Melbourne's Hot market

Recently the property has been very hot in Melbourne around my area (southeast). Some of the property has gone up 20% in the last 9 months. Is it still a good time to buy in or we should wait for it to cool down.
 
Mate, keep an eye out.
Common sense would say, dont expect 25%PA increases next year when IR's are on the up. I've seen 25%+ since november 2008 - if only we had a time machine.
Having said that, why wouldnt you buy quality inner/mid property for the long term. Cant see the demand decreasing in the near future.
buy quality
 
Hi all,

Pieman,

Common sense would say, dont expect 25%PA increases next year when IR's are on the up.

Common sense is very uncommon. Your quote above is not entirely accurate in its portrayal of 'common sense'.

Common sense would have you look at history as a bit of a guide. History over the last 30 years tends to show Melbourne having good price rises WHILE interest rates rise, especially early on in the raising cycle. Sure, high IRs eventually kill off the boom, but it usually takes a few years.

My common sense says not to discount the possibility of large rises both this year and next while the economy recovers.

Each to their own,

bye
 
Recently the property has been very hot in Melbourne around my area (southeast). Some of the property has gone up 20% in the last 9 months. Is it still a good time to buy in or we should wait for it to cool down.

The market is not going to cool down IMO and whilst 20% in 9 months is good CG, when the market gets really hot you can get more like 40-60% increases in a year.
 
Hi PU
I hope u are right.
I have been purchasing in North of Melb, red hot, but I believe all of Melb is going crazy.
I have noticed more stock on the market, perhaps we will see prices continue to rise and then in Dec it will plateau then continue to rise in 2010.
I believe we are in the early stages of a property boom, good time 6 months ago, good time to buy NOW.

Cheers, MTR
 
I have noticed more stock on the market, perhaps we will see prices continue to rise
I am seeing more stock on the market in Sydney too. Gee you'd hope so too - the little that was on the market during winter got snapped up and prices rose because of stock shortgaes. Spring traditionally sees more stock on the market as people hold off during winter. However, the good stuff is still being snapped up within hours or 1 day max.

I believe we are in the early stages of a property boom
I agree with you - that is my gut feeling too. Time will tell :)


good time 6 months ago, good time to buy NOW.
Yes. Property we have purchased for clients has gone up min. 10% mostly in the last 6 months.
 
1 bedroom unit in inner western suburbs of melbourne purchased for 191k in march 2009, got valued by bank at 220k yday.

so thats a round a 14% return. in 6 months
 
Spending a lot of time Bayside, I've noticed a dramatic change from a year ago when property was sitting on the market for some time before settling privately.

The sprawl down the bay has begun and suburbs like Edithvale, Chelsea, Bonbeach etc have really started to pickup with ~450k the minimum for a 2-3 bdr house with large yard.

One would think this could continue further down the bay,with the long-heralded Frankston possibly about to enjoy it's time in the sun...

As for the west, every time you think suburbs like Yarraville, Seddon etc are overpriced and have run too hard, they just seem to go from strength-to-strength and rise further. I'm sure there's a lesson in there somewhere.
 
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