How is the 2017 spring property market tracking?

Written by in Buying on November 2, 2017

Spring property market: a home with spring flowers in bloom

Springtime is often billed as the best time of year to sell your home, with the warmer days drawing crowds to auctions and the mood around town feeling more upbeat, thanks to the AFL Grand Final and Melbourne Cup Day celebrations.

But how is the Victorian spring property market travelling to date?

No slump in sight

Contrary to many experts’ predictions, there is no sign of a slump or market correction in Melbourne. First homebuyers finally have a better chance to get onto the property ladder in this booming market, as APRA’s tight new lending criteria for investors seeking interest-only loans comes into effect; fewer investors means less competition, and possibly less upward pressure on prices.

The Victorian Government’s stamp duty cuts for first homebuyers, which were introduced in July, should also help to ease the affordability crisis. For properties valued up to $600,000, stamp duty has been abolished for first-time purchasers, and heavily discounted for properties valued between $600,000 and $750,000.

At the same time, changes to underquoting legislation, which commenced in May this year, prohibit agents from making deceptive or misleading representations about the sale price of a property. These new laws stipulate that estimated selling prices must be reasonable, and in line with at least three comparable sales, a big win for buyers.

Notable sales for the spring property market – so far

At the top end of the market, there have been quite a few remarkable homes change hands so far this spring.

The grand residence at 60 Kerferd Road, Albert Park, which sold privately on September 14 for $6.475 million, is a prime example. Minutes from the CBD, this beautiful home is set on a spacious 700 square metre block, and boasts modern elegance behind the gorgeous turn-of-the-century façade.

60 Kerferd Road, Albert Park

60 Kerferd Road, Albert Park

In South Yarra, 16 William Street sold at auction on September 2 for $7.01 million – almost double the price it fetched when it last changed hands in 2011. Meanwhile, 136 Page Street in Middle Park fetched $6.4 million on September 9, while the winning bid for 6 Merrion Grove, Kew was $6.15 million, on September 13.

16 William Street, South Yarra,

16 William Street, South Yarra

At the other end of the spectrum, 4 Leggatt Street, Melton South sold for $407,000 at auction, while this two-bedroom apartment at 22/46 Eucalyptus Drive, Maidstone sold for $350,000 on October 13.

Bargain hunters scoping out the inner-city apartment market will be green with envy to learn that a savvy buyer has scored this 1-bedder at 17/558 Moreland Road, Brunswick West for just $237,000 on October 28, and the new owners of 22 Cassia Road, Melton are no doubt elated with their $360,000 purchase.

There’s a definite sense of optimism amongst sellers, and the numbers don’t lie—CoreLogic data reveals that in just the past week, almost 1800 auctions were held, with a clearance rate of 73 per cent.

Compare that to this time last year, when just 533 properties went under the hammer, and it’s clear that vendor confidence is at an all-time high. As these recent sales confirm, the property boom is still very much alive and well in Melbourne!

For further information on the spring property market and beyond, check out our 2020 property market predictions.