Melbourne market shrugs off winter freeze: Secret Agent
GUEST OBSERVER
Uncertainty in the macroeconomic environment still persists. Greece’s bail out and the volatility of the Chinese sharemarket are still ongoing points of concern. The higher volatility is leading many to continue to invest in the property market.
Both the ANZ and Commonwealth banks have increased interest rates for property investors by 0.29%, which might be an early headwind to the Spring market.
Melbourne's auction clearance rate dropped to its lowest point in three months. The adjustment in investment rates for investors may have been the contributing factor. Despite the clearance rate dropping, some of the results were still pushing to new heights. According to Secret Agent’s rolling quarters, both houses and townhouses gained further price increases for another quarter.
Melbourne's median house price surpassed $700,000 for the first time, with Sydney now exceeding the $1,000,000 mark.
Winter auction listings are 20% higher than they were
back in 2014. This is a reflection of the confidence in the current market by sellers. There has been a lower than average number of listings for high quality property above the $1,500,000 mark. As a result, these quality offerings in inner Melbourne have received large premiums recently, with demand outperforming supply. This should ease a little as we approach Spring and a higher volume of quality homes come onto the market.
The suburbs currently booming according to Secret Agent's scorecard data are Abbotsford, Brunswick, Brunswick East, Northcote and South Yarra. It is interesting to note that suburbs performing the best are those that offer the most value for money and are within close proximity to the CBD. The exception to this is property in South Yarra.
$1,605,000 4-6 Phoenix Lane, West Melbourne
$1,920,000 10 Bell Street, Fitzroy
$1,511,000 10 Millward Street, Brunswick
$2,820,000 11 Mitchell Street, Northcote
$1,098,000 21 O'Connor Street, Brunswick East
$2,650,000 34 Airlie Avenue, Prahran
$3,600,000 52 Millswyn Street, South Yarra
$1,625,000 66 Cooper Street, Essendon
$2,346,000 116 Canterbury Road, Middle Park
$1,420,000 151 Shaftesbury Parade, Thornbury
Ken Premtic works on acquisitions at Secret Agent and can be contacted here.
