Melbourne Property News Monthly Wrap – October 2023

October offers Melbourne some of the best buying value in Australia

Over October’s first two weekends the Real Estate Industry of Victoria (REIV) recorded more than 1,616 auctions. 1,059 properties sold, 782 at auction, with 328 passed in. 276 properties were sold before auction with 1 property selling after auction. The clearance rate averaged 75%, just up on September’s 74.75%.

Why it’s a very good time right now to buy in Melbourne

Although national home values are trending upwards most suburbs in Melbourne are not. Values here lifted only 1.3% over the last quarter, and 1.5% over the last 12 months. Over the same 12 months home values rose 7.3% in Sydney, 5% in Brisbane, 5% in Adelaide and 7.3% in Perth (CoreLogic). So with price growth being so comparaitively restrained here, you can see the terrific value Melbourne offers right now. This advantage will not last. Inevitably Melbourne values will play catch up with the other capitals.

The Spring market is certainly enjoying great turnover though and Melbourne buyers are showing up at auction right across September and October. There have been more than a 1,000 auctions a week in Melbourne for five of the last seven weeks. The market stayed busy despite the referendum on Saturday the 14th. Clearance rates are running high, actually going right to 100% so far in some hotspots like leafy Blackburn North and affordable Carrum. Midrange suburb Ormond has hit 94.1% (Domain).

Good homes are busting reserves

Prime properties showed their potential to zoom past reserves last weekend when a renovated 1930’s style home in Brunswick went $350,000 above reserve to sell under the hammer at $2.65M. A Port Melbourne Beacon Cove home, opened at $2.04M and went $485,000 over reserve to sell at auction for 2.5M. It can be a better strategy to try and negotiate a buy before the auction, before competing bidders run the sale price up.

Competition for good properties is tough and to maximise your chance of securing one you need Buyer Marketing on your side. We have the skill and experience to find you your perfect property, and then negotiate the sale process to achieve the most advantageous outcome for you, the buyer.

House rents still on a 30 month roll

The rental market is making news again in October with record low vacancy rates of .08% nationally. National house rents have now increased for 30 consecutive months in a row. Sydney’s average is at $720 a week. Melbourne houses are at the most reasonable end of the scale with a $550 average and for most of this year Melbourne has been the cheapest capital city in Australia for renting a house. But now Hobart is holding the wooden spoon, at $530 a week.

Demand for dwelling rentals is so high Melbourne units are only slightly behind houses, getting an average $520 a week.

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing