Weekly Market Update- 15th August 2017
By | 15th Aug 17

Melbourne's property market had a consistent 73% clearance rate from 741 auctions and there were a few record results around Melbourne. A house in Sunshine North sold for $1,501,000 creating a new record for the suburb with strong competition from home buyers and developers. Housing affordability is one of the major topics in the housing market and there were a number of focus groups across Australia recently and was highlighted as the biggest concern due to the unaffordability of housing for buyers and also for their kid’s futures. Prices keep increasing and it’s so much harder to get into the market these days as I can remember buying my first house in 1995 in East Brunswick for $168,000 and a property across the road just sold for $1,600,000. This shows how far prices have risen and how hard it can be for a First Home Buyer to buy that same property today, only twenty-two years later!

In good news for investors, the rental market has definitely picked up and rental demand is as high as we have seen for a long period of time across our rental portfolio. At one of our recent open for inspections for a one bedroom apartment in Ida Street, North Fitzroy, we had a record 65 groups inspect the property and our investor landlord was delighted as we negotiated an extra $40 per week above the asking price. The rental vacancy rate has now dropped from around 3% a year ago to a low of 2.3% which is good news for investors.

The Melbourne market continues to perform strongly but the apartment market continues to have some patchy results. This was highlighted by a one bedroom apartment on Alma Road, St Kilda which sold for $124,000 in 1997. I can remember it well because I almost bought it and ended up buying a two bedroom apartment in Byron Street, Elwood at the same time for around the same amount. It had really strong growth up until 2010 when this apartment sold for $307,000 but the last seven years have unfortunately seen the apartment market become very patchy. This one bedroom apartment sold for the same price of $307,000 seven years later. The apartment I purchased in Elwood today would be valued at over $500,000, showing that the apartment market can deliver varied outcomes.

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 two bedroom apartment opportunity at 5 Herbert Street, Dandenong (approximately $250,000 returning approximately $225 to $240 per week).