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Guest observation
What really happened in Melbourne's property market last year, now that we have the benefit of hindsight?
What started out reasonably even turned into, without a doubt, a seller’s market. This also looks set to continue on in 2015, particularly as interest rates are confidently forecasted to remain at the current low levels for some time. If 2015 performs as scripted, vendors can continue to expect to achieve results more in their favour.
The Victorian state election played a significant role in the final quarter of 2014 and provided an excuse for the more cautious buyer to delay purchasing – a wait and see mentality.
This temporary withdrawal from the market place may prove to be ill advised inaction, as property prices continued to be buoyant and look likely to further increase (albeit moderately) this year. This predicted rise in property prices looks as though it will continue throughout 2015.
The imbalance between the number of buyers (more) and the number of vendors (less) will continue to be apparent as buyers compete for each property.
Low interest rates and no suggestion of movement encouraged many to invest in property during 2014. Purchasing property will continue to be one of the top investment choices for Australians in 2015 and we may also see more people using their self-managed super funds as the vehicle to invest in property.  This is unless some of the recommendations by David Murray in his recent financial system review are adopted.
With low interest rates predicted to be the norm, buying property is seen as a ‘safe’ and sensible long-term investment for many.
Mid 2014 saw a significant number of planning amendments with the creation of new residential zones allowing for much higher building density in areas with good access to shopping, transport and services. These changes will affect the growth and development focus in 2015, but is very dependent on the particular area. Positions close to all the sought after facilities (good schools, shops, transport etc.) will continue to perform well in 2015.
Early 2014 saw the owner/occupier market much stronger than the investor market. However, this became more balanced as the year progressed and, with the Australian dollar at a reduced level, we are likely to continue to attract foreign investors to our shores during 2015.
In particular, the Asian market which is enticed by high-quality public schools and universities.
Property owners can relax as the demand for property will stay strong in 2015 and low interest rates will give buyers both the confidence and the ability to purchase.
At Hodges, we are already preparing properties for sale for the first quarter of 2015. Expect to continue to see growth in 2015, albeit on a slightly more conservative scale than the previous year as there will be some economic uncertainty resulting from the Australian budget position.
Campbell Cooney is Principal and Franchise Director of Hodges Real Estate in Victoria.
 
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Demand for Melbourne property will stay strong in 2015: Hodges

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GUEST OBSERVATION
Bayside is often described as one of Melbourne’s most liveable areas and it’s easy to see why. Bayside is a large area with over 96,000 residents calling it home. From glitz and glamour in Brighton to the laid back vibe of Beaumaris there is something for everyone. 
Stretching around Port Phillip Bay, the area not only offers perfect beaches but also all the elements to make it a sophisticated and easy place to live. Large blocks of land and excellent schools attract families, whilst couples are drawn to its close proximity to the city, water front views and active outdoor lifestyle.
With a number of suburbs in the Bayside area, there is sure to be something to suit all tastes and budgets.
<a href="/news">Brighton</a>
Possibly the jewel in Bayside’s crown, Brighton is one of Melbourne’s most prestigious suburbs being home to many local celebrities and prominent individuals. The area boasts some of Melbourne’s most luxurious properties - from stately mansions to large Victorian and Edwardian homes.
Having a well-connected transport system and an excellent selection of private and public schools, Brighton attracts families looking for a sophisticated suburb to call home.
Brighton’s trendy cosmopolitan shopping precincts, situated along Church, Bay and Martin Streets, are popular among locals and tourists alike; providing shoppers and patrons with access to high-end boutiques, upmarket cafés and a number of gourmet providores.
Brighton is bordered by six kilometres of stunning coastline and is home to the iconic colourful bathing boxes at Dendy Street Beach.
Brighton’s property prices have risen significantly in the past 10 years – the median property price currently sitting at $1.9 million for a house and $940,000 for a unit. As of the 2011 census, Brighton had a population of just over 21,000.
<a href="/news">Sandringham </a>
Further along the coastline is Sandringham, another one of Melbourne’s most desirable Bayside suburbs - popular among families and older couples looking for laid back beachside living in good proximity to Melbourne’s CBD.
Health and fitness enthusiasts are attracted to Sandringham as it offers the perfect environment for a healthy outdoor lifestyle.
With almost a quarter of the area being made up of green space and parkland, residents can often be found running, walking and cycling along the foreshore.
Boasting some of the best beaches in the area, Sandringham it is the epitome of beach side living. The main area of Station Street gives residents everything they need on their doorstep including; restaurants and cafes, clothing boutiques, home-wares and bookshops, as well as a train station offering a fast direct service in to the city.
Sandringham is a popular choice for families and its large Edwardian homes, art-deco properties and California bungalows are in high demand.
For those looking to invest in a Bayside suburb, Sandringham is definitely one to consider. With large blocks of land available and a median house price of $1,180,000, the area has seen good year-on-year growth.
This article continues on the next page. Please click below.
 
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<a href="/news">Beaumaris </a>
One of Bayside’s quieter suburbs, Beaumaris has a laid-back village feel with the heart of activity its Concourse shopping precinct.
This quaint area is bustling with individual retailers such as high-end boutiques, eclectic gift shops, cafes and delis.
The Concourse is also home to the Lobster Cave restaurant – an institution amongst local residents. Other shopping areas include the Seaview strip on Balcombe Road which offers a number of amenities such as hairdressers, grocery stores and takeaways – many of the locals consider the fish and chips here some of the best in the area. There is also a small precinct in Keys Street.
For those looking to get back to nature the Ricketts Point marine sanctuary is a popular place for rock pooling, walking the dog or relaxing with the family.
Property styles vary greatly in the area – form large luxurious seafront pads to rustic bungalows. The relaxed vibe attracts families and older couples looking for the quiet life.
The median house price in Beaumaris is $1,027,500 and investors have seen an average year on year capital growth of 6.75% in recent years. Units have a median price of $742,500.
The rental market is quieter in Beaumaris than it is in its surrounding suburbs, with the number of properties rented significantly below the state average. The majority of properties are owned owner occupied. 
<a href="/news">Mentone </a>
Mentone is one of Bayside’s largest and more affordable areas, offering a great beach lifestyle with many leisure activities at its residents’ front doorsteps, including a lifesaving club, cricket club, football club, tennis club and lawn bowls club.
Mentone is a shopaholic’s delight with a number of retail strips including Como Parade West and Balcombe Road which houses restaurants, cafes, supermarkets, bakeries, home-wares and bookstores. Alternatively just a hop, skip and a jump away is Southland – one of Melbourne’s largest shopping arcades.
Mentone is a large suburb and buyers can find a diverse range of architectural styles in the area including Victorian homes, Edwardian properties, 1940s to 1970s architecture and an array of contemporary style homes.
The median house price in the area is $720,000 for a family home and $487,500 for a unit. As with many other suburbs along the bay, there is a high demand for property in the area, with an impressive average of 52 people looking at each property compared to the state average of 22 people per property.
When looking to purchase in Mentone, it pays to be wary of properties that are close to the Nepean Highway or too close to Mentone’s train line.
Campbell Cooney is a franchise director of <a href="https://www.hodges.com.au/" target="_blank">Hodges Real Estate</a>.
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