The Melbourne summer property market has started strongly with soaring buyer demand amidst a shortage of stock. Despite a recent surge in sales listings, on average across Melbourne there is almost 20% less property for buyers to choose from when compared to previous years.
“Low stock levels tend to create an increased level of urgency in the housing market as buyers compete with each other,” states Lucas Sales Director Chris Henson. “The number of property listings is down due to a variety of factors – the costs associated with buying and selling such as stamp duty, tightened lending criteria from banks, and affordability constraints as prices continue to increase.”
Sales results from the past week in Inner City Melbourne reveal two key buying trends: investor activity in the sub-$500,000 market and apartments in the $600,000-$800,000 price range.
Four of the past five sales last week in Docklands were two bedroom apartments priced between $600,000-$800,000, including 307 in The Conder which was secured by keen buyers off-market. Both investors and owner-occupiers are active in this market segment, enjoying strong rental returns and stamp duty concessions respectively.
The sub-$500,000 market is also running red-hot for investors with six sales in the past week in Melbourne CBD. With interest rates set to remain on hold until February, this increased investor activity is expected to continue.
To take advantage of current buyer demand or to find out how the price of your property has changed this year, call our team on 03 9091 1400.