Melbourne Market

[MTR]

Hi All

My experience in the Melb market is limited however recently I have been buying in Glenroy, Broadmeadows.
The properties which are flying are the development sites, in particular 3 unit deve sites. The figures stack up well for now, but prices are moving up very quickly and unfortunately these are getting harder to find and competition is fierce.

I am interested in feedback from those living in Melb on what is happening, is it just limited to the middle ring that is moving or is it happening everywhere. I also got a call from a RE agent yesterday regarding my Coburg property, and he mentioned that this area is running hot and reminds him of the 2007 boom.

What do you think are the factors driving the market up.

Cheers, MTR

 

[zayne]

ive experienced the exact same thing. Ive been looking in a few different areas of Melb including Frankston/Seaford for houses, and inner city suburbs like Hawhtorn, St Kilda etc for apartments and it seems that everytime im keen on one, its getting snapped up before I can make it down to view the property within days. First home owners seem to be flooding the open houses too Ive noticed.

 

[Harris]

All segments of melb market are currently experiencing significant activity and increasing values.

Aug data will show a 10% + increase in Melbourne median in 2009 whilst majority of inner and middle ring and some outer ring suburbs will get most of the growth.

I am not sure if this is a growth spurt or more of a longer term trend, but barring any sudden surprises relating to employment data, I fail to see why this spurt will not form a trend.

Harris

 

[BayView]

Yay!
Yay!
Yay!
Yay!​

 

[jingo]

I am interested in feedback from those living in Melb on what is happening, is it just limited to the middle ring that is moving or is it happening everywhere. I also got a call from a RE agent yesterday regarding my Coburg property, and he mentioned that this area is running hot and reminds him of the 2007 boom.

What do you think are the factors driving the market up.

Cheers, MTR

FHB homes across Melbourne, whether they be in inner, middle or outer suburbs are moving very quickly. Agents are reporting low stock levels in this segment of the market and are keen to list!

The FHB's grant has had an impact, and I notice now that more vacancies are starting to occur. Particularly in the inner ring suburbs, as renters have moved into their newly acquired PPOR's. Has anyone else noticed this?

A pm I spoke with in St Kilda this week mentioned that some tenants have had to give up their leases due to job losses and that rental stock was moving very slowly. She said that July is traditionally a slow month anyway, but this year was particularly slow due to the economic situation.

Regards Jason.

 

[Fire The Boss]

The following will be increasing activity in the current market:

1. FHB grant, boost & bonus (up to $32,000) increasing the number of buyers in the market, especially FHBs looking for new properties.

2. Very low interest rates enticing people to buy/borrow now - this will be affecting all buyer segments.

3. Near record low vacancy rates and strong rental demands - this will increase investor activity for properties most suited to being IPs.

4. Overseas buyers and immigrants who can recognise the current level of affordability in Melbourne as a major international city.

5....My list is obviously not complete or exhaustive.

Regarding vacancies, my PM has mentioned while the demand has come off a little in my area/s (Blackburn, Ringwood, Ringwood East), she said they still have a shortage of rentals available. All this has done is brought back rental expectations a little (slowed the increase) but that properties are still being let very quickly and with good returns.

I'm looking to buy at the moment and nearly every new property I look at seems to have a 15K to 20K premium on it, which I'm sure will be due to these grants. I look at property 2 to 3 years old and they seem to represent better value (IMO), especially considering they are ready to go (landscaped, window furnishings, air con, maintenance issues sorted, etc)

 

[MTR]

No doubt FHB have helped push the market along, however I was surprised to read that FHB make up less than 20% of the market.

My guess is that we are now seeing investors and established home owners moving in.

Cheers, MTR