News & Insights
Despite the ongoing scarcity of properties, June witnessed robust demand from potential buyers. Some vendors demonstrated reluctance to enter the market, yet auction clearance rates in Melbourne and the Mornington Peninsula consistently surpassed expectations, landing within the impressive 70-80% range.
Simultaneously, the property investment sector experienced a downturn, as prospective investors were deterred by rising interest rates and additional costs such as an increased land tax. This has led to a marked rise in rental prices, a direction we predict will persist due to the diminishing pool of rental properties on the market.
Presently, properties that are renovated or newly built are the most desired amongst buyers. The escalating expenses linked to construction and renovation are discouraging many potential buyers, making ready-to-occupy properties a preferred choice.
Despite the cooler days of June and the school holiday season, we’ve seen a steady leasing of properties. Quality family homes, especially those well-maintained and presented, are leasing quickly due to limited supply. The apartment market is strengthening, with low supply leading to an average vacancy period of 14 days, an improvement from last year’s 17 days.
Notable leasing achievements include a property at Dow St, Port Melbourne, leased at $1950 per week within 4 days, and a property at Burke Road, Balwyn, leased at $1250 per week with just 4 days of vacancy. A new property at Leopold St, South Yarra, also had an impressive result, leasing at $2900 per week after only 10 days on the market.
For assistance with leasing your home or investment property, our Property Management Team are ready to help.
The month of June witnessed the conclusion of the Covid-19 State Revenue Office Stamp Duty Waiver, compelling buyers in the $2 million plus range to act swiftly. Townhouses with lifts and spacious gardens were highly sought-after, even among those who would typically prefer apartments. Waterfront apartments attracted considerable attention, resulting in eight sales at an average price of $3 million.
Moving forward, we have an eagerly anticipated launch planned for the post-holiday period: park-fronting apartments and townhouses. Despite a lack of complete marketing materials, early sales have already begun to materialise.
Enquiries from both new and existing clients seeking pre-approval or considering refinancing remained high in June. As a result of the RBA raising the Cash Rate by 400 basis points (4.0%) since May 2022, and with banks augmenting home loan serviceability criteria (buffers), borrowing capacity has diminished. This has subsequently impacted the decision-making process for some clients on which the Marshall White Finance team continue to provide education and guidance.
Bank turnaround times leading into EOFY lengthened and will likely continue to cause delays, therefore, we recommend engaging one of our Home Lending Specialists as early as possible, whether you are buying, selling, or looking for a more favourable lending solution.
Marshall White Finance is here to provide support and guide you through the ever-changing banking environment.