Weekly Property Market Update - May 21, 2018
By Advantage Property | 21st May 18
Your weekly market update by the Advantage Team
Melbourne had another consistent 63% clearance rate from 795 auctions last weekend though we are still seeing some runaway record results. We saw a house in Glen Iris smashing the previous record sell in the area, selling for $9,000,000 to set about the 30th Melbourne suburb record that we have seen in the last twelve months. There continues to still be plenty of money getting splashed around in many of the middle suburbs in Melbourne.
In good news for owners of apartments, there has definitely been a pick up in the apartment sector in the last twelve months. We saw this with a two-bedroom apartment that we sold through our Vendor Advocacy service in Wright Street, Clayton. It sold for $428,000, however only one year ago in the same block they were selling for $320,000. There were fourteen offers from First Home Buyers fighting for the keys, which is great news for Vendors.
We are often asked about whether serviced apartments are a good investment or not and our response is that we really don't like buying properties that do not attract owner occupiers when being resold. There was a recent article where unfortunately an owner had purchased a Quest serviced apartment for a retirement asset. After many years he had basically no capital growth and continued to have high maintenance costs that he was obliged to pay. Unfortunately, the contract he signed locks him in to an investment that will not provide him with any security for his future.
l will be speaking on Friday 1st June at the Port Phillip Business Networking breakfast to provide my advice and expertise on building a multi million dollar property portfolio. Come and join us for some breakfast and networking. Tickets can be purchased by clicking here.
Watch: Property Buying Tips presented by Tracy Orr - Estate Planning Preparation