Weekly Property Market Update - May 30, 2018
By Advantage Property | 30th May 18
Your weekly property insights from Frank Valentic
Melbourne is offering more opportunities for buyers with a 60% clearance rate from around 500 auctions on the weekend, so there are definitely more opportunities opening up for buyers. Although we are also still seeing some big results in the market place. We saw a runaway result on a commercial property on Glen Huntly Road, Elsternwick which sold for $9.2 million, smashing the reserve by $1.7 million dollars.
Another new suburb record was set in Essendon where a house in Leslie Road sold for $8 million dollars and in Cranbourne North, a property sold for $2,350,000 and set another suburb record result. The apartment market has definitely picked up with First home buyers dominating since stamp duty concessions have been increased and this is making a big difference. There was strong result in Holroyd Avenue, St Kilda East when an apartment sold for $855,000, more than $150,000 over the reserve.
Melbourne’s outer suburbs are seeing some strong growth in median unit prices and this is the area that we have been focusing more on in Group Block purchases as there is less supply of multi-level apartments in these suburbs. The outer suburbs such as Macleod, Kew East and Strathmore have all seen over 30 per cent growth in their median unit prices in the last twelve months. Kew East, where we are looking at purchasing in our Group Block opportunity, went up 38.9 per cent in the last year.
It definitely is not easy for the young First Home buyers to get on to the property ladder. Home ownership has dropped from 61 per cent in the early 1980s to 44 per cent and now it’s so much harder for the younger generation to be able to afford their first piece of real estate. This is harder in this very competitive market with very strong population growth and underlying demand.
WATCH: Frank Valentic's first update for June and what you need to know about the current property market.