Melbourne’s property market has experienced the transition from the booming phase to the correction phase in 2018.
Both buyers and sellers, who have been active in the market place, have established their own understanding of the current market. Comment on the uncertainty of the future market has been more prevalent than in the past.
Sales results have been interpreted differently by relevant parties. Some of them reflect the reality of the current market, others do not. Looking back at the forecasts of the property market in 2018 conducted by those well known organisations in 2017, it is found that many of these forecasts are not verified by the reality in 2018 upto date. Social media, in this process, has enhanced some of those results even though they were inaccurate.
How is the current market performing, comparing with the market in 2016 and 2017?
To have a more accurate understanding of the oversall property market, and to help market participants see through the information jungle, 18 suburbs of the metropolitan Melbourne were selected as samples. Only certain sales data were selected for each suburb and then carefully analysed. Here are some findings:
1. Melbourne’s property price centre is Toorak\South Yarra. And the central areas, which are close to Toorak\South Yarra, have shown strong market performance.
2. Those suburbs with moderate price growth history in the past are still seeing a robust property market.
3. Areas with active investment and property development activies in the past 4 years have shown moderate price correction.
4. Some middle ring suburbs, which had their property price doubled in the past 5 years, have shown moderate price correction (as much as 10%). However, those middle ring suburbs with per-squre-metre land value less than $1,200 (approx.) are still showing robust market performance.
5. The property market in outer suburbs is still strong.
An accurate diagnosis of the current market condition can always shed light on the decision making for the market participarts. For further inquiries, please contact us to book in a consulting session (http://www.realestatelogic.com.au).