Homes like 427 Arthurs Seat Rd, Red Hill, have helped make the suburb Melbourne’s most in demand suburb, according to realestate.com.au data
MELBOURNE house prices will fall less than 10 per cent and could turn the corner next year.
And with three Melbourne suburbs among the nations most in demand according to the latest realestate.com.au Property Outlook, homebuyers face a shrinking window to get ahead of sellers.
The city’s median house price has already fallen 2.2 per cent since last spring, according to the October report.
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Where the Melbourne property market stands at three-quarter time
Citywide the demand for homes in Melbourne has fallen by 20 per cent, though there are still pockets with high demand.
However chief economist Nerida Conisbee said buyers might not have long to take advantage of the current conditions with sellers expected to be in a better position once the financial services Royal Commission released its final report early next year.
A Sydney-like wipe-out of up to 10 per cent was not on the cards, with Melbourne still in high demand from tenants, and having seen an 11 per cent increase in China-based searches for our property — potentially hinting at a return of international investors.
“Melbourne has a tendency to surprise on the upside,” Ms Conisbee said.
“Some commentators always expect it to follow Sydney, but that doesn’t really happen anymore.
“I think it will be flat for the next two years but after then, it is really uncertain. After surges in pricing, we tend to see flat conditions for some time and Melbourne certainly saw surges in pricing.”
A rise in international interest could benefit a shortening supply of new homes particularly in areas like Melbourne’s CBD, Carlton, Clayton and Point Cook, Ms Conisbee added.
New Real Estate Institute of Victoria president Robyn Waters backed the REA claims.
Once the state and federal elections were resolved, sellers would be more confident of their position, Ms Waters said.
“After that and once we have a further understanding of what the Reserve Bank will do, we will see that settle over the next six months,” she said.
“And then we might see a rise towards the end of next year.”
71 Park St, Middle Park, gives you an idea of what is attracting attention in Melbourne’s third most in demand suburb.
Ms Waters added that some of Melbourne’s affordable outer suburbs were defying the declining market, including Melton, Sunbury, Doreen and Pakenham.
“We know that the outer suburbs are still really strong,” Ms Waters said.
The realestate.com.au Property Outlook figures showed three Melbourne suburbs in the nations top 10 for demand, including Red Hill, fourth, Park Orchards, seventh, Middle Park, eighth.
The suburbs were ranked by number of views per property listed for sale.
The report also identified affordable hubs in the list of Melbourne’s 10 most in demand suburbs for the first time since the report began.
High in the hills to Melbourne’s east homes like 9 Brooking St, Upwey, are in high demand.
Upwey was sixth, and Gladstone Park, eighth.
Doriana Kalafatis is selling her home at 57 Lenoak St, Gladstone Park, and said after watching the local market closely she believed that there were still plenty of buyers around — though prices had softened by a few thousand dollars.
57 Lenoak St, Gladstone Park, is in the most affordable suburb to ever make Melbourne’s top ten in demand suburbs according to realestate.com.au
“It’s definitely become more popular, you tend to find young families are moving back in as well,” Ms Kalafatis said.
“I don’t know when that shift occurred, but there was an older population and now you are seeing younger families as well.”
The house will go under the hammer with Ray White Gladstone Park’s Phillip Mercieca on October 20 at 10am.
The four bedroom house has an affordable $600,000-$640,000 asking price.
MELBOURNE’S MOST IN DEMAND SUBURBS
*Source: realestate.com.au Property Outlook October