How’s The Market | Melbourne Update Sep 2024
In This Week’s How's The Market | Edition 82
How’s The Market? Melbourne Update Sep 2024
An Incredible Period Property In Camberwell
Perth & Adelaide Median Dwelling Prices Higher Than Melbournes?
How’s The Market? Melbourne Update Sep 2024
There have been a lot of ups and downs in Melbourne’s real estate market of 2024.
And there is no doubt that Melbourne has struggled when compared to the other states of Australia.
CoreLogic’s most recent monthly housing data shows that Melbournes’ capital city and regional markets have fallen in value by 1% & 1.1% respectively.
Comparatively, markets like Perth, Adelaide & Brisbane have grown by 24.4%, 14.9% & 15% respectively over the last 12 months.
You can see below that compared to Sydney, Melbourne's house prices are the cheapest they have been in over 20 years being circa 40% cheaper.
So how has this been translated on the ground?
Last week (Sep 15th) was a large auction weekend in Melbourne due to the public holiday and Grand Final this Saturday with 1341 auctions held.
Melbourne had an auction clearance rate of 48% (SQM) which shows a fairly weak market.
However, this is where markets within markets, quality of stock and price point hugely differentiate the feeling on the ground.
Last weekend, I attended three auctions across Glen Iris & Malvern East for clients in the price range of circa $2m.
Each property was a 4 bed 2 bath on a reasonable land holding of between 400m2 - 700m2.
This price point is generally on the lower end for a 4 bed 2 bath in these markets and what we saw is that each of these properties was highly competitive with 3 - 4 bidders and all sold around $100k - $150k above their reserves.
I believe this is due to it being a competitive price point historically, though speaking with the agents after the auction, they were surprised by the turnout and results.
This is certainly not what to expect in all markets and price points, however.
Over the last month, we have noticed that many properties have only had 1 genuinely interested party with agents stating that there is often another 1 or 2 parties on the fence that have shown some interest but haven’t promised they will be at the auction.
This has meant that many of the agents have been accepting offers prior to auction and sometimes there can be great deals made when purchasing prior to auction.
Last week, we bought a property in Caulfield North 3 days prior to the auction and ultimately secured it for a price well below what our client was willing to pay and where the comparable sales suggested it was worth.
I believe due to the continuing negative sentiment in Melbourne and the fact that there are still very few investors looking at Melbourne, there is an incredible opportunity to buy in the final months of this year.
All signs are pointing towards above-average house price growth for Melbourne over the next few years.
What The Agents Are Saying
Over the last few weeks, I have been speaking with agents across the inner city apartment markets, inner eastern markets for period homes and the acreage market towards the peninsular.
All agents have echoed a similar sentiment that they think it will be a tough spring for selling and that it is looking to be more of a buyer's market.
In saying this, it is clear that A-grade properties that are renovated on good streets and that are priced well are selling quickly and still achieving strong results.
B & C grade properties that have either compromised positions, property attributes and/or price by being overpriced are really struggling with some properties sitting on the market for months.
Many agents have told me about the struggles of conditioning their vendors down on price in the current market and also believe it is a great market to be a buyer.
The Wow Factor!
31 Canterbury Road, Camberwell VIC 3124
Talk about wow factor!
Check out this facade.
This property is a great example of period grandeur blended with modern renovations.
Check out the archways & oak parquetry floors!
Price guide: $9,800,000 - $10,780,000
In The Media
Adelaide, Perth overtake Melbourne home values
The above article and variations of it have been one of the most talked about articles in property circles, blogs and podcasts of late.
The article states that median dwelling prices of Adelaide and Perth have now overtaken Melbourne. This is the first time on record that Adelaide's dwelling price has surpassed Melbourne’s and the first time since 2015 for Perth.
Articles like this, I believe, are what will eventually create a snowball effect of investors leaving the Perth, Adelaide and Brisbane markets and returning to Melbourne.
Final Thoughts
As we approach the end of the year (how is it already the end of the year??) it looks as though Melbourne could be experiencing some of the best buying months ahead that it will face over the next 5+ years.
Right now you can negotiate harder, secure deals prior to auction and get access to more off-markets like we are now.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
