While recent media reports have suggested that Melbourne is currently experiencing a property boom, it is becoming increasingly apparent that this term is being applied very loosely. To many Melburnian real estate agents, the term ‘property boom’ conjures up images from the late 1980s where buyers fought tooth and nail to purchase newly released properties, at times on-selling them for a profit the next day. To be clear, we have not experienced a boom like that since. Instead what we have witnessed in the intervening years is a fairly steady upward trend since the recession of the 80s and 90s.
Melbourne is currently in a healthy growth and expansion phase fueled by an increasing population and a growing demand for quality housing. At this stage, there is no sign of this trend abating. Buyers are showing less interest in negotiating with vendors with elevated expectations, something to keep in mind for those interested in selling.