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Market Report: July QTR


Market Snap Shot

Melbourne home values have increased by +7.60% over the past three months and are +7.60% higher over the past year. The annual rate of value growth has slowed from a peak of +14.2% in September 2017

Melbroune’s Median House Price: $826K, Interest Rates: On Hold 1.75%, 28 New Million Dollar Suburbs 

 

Buyers Or Sellers Market?

Strong clearance rates and high auction numbers through to mid-December indicates a strong finish to the year. Melbourne is Australia’s fastest growing state and with a strong economy and low interest rates, buyer demand is likely remain strong through 2017: Melbourne Growth Suburbs.


Interest Rates

The reserve bank lowered the cash rate in May 2016 by 25 points , the current rate: 1.75%, rates have remained unchanged since. More info on interest rates check out our monthly RBA report. 

Rental Vacancy Rates

Vacant properties in metro Melbourne fell slightly to 2.1 per cent in August, while remaining stable in regional Victoria to 2.3 per cent. Median or Average rent for houses in metropolitan Melbourne fell to $420 a week.

Melbourne Auction Market

The Melbourne auction market reported another increase in auction activity over October with clearance rates rising from 74. percent over September to 76.3 percent. This was also well ahead of the 69.0 percent recorded over October 2016. Average weekend auction volumes fell over the month from 800 to 706 and also remained well below the 862 averaged over October last year. Across Melbourne, the market is likely to remain steady, with solid results in a range of areas across the city. While listings remain low and clearance rates high, the REIV expects median house prices to increase once again in the December quarter followed by the traditional slowing in January before picking up again by March. 

Check out Weekly Melbourne Auction Results. 


Median house price

Melbourne’s median house price has increased by $22,000 to $822,000 for the first time, new data from the REIV shows. 

Below is an example of Melbourne’s mean house price’s over the last 30 years which demonstrate aggressive price growth over the last 9 months.

Year Median Price
1985 89,107
1990 163,655
1995 160,876
2000 243,133
2005 399,243
2010 633,232
2015 581,355

 

Over the previous 12 months, there were 10,668 dwellings sold for at least $2 million, 10 years earlier there were 3,254 sales and 20 year earlier there were just 236 sales.

 

Foreign Investment Review Board News Realises:  FIRB-AR-JULY-2017

The value of foreign investment approvals for Australian residential real estate surged 75 per cent last financial year to a record $61 billion and could account for around a quarter of new developments.

Data from the Foreign Investment Review Board show that there were 36,841 applications by non-citizens who were also not permanent residents to buy residential properties.

Melbourne Growth Suburbs
.

Suburb Jun-17 Median
TOORAK $4,750,000
MALVERN $2,750,000
BRIGHTON $2,600,000
CANTERBURY* $2,550,000
KEW $2,290,000
BALWYN $2,255,500
ARMADALE* $2,247,500
MIDDLE PARK* $2,125,000
ALBERT PARK $2,120,000
BLACK ROCK* $2,120,000
HAMPTON $2,120,000
SURREY HILLS $2,111,000
CAMBERWELL $2,108,000
CAULFIELD NORTH* $2,100,000
GLEN IRIS $2,082,500
MALVERN EAST $2,025,000
ELWOOD* $2,013,000
HAWTHORN $1,990,000
KEW EAST* $1,975,000
ELSTERNWICK* $1,940,000
BRIGHTON EAST $1,925,000
HAWTHORN EAST* $1,875,000
SOUTH YARRA $1,872,500
MONT ALBERT* $1,865,000
BALWYN NORTH $1,856,500
ASHBURTON* $1,850,000
ALPHINGTON* $1,805,000
IVANHOE EAST* $1,790,500
BOX HILL* $1,785,500
SOUTH MELBOURNE* $1,732,000
SANDRINGHAM* $1,727,500
NORTH MELBOURNE* $1,723,000
CARLTON NORTH* $1,717,500
MCKINNON* $1,700,000
BEAUMARIS $1,690,000
FITZROY* $1,667,500
MONT ALBERT NORTH* $1,660,000
PORT MELBOURNE* $1,650,000
CAULFIELD SOUTH $1,605,000
FLINDERS* $1,562,500
BALACLAVA* $1,560,000
TEMPLESTOWE $1,526,944
FITZROY NORTH $1,520,000
PRAHRAN* $1,520,000
DONCASTER $1,500,000
FAIRFIELD* $1,500,000
PARK ORCHARDS* $1,500,000
WINDSOR* $1,500,000
ORMOND* $1,486,000
BOX HILL SOUTH* $1,483,000
CLIFTON HILL* $1,480,000
ST KILDA EAST* $1,470,000
MOUNT WAVERLEY $1,456,000
CARNEGIE* $1,455,000
DONCASTER EAST $1,441,000
BENTLEIGH $1,440,500
SORRENTO* $1,430,500
BLACKBURN $1,430,000
IVANHOE $1,413,500
ESSENDON $1,410,000
MURRUMBEENA* $1,410,000
GLEN WAVERLEY $1,405,000
HIGHETT $1,400,000
BURWOOD $1,385,000
ST KILDA* $1,385,000
BOX HILL NORTH $1,365,000
ASPENDALE* $1,352,500
HAMPTON EAST* $1,345,500
ABERFELDIE* $1,340,000
ASHWOOD* $1,335,000
TEMPLESTOWE LOWER $1,330,000
WILLIAMSTOWN $1,328,500
NORTHCOTE $1,325,000
MOONEE PONDS $1,316,250
MENTONE* $1,306,000
DONVALE $1,305,000
ESSENDON WEST* $1,305,000
RICHMOND $1,277,500
CLAYTON* $1,275,000
ABBOTSFORD* $1,271,000
PARKDALE* $1,270,000
BRUNSWICK $1,267,500
BRUNSWICK EAST* $1,265,000
BENTLEIGH EAST $1,261,117
BLACKBURN SOUTH* $1,261,000
BULLEEN* $1,258,500
ASCOT VALE $1,255,000
OAKLEIGH* $1,250,000
THORNBURY $1,250,000
ROSANNA* $1,240,000
HEIDELBERG* $1,230,000
STRATHMORE* $1,227,500
VERMONT SOUTH $1,225,000
OAKLEIGH EAST* $1,210,000
BRUNSWICK WEST* $1,204,000
COLLINGWOOD* $1,200,000
NEWPORT $1,200,000
NUNAWADING* $1,195,000
MOUNT ELIZA $1,192,500
BURWOOD EAST* $1,180,000
CHADSTONE* $1,168,000
FLEMINGTON* $1,167,500
CHELTENHAM $1,155,500
MARIBYRNONG* $1,155,000
KINGSVILLE* $1,149,000
KENSINGTON* $1,145,000
BLACKBURN NORTH* $1,130,250
EDITHVALE* $1,130,000
WHEELERS HILL $1,130,000
PASCOE VALE SOUTH* $1,125,000
VERMONT* $1,112,000
LYSTERFIELD* $1,105,000
YARRAVILLE $1,101,000
FOREST HILL $1,092,500
MOORABBIN* $1,090,500
WONGA PARK* $1,090,500
OAKLEIGH SOUTH* $1,085,000
WARRANDYTE* $1,054,000
MITCHAM $1,039,000
ALTONA* $1,025,000
LOWER PLENTY* $1,024,000
SPOTSWOOD* $1,013,000
PRESTON $1,010,000
WANTIRNA SOUTH $1,010,000

 

Our head buyer’s agent Mark gives his commentary at what is happening in Melbourne real estate market.

Great news for Sellers as the market shows no signs of slowing down. The December quarter was stronger than expected and the market is only expected to improve.

Every day people ask me is now a good time to buy property? I look at our big brother city Sydney where the median house price broke though $1M in the third quarter of 2015, by comparison the Melbourne market has quite a way to go. Melbourne, previously the hottest housing market in the nation up until recently, saw house prices rise by 1.6%, taking the gains since February to 2.1%.

According to the latest Home Value Index released by CoreLogic RP Data, Australian capital city house prices jumped by 5.0% in Jul, Aug & Sep Qtr, leaving the increase over the first five months of the year at 5.0%. Based on current market conditions remaining consistent the future out look for the market cooling further seems highly unlikely for the short term.

Australian banks tightening home lending criteria since it began a crackdown in late 2014 measures have strengthened lending standards in the housing market. This has been noted by the RBA and APRA. Growth in lending for housing purposes has slowed a little this year. 

Mark Ribarsky, Wise Real Estate Advice.