The 2017 Melbourne property market has shown its strength with Corelogic today reporting the median Melbourne dwelling price increased by 1.5% in February to $610,000. A decrease in the number of properties available for sale is creating a sense of urgency amongst buyers and resulting in solid prices and lower days on market for many homes.
Low interest rates, strong population growth and stable economic performance are supporting the strength of the market, particularly underscoring increasing investor demand. Recent data from the Australian Prudential Regulation Authority reveals that up to 75% of domestic housing loans taken in the last three months have been for investment purposes. With the increasing cost of property softening rental yields, investors are often utilising negative gearing to their advantage and remain buoyed by the prospect of long-term capital gains.
The popularity of our local market is evident, with 23 sales in Melbourne’s CBD, Southbank and Docklands reported last week by the Real Estate Institute of Victoria. Lucas sales highlights for the week included a two bedroom waterfront apartment in Docklands’ Nolan secured off-market and a near-new two bedroom apartment in The Quays that sold after receiving several offers from keen investors, both local and interstate.
Lucas Sales Director Chris Henson reveals, “Our local property market is running red hot. Buyer activity is high and well-presented, well-priced property is often being sold in a matter of days. Currently properties priced up to $750,000 are in high demand for investment. Our team is then leasing these sold properties within 10 days post-settlement on average. This is resulting in very happy sellers, buyers and investors.”
To make the most of current market conditions or for assistance with purchasing your next investment property, contact your local property experts on 03 9091 1400.