Melbourne Property Market Update
The second quarter of 2021 to the end of June has seen a continuation of the strong market conditions in Victoria. The last quarter saw the median house price rise by 5.5 % to $929769 in Melbourne and median unit prices up 2.5 % to $610,043
In July the median hose price rose by 1.7% to $945,769. The median unit price rose by 0.4% to $612,711
Regional Victoria has been the star performer with the median house price rising 5.5 % for the quarter to $514,668 and up 1.5% for the month of July to $527,098 .
The Melbourne residential home market is in a steady upward cycle and I expect this to continue at least to the end of the year whilst stock levels and listings remain low.
The current level of uncertainty will mean fewer vendors will list their property for sale.
There is growing fear among Vendors that if they sell now they may find it difficult to buy back into the market.
Lockdowns and a busier than usual market over winter has meant that many agents have been too busy to prospect. When prospecting stops, so does future listings in Spring.
Not all properties are performing the same. Well located family homes are leading the pack, however, those properties with compromise i.e. poor floor plan, too much work, main road location etc are taking much longer to sell and require vendors to reconsider their reserve pricing.
Older style 2 bedroom flats in low density blocks with courtyards and balconies and in good locations are starting to move again after a 5-6 year period of stagnation. Size, natural light, storage and private outdoor spaces are what most buyers are seeking. In terms of 2 bedroom flats we are looking for those between 70m2 and 100m2 in areas such as South Yarra, Toorak, East Melbourne, Richmond, Prahran, Armadale, Elwood and St Kilda. These are proven investment locations with solid history of capital growth. Expect to pay in the range of $650,000 to $900,000 for a good 2 bedroom flat in these areas that tick all of our boxes.
The smaller 1 bedroom flats and newer high density apartments in the CBD, Docklands and Southbank are less desirable due to the lack of scarcity, high owners corporation fees and over supply cladding issues causing them to be much harder to sell right now. Again the larger older style flats in low density blocks prove to be the exception. I have seen some very good examples for 1 bedroom flats selling in the range of $600,000 to $700,000 in South Yarra and East Melbourne
Single level villa units and townhouses under $1,500,000 have proved to perform very strongly aver the past 12 months, particularly those without owners corporations. It is becoming increasingly difficult to buy investment houses in Melbourne under $1m and so the townhouse, villa unit and semi detached dwelling has become the next best thing
Investment houses in regional Victoria are selling for around the same price as a good 2 bedroom investment flat in some of the best inner city locations in Melbourne. Having said that I usually keep aligned to established regional centres such as Geelong, Ballarat and Bendigo , cities with diversified economies and strong infrastructure.
In Geelong, a good investment house in Newtown, East Geelong or Belmont will sell between $800,000 and $1,200,000
Change in median house price since last market peak
Source: Australian Bureau of Statistics
If you are thinking of Buying or Selling, please contact Greville Pabst, your trusted property partner on 03 9589 3886 or email us.