Melbourne Market Update EOFY 2024.
As winter sets in and we approach the EOFY, I am sharing my unfiltered thoughts on the macro level of the Melbourne Property Market.
A projected 6 million people will be living in Melbourne by 2031-32, and this will see us overtake Sydney as Australia’s largest capital city.
Here are a few truths I’ve seen play out over the last 12 months.
Truth 1: Not all but many property investors are leaving the Victorian Market and looking at our rival states as a more straightforward path to wealth creation. Higher land tax rates, high interest rates, and onerous compliance changes contributed to this. The number of rental properties has decreased, and builders and developers are less active than in the past. These factors are one reason rents increased by over 11% in 2023 alone.
Truth 2: This is the first time I’ve seen property buying conditions as good as this since 2018-19. Clearance rates are hovering between 50% and 60%, indicating a buyers’ market, and our negotiating power as buyer agents is significantly higher in specific market sectors. The market with the most room for negotiations currently is the Mornington Peninsula.
Truth 3: In these complex times, the role of an experienced selling agent committed to providing you with the unvarnished truth is crucial. It will be the difference between selling your home or throwing money away on a failed marketing campaign. When selecting a selling agent to sell your home or investment property, experience is not only significant; it’s the key to your success in this market.
Truth 4: It’s currently a price-sensitive market. If you find yourself inspecting a quality family home or turn-key property that ticks the boxes on location, floor plan and build quality. If the home is renovated or new and is priced well, you will likely have competition from other buyers. On the contrary, if you’re looking for land to build a new home or to renovate an older rundown house, you may have some serious negotiating power. It simply comes down to how motivated the seller is.
In summary, the Victorian property market and the economy will continue to face some challenges in the short term.
We have stage 3 tax cuts delivered in July, which will provide some relief.
However, the relief many are waiting for is the cash rate to drop.
Melbourne will continue to be a great place to live and invest in the medium to long term.
If you have questions or need guidance on navigating the Melbourne real estate market, please book a call using the LINK.
BONUS TRUTH!
My favourite one of them all!
The one thing you can control in the current environment is your mindset!
Humans tend to find what we are looking for; make sure you’re looking for the good in life, not the bad!
I’m Andrew Date from Industry Insider Property.
Our clients consistently say we’re the best decision they made in their property journey. Read our reviews on LinkedIn and Google to see why.
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