Trends in House Prices Melbourne
In the last month or so, Melbourne median housing prices have risen to $700,000 and are expected to continue to rise as the supply remains lower than the demand. What this means is that it is a good time to buy, particularly for first-time investors who are likely to see a quick return on their investment sooner than expected.
This article takes a look at what some of the Melbourne housing prices and trends are so far in 2015, and what is expected to occur within the Melbourne housing market in the next 6 months.
We will also keep you informed about what suburbs are the best to buy in with regards to investment, and examine areas, which are likely to show growth in the years ahead.
What Factors Contribute to High Pricing?
There are several interesting factors regarding the increase in prices for the Melbourne marketing. For example, there have been a large number of auctions in the first 6 months of 2015, which shows an increase in demand. This is likely due to the increase in migration and a rise in foreign investment.
Melbourne has seen tremendous growth throughout the last several years, especially with regards to inner city suburbs, which have risen by 6.2 percent. Housing prices in middle and outer suburbs are also showing steady growth with an increase of 5 percent.
Which Suburbs Should I Keep My Eyes On?
There is likely to be a very consistent return expected for the majority of suburbs in Melbourne, however there are quite a few which are growing at a more rapid pace. In fact, since the year 2000, Melbourne has seen a 15 percent growth rate each year – and 2016 is shaping up to be no different.
There are certain high development areas in Melbourne, which are outperforming their counterparts. Suburbs such as Glen Waverley, Doncaster East and Balwyn North, for example, are on track to rise 6 percent by the end of the year.
This can be attributed to the clearance rate staying over 75 percent, which is considerably boosted by inner and outer east activities.
Camberwell is another promising hotspot, due to the primary and secondary educational institutes in the region, with houses selling for much more than buyers expected. Old homes are being redeveloped and selling for above average prices that put a smile on the faces of sellers as they reinvest elsewhere.
Another option for investors is buying off-the-plan property. This is where you purchase a house or unit prior to its development and begin to transfer ownership; in which case you would need a Melbourne conveyancer to assist with the process.
If you want to find out more information about purchasing off the plan property, feel free to contact All Hours Conveyancing with any questions or enquiries that you might have about the Melbourne property market. We will be happy to answer any questions you have and shed some light on the sometimes confusing topic of fluctuating real estate prices.