Melbourne is set to enjoy a vibrant spring selling season, as an increase in the number of properties available for sale will provide buyers with more choice and sellers with more competition. With interest rates remaining on hold, and stamp duty reductions in place for first home buyers, demand is expected to continue to outstrip supply amidst a greater number of active first-home buyers and investors, and sustained strong migration.
With Melbourne now the most in-demand housing market in Australia, the latest property sales data from Domain reveals the strength of the inner city Melbourne apartment market. Whilst the median unit price in Melbourne rose almost $10,000 over the past quarter to $474,848, the median unit price in inner urban Melbourne increased a very healthy 5% to $565,000.
The Real Estate Institute of Victoria’s winter sales results also highlight the increase in activity level of investors and first-home buyers over the past few months. Over 80% of established residential property sold during winter in Docklands, Southbank and Melbourne’s CBD was priced below $750,000. Well positioned, well presented and well priced properties in this competitive price bracket are now often attracting multiple offers within the first few weeks of hitting the market amidst a greater sense of urgency from buyers. Lucas Sales Director Chris Henson imparts, “the changes to stamp duty for first-home buyers have really encouraged them to act. First-home buyers today are better informed and more prepared, which allows them to confidently act to secure their first home more quickly than ever before.”
The prestige property market is also buoyant but has been limited by a lack of stock. “Really good luxury homes are selling quickly,” Chris adds. “More and more downsizers and empty nesters are seriously considering city-living, resulting in a shortage of quality properties for well-versed owner occupiers. We just don’t have enough options to fulfil the needs of our clients looking to owner occupy.”
The local rental market is also set to step up a notch. The traditional spring-summer leasing season is now not as marked, as rental properties are very much in demand all year round. However most interstate and international short-term moves are planned in the lead up to the end of the calender year, as work contracts are negotiated or renewed, and another year of tertiary learning rapidly draws to a close. The heightened demand for spacious one bedroom apartments is synonymous of the greater number of these working professionals, with local landlords now typically enjoying rental yields in excess of 6%.
To take advantage of current buyer or tenant demand or to find out how the price of your property has changed this year, click here or call 9091 1400.