With the real estate year coming to an end it is an opportune time to reflect on what has been a very strong year for Melbourne’s residential property market. Demand has consistently outstripped supply for the majority of the year and has been particularly robust at the top end of the market. While media reports throughout the year have alluded to a “price bubble”, the majority of Australians (64.3 per cent: source Mortgage Choice) are confident that the market will continue to perform well. All the signs are that prices are stabilising rather than falling. The long summer holidays, with very little real estate activity occurring, is often a good time for people to re assess their long term property requirements and goals.
Among Marshall White’s recent sales there have been some exceptional results achieved for our vendors including on one weekend in early November when 3 properties were sold for prices in excess of $7 million. While many prices are to remain undisclosed, some noteworthy results for the month included a substantial property at 50-52 Princess St, Kew that sold for $5,730,000 after competitive bidding from 3 potential buyers took the price $405,000 above the reserve. A classic Art Deco residence at 8 Findon Ave, Caulfield North sold prior to auction for a price of $3,630,000.
The hot topic in the finance market at present is investment lending. The banks are still pricing investment lending at approximately 1 per cent higher than customers funded as owner occupiers. The differential is due to restrictions applied through APRA (Australian Prudential Regulation Authority) which is aiming to reduce the banks’ exposure to investment lending. It is important to seek expert, independent advice surrounding a multitude of lenders to ensure you achieve the most competitive offer in the market as bank restrictions vary.
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