Is the Melbourne market in the ascendancy?
When people talk about the Australian property market, Sydney tends to hog the limelight. But in the wake of the Reserve Bank of Australia’s recent announcement that the cash rate was staying at 2 per cent, one commentator has suggested that our city is currently growing while the New South Wales capital slows down – good news for anyone thinking about moving to Melbourne.
Should you think about moving to Melbourne, given the current market?
When discussing the cash rate, Dr Andrew Wilson from Domain noted the following:
“Concerns of an overheating Sydney housing market are fading with local auction clearance rates falling sharply over August. The Melbourne housing market, however, continues to rise, although underlying price growth remains solid rather than strong.”
But what are the particular ways in which our city is performing well? Understanding this could help you seek out the best places to live in Melbourne.
Our auction market is strong
According to CoreLogic RP Data, the proportion of property listings in Melbourne that were auctions (39 per cent) was higher than anywhere else in the country. Some suburbs were actually dominated by auctions – real estate in Kew East, for example, saw 97.1 per cent of listings take the form of auctions. Similarly, Carlton North’s representation of listings that went to auction was 91.3 per cent.
Of course, auctions aren’t always the best way to buy or sell property but they can represent a busy market.
Best winter value gains in the country
Winter is traditionally a time when property market activity slows, but Melbourne real estate has remained buoyant – perhaps because of the low interest rates keeping buyers interested in securing a home. According to the CoreLogic RP Data Hedonic Home Value index, property here increased in value by 8 per cent over the three months to the end of August.
“Melbourne real estate has remained buoyant”
That’s more than anywhere else in the country – even Sydney. And as we head into the spring selling season, it could be expected that activity pushes even higher. Of course, the Melbourne property market as a whole is actually made up of many smaller areas that undergo their own fluctuations. Ascot Vale real estate might grow and contract in a different way to the auction-dominated Carlton North market, for example.
Regardless, it’s clear that Melbourne is still looking positive for both buyers and sellers of property. To pick apart the best suburbs in Melbourne for your needs, make sure to get in touch with us here at Nelson Alexander. We have 14 inter-connected offices across the city, which can vastly increase your reach and property power.