Weekly Property Market update - August 28, 2018
By | 27th Aug 18

Weekly Property Market update - August 28, 2018

The Melbourne market rebounded from the previous weeks low 57% clearance rate to jump up to 60% clearance rate from 640 auctions. There were some strong results and there are definitely different patchy results in the market at the moment as it is very unpredictable. Who would have predicted that a two bedroom unrenovated villa unit in Balwyn North would sell so strongly. Single level villa units are in strong demand with downsizers and three downsizers bid aggressively for this unrenovated unit which was sold for $1,120,000. A whopping $375,000 or 50% over the reserve. 

Developers should continue to provide more single level units as there is such a need from our older population as well as young families. They love to have single level living and have an opportunity to be able to have a bit of land attached to their property.  As always, land is king in the property game and this property had a good parcel of land and was one of only two units on the whole block.   Properties with a “wow” factor such as this are still performing very strongly in the Melbourne market and outperforming average properties.

It has been an interesting week in politics with a change in our leadership and now talk about the impact this potential change in political parties may have if there was an election called later this year or next year.  One of the biggest challenges will be how both parties with handle negative gearing because the Labour government has stated that they will abolish negative gearing. This had a very negative effect on the property market in the late 80s and it was quickly reintroduced. So we will see if this change will take place as investors already struggling to get finance and get into the market at the moment.