Melbourne Property News Monthly Wrap – July 2023

Melbourne values recovering, but rents are soaring

Over July’s first three weekends the Real Estate Industry of Victoria (REIV) recorded more than 1,259 auctions. 957 properties sold, 700 at auction, with 302 passed in. 257 properties were sold before auction with 0 properties selling after auction. The clearance rate averaged 75.5% easing on June’s 79%.

The Reserve Bank’s decision on July 4 to keep interest rates at 4.1% without an increase was a relief for mortgage payers. The average variable mortgage rate is now approximately 5.9% for new owner occupier loans. A three percentage point serviceability buffer usually applies, so you must still have the means to service your loan if the mortgage rate goes up to 9%. 

But the market’s holding up well with the latest APRA data for the March quarter showing only 0.5% of home loan borrowers had fallen less than three months behind with repayments. I.E. one in every 200.

Two more great buys this month with Buyer Marketing!

2/20 Oliver Road Templestowe, in a great location, was purchased off market for $1,150,000 for a very happy client. 37b Orange Street, Bentleigh East (one of the suburb’s best streets) with 4 bed, 2 bath, 2 car parking and 287 sqm internal space, was secured for $1.65 million. The clients are over the moon with a well negotiated purchase by Buyer Marketing!

Values still creeping up

Melbourne home prices are rising gradually, or rather, recovering. A year ago there were 191 suburbs where the average house price was over one million. The REIV says that’s been reduced to 161 suburbs now (after the 13.5% value slump over 2022). The latest data from PropTrack claims 80% of Victorian suburbs gained value in the past 3 months (April to June). Up 0.7% in June alone for example. Kew is the best performer rising 12.9%. This expensive suburb is a good signaller, often showing the first signs of Melbourne market weakness, or recovery.

Record incoming immigration is still underpinning the recovery. There’s an under-supply of stock for sale and extremely tight rental availability too. 

Which buyers will I be competing with? 

Although many local property investors are bailing out and selling up, due to the State Government’s new land taxes, a new cohort of Chinese investors are arriving. Many agents report Chinese homebuyers and investors are coming back in big numbers, often targeting the eastern suburbs with high performing school zones. According to Daniel Ho, Managing Director of international real estate company Juwai IQI, “We expect Chinese investment in Australian real estate to climb at least 30% in 2023 compared to 2022.”  30% is a huge increase!

In competitive buying conditions like these, it makes all the difference when you have Buyer Marketing’s deep experience on your side. Our very effective strategies give you the best chance of locating the best possible property, then whether at auction or off-market, negotiating the best possible buy for you!

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing