Elite’s Weekly Market Wrap
Firstly, a big congratulations to our three clients who were successful purchasing properties at auction on the weekend. Two being owner-occupier purchases and one for an investor.
The cooler weather has been a welcome relief for many but the rain didn’t deter people attending auctions over the weekend. The clearance rate remained at similar levels this week reaching 82%. Volume numbers are still low (but more than the last weeks) however we should see auction numbers increase significantly over the next four weeks.
Melbourne’s median price has jumped to $901,951 although it is still lagging behind Sydney by a considerable amount. Sydney’s median price has hit $1,142,212 exceeding the peak in 2017 leaving Melbourne behind by a staggering 26%. But what does this mean for Melbourne’s property prices? Sydney is fast becoming too expensive for many buyers and Melbourne is being viewed as an good option to invest in. We are also experiencing a trend in Sydney residents making the move to Melbourne as they cannot afford to buy a property in Sydney. With Melbourne’s population tipped to exceed Sydney’s in the next ten years, it is likely that Melbourne’s median price could very well get to similar levels that Sydney has and very possibly exceed it.
Enjoy your week!
Kim Easterbrook and the team at Elite.
Melbourne | 17 February 2020
This week: 494 Auctions | Clearance: 82% | Last Year: 60% [source: REIV]
Purchase of the week
5/29 Shoobra Road, Elsternwick
This property was targeted by our team for a client who was looking to purchase a long term investment in Melbourne. The brief was to source a property that has good capital growth but also can easily find quality tenants. Villa units can make excellent investments because developers are not building them anymore so the supply of them is low. They are highly sought predominately by first home buyers, downsizes and investors. Elsternwick is a premium suburb of Melbourne where many wish to live. In addition to this, the unit was very well located close to the train station and trams, and the ever-changing Glenhuntly Road.
This demand was demonstrated when 265 buyers inspected this property throughout the auction campaign. The 100 strong crowd included many buyers who were wanting to secure this property. An aggressive bidding strategy had to be displayed at the auction which was successful with Elite being able to secure the property for $855,000.
Rental of the week
4/62 Moonya Road, Carnegie
$470 per week
Not only do villa units have strong demand from a buying perspective, they are also in demand from tenants. This is because they have the feeling of living in a small house, without the maintenance and upkeep and are at a lower price point.
These low maintenance properties attract professional couples with one or no children, single people of all ages and tenants looking to share a property. This property is currently up for lease by the Elite team and will be sure not to last long.
Refer A Friend and Receive a $200 Voucher to Stokehouse.
Refer a friend to our Buyer Advocacy or Property Management services and enjoy a $200* voucher to Stokehouse Restaurant for a relaxing lunch or dinner by the Bay in St Kilda.
Please contact our team on 9592 1122 or email firstname.lastname@example.org
* Offer applies to a referral that leads to the engagement of our services.