Melbourne property market continues to boom
Sydney might have experienced its boom, but Melbourne’s property market continues to boom and is definitely still hot as the city’s median house price has increased to $729,500 in the three months to September 30 2015 – a new record for Melbourne.
According to REIV CEO Enzo Raimondo, the $729,500 median is the highest it’s ever been and up by 4.5 per cent from the previous quarter.
One of the major reasons that has helped to increase house prices across Melbourne is the continuous stream of high auction numbers over the last few months.
Mr Raimondo commented that, "Melbourne’s buoyant property market has experienced one of the strongest starts to the traditional spring selling season on record. We’ve seen super Saturday auction weekends recorded throughout August and September.”
Over 4,400 auctions took place in Melbourne throughout September, whilst October also has a high number already scheduled in. Week ending Sunday 18 October saw a clearance rate of 74 per cent, up 2 per cent from last week and 2 per cent up from this weekend last year. 1,101 auctions took place this weekend, slightly less than last week which saw 1,290 auctions.
So which suburbs and regions in Melbourne are experiencing the highest level of growth? In particular, both the middle and outer suburbs of Melbourne were the main growth drivers in the three months leading to September 30. House prices in these regions increased by 4.4 per cent and 5.1 per cent respectively, whilst apartment prices also increased in September to $532,000, an increase of 2.6 per cent.
Looking back in time, in the June 2015 quarter, house prices stood at $698,000, whilst apartments were $518,500 with an annual change of 8.2 per cent and 5.1 per cent respectively.
According to Mr Raimondo, “The market is currently on an upwards trajectory. The September quarter was extremely strong and that trend is continuing into the December quarter.”
And as Melbourne has been ranked as the world’s most liveable city again for the fifth year in a row, this recognition has swayed more and more people to come and live here. In fact, figures from the ABS show that Victoria gained an extra 101,500 residents in the year to December 2014, whilst Melbourne also gained an extra 95,600 people.
Melbourne really is a multi-cultural city that appeals to all walks of life and there is something for everyone here. Although there are concerns of an oversupply of city apartments, the city’s population is increasing in size and by 2056; the population of Melbourne is actually expected to overtake Sydney’s population to become Australia’s most populated capital city with over 8 million people, almost doubling from today’s figures. This means that new apartments and properties will be required to fulfil demand.
However, if you are looking to buy a property in Melbourne, then there are still plenty of affordable apartments and properties for sale, in the inner city as well as the middle and outer rings. You might think that buying a property in a booming market is a bad idea, as it is more expensive, but as properties typically double in value every 10 years then time spent in the market is a worthwhile venture, particularly as the property market is expected to continue to grow this year.
If you have the deposit available, then now is as good a time as any to buy a property off the plan and benefit from this growth phase that Melbourne is currently experiencing. At iBuyNew, we can identify where the next high growth suburbs are and put you on the path to financial freedom. And the great thing is, you don’t need to start paying off your mortgage immediately as it is off the plan. Instead you can use the time to save money, ready for when settlement arrives.
Learn more about why the Melbourne property market continues to boom and what new apartments are available to buy by contacting iBuyNew on 1300 123 463 or submit an online enquiry today.
Published on 19th of October 2015 by Marty Stanowich