Weekly Property Market Update
By Advantage Property | 8th Oct 18
9th October 2018
Melbourne had its lowest clearance rate since the last down turn in the period between 2010 to 2012 with a clearance rate of only 55% from 659 auctions. We will continue to see more auctions as we gear up towards the peak Spring selling period. The strongest auctions on the weekend were for family homes and the best result was a family home in Gordon Street Balwyn which sold for $265,000 above reserve with three Chinese families fighting it out. Also a house in Clyde Street Thornbury on a good size 703 sqm block sold for $50,000 above reserve with two bidders fighting it out.
Developers that are savvy are taking advantage of the current market trends and preferences and are building larger three bedroom owner occupier style units or otherwise they are building single level or double storey townhouses. These are the middle ground between houses and apartments and are in much more demand now as many buyers are being priced out of buying houses. The townhouse or single level unit can be a good alternative option. In the period from 2014, the number of townhouses constructed has increased from 8,000 up to 13,000, which is a major increase as savvy developers have taken advantage of this growing trend.
Melbourne continues to lead the nation with our population growth with 2.5 percent annual growth in the period between 2011 to 2017. It is now the fifth fastest growing capital city in the world and most the growth is in the middle to outer suburbs as these areas have seen 1.8 million of the 2.1 million population growth in Melbourne. Buyers have been priced out of the inner suburbs and are now targeting more of the outer suburbs.
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