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The property market of Melbourne has shown stability over the last few decades and remained quite hot till November 2017. Now the market is seeing a little steep but it won’t be crashing like other real estate markets, it will be more like a swift landing. The market has not witnessed forced sales by desperate vendors, instead, a systematic slowdown was created by the regulators to tightens the screws on lending, especially to investors.
Here, the property advisor in Melbourne is about to discuss the tips which can turn out to be very useful for the upcoming year for property investment in Melbourne.
Melbourne Property Market Prices
Over the last few years, Melbourne has seen an increment in the home values, the second-fastest pace as compare to all capital cities. The increase in auction clearance rates and discounting and time on market levels have decreased over the year, which shows the market’s potential for investors and home buyers.
Melbourne’s property prices will likely to be strengthening by its massive population growth along with the influx of nearly 35% of all overseas migrants. Melbourne now stands as one of the fastest growing cities in the developed world, with its population likely to increase in the next few years, the property market will also see a boom.
With nearly 35% of immigrants from all over the world, Melbourne city is one of the most creative and cosmopolitan city, having various and diverse industries including tourism, entertainment, commerce, hospitality, industry, and trade. This has lead to the creation of numerous jobs, over the last decade, nearly half the jobs created in Australia were created in Melbourne and Sydney.
Since the economy is flattering, the Melbourne property market is successfully creating a “wealth effect”, residents with high paying jobs are feeling wealthier with the increasing value of their homes.
What types of properties perform well in Melbourne?
Since the boom in the property market of Australia, the prices of median houses in Melbourne have nearly doubled in the previous decade, which made Melbournians invest in apartments, units, and townhouses as they once did in freestanding homes. It can be a very smart move which we will also suggest to the new investors and home buyers who are just stepping into the Melbourne property market.
Melbourne Town Houses
The townhouses have become popular as we saw an 11% increase in the number of people living in townhouses, according to the 2016 Census. It is loved by the people of Melbourne due to its modern accommodation and living close to amenities on compact blocks.
Units are a single-story building popular among small families and bachelors, who like the privacy with no one below or above, and the sole reason why it attracts a lot of investors.
Melbourne Flats / Apartments
Flats and apartments are the most common type of accommodation used by the young Melbournians, and since their high demand, they are easy to rent out, which makes them a great investment. The entry cost of apartments is lower, this is the reason why they are mostly bought by the first time home buyers.
Commercial, Retail and Industrial properties Commercial-Property
Commercial properties are not for everyday investors. Though they have many benefits but are suitable for experienced investors who carry a big portfolio, as they are significantly more yield-driven than capital-growth driven.
If you are looking to invest in the property market of Melbourne, get in touch without without investment advisor in Melbourne to get the detailed insights of the current scenarios and how you can make the most out of your investment. Reach out to 10 Properties in 10 Years at +61 452 238 490 or leave us a message at [email protected]