep as they jump in the market when everyone else is buying. They constitute about 50% of the current market though many investors make mistakes and don’t buy investment grade property and figures show that only 73% own one property and only 23% own two or more properties. Many people get it wrong with their first property and then do not have enough equity to purchase another property and build their portfolio.

If you thought our Real Estate was expensive, trek across to Hong Kong where a car park recently sold for a whopping $666,000 US dollars, yes that is right - $666,000! That is $188 per square foot, which is a massive result. Speaking of overseas, Australia has matched the Netherlands for having the longest uninterrupted economic growth cycle, we have now gone 26 years or 103 quarters in a row with uninterrupted growth and only the Netherlands and ourselves have continued to have such a buoyant economy.

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 apartment opportunity in Kew in a boutique block of six where we are taking registrations of interest for approximately $590,000 each for large 9-10 square two bedroom apartments.