What can you expect from the Melbourne market?

The Melbourne property market has been hailed as one of the country’s standout performers for some time, but just how well is it faring at the moment? By its very nature the real estate sector is constantly shifting, which means keeping up to date with all the latest goings on and making decisions based on current conditions, isn’t always easy, especially in a market as complex as this.

If you’ve been thinking about moving to Melbourne, or making a property investment in the city, then there are several key pieces of data that may aid your decision.

Property prices are moving in the right direction

No matter which category you fall into – homebuyer or investor – property price growth is likely to be at the forefront of your mind. The good news is that at the moment, Melbourne’s best suburbs are living up to their name and offering decent returns.

Melbourne’s best suburbs are living up to their name and offering decent returns.

The latest figures from the Real Estate Institute of Victoria (REIV) point to considerable rises in the metro Melbourne area. During the three months to June, the average price increased to $706,000 from $671,000 in the March quarter.

Strength wasn’t only confined to the inner suburbs which experienced a growth of 6.2 per cent, the middle and outer suburbs were also up 5 per cent.

“A number of factors have contributed to the strong result,” noted REIV CEO Enzo Raimondo.

“A record number of auction sales in the first half of the year, low stock on market, high levels of migration and record low interest rates have been good news for sellers.”

Stock listings are in decline

Although a fall in stock listings might not bode well for buyers, it creates quite a lucrative market for sellers. SQM Research revealed that in July, Melbourne’s residential stock was down 10.3 per cent from a year earlier. This shows just how popular the market has become over the past 12 months, as more buyers start to recognise the benefits of moving to Melbourne.

However, the month-on-month results worked more in buyers’ favour. Compared to June, the number of available properties in the Victorian capital increased 7.8 per cent, perhaps as people had more confidence to move.

Auction sales show no sign of slowing

Auction market activity is also a good indicator of how well an area is performing. According to the REIV, Melbourne has become a hotbed over recent months, with sales hitting an all-time high throughout the year to June 30.

Outer Melbourne suburbs were particularly popular, as this area alone saw a 20 per cent rise in transactions. As a result, the city’s clearance rate hit 80 per cent, that’s 7 per cent higher than 12 months ago.

Melbourne property prices are moving in the right direction.

Sentiment is on the up

Speaking of confidence, this is another factor that will weigh heavily on the success of the property market. Thankfully, the outlook seems to have improved over recent months, which could be just what the nation needs to get moving again.

Results of the September quarter ANZ/Property Council Survey; which polls industry professionals on their forward views, show that Victoria has witnessed this trend. Its confidence reading was up from 131 to 134 between the June and September 2015 quarters, meaning it now ranks slightly higher than the national average of 131.

“All the indicators point to a steady property market injecting strength into the national economy, creating jobs and boosting the supply of new housing,” explained Property Council Chief Executive Ken Morrison.

Positivity in the real estate sector can only bring advantages if you’re hoping to buy Melbourne property. There might be competition for properties in the best Melbourne suburbs, but when it comes to selling on, there should be no shortage of keen buyers.

For expert assistance buying and selling property in Melbourne, get in touch with Nelson Alexander. We’ve been helping people realise their investment ambitions since 1971 and with 13 offices across the city, we’re sure to add value to your search.