The Advocates specialises and is experienced in property sourcing inclusive of residential and commercial property for occupancy or Investment throughout Geelong, the Bellarine Peninsula, the Surf Coast and Melbourne. We also offer clients the services of auction bidding, negotiation and vendor advocacy.
Following 2024 in the doldrums and retracting 3% in overall value the Victorian property market has found a pulse thanks to the lifesaving effects of two interest rate reductions. Strange that this state was on the verge of open-heart surgery while every other capital except perhaps Hobart were breathing freely and showing signs of good health. As predicted in my last newsletter the property market has slowly advanced but no consecutive rate cuts as predicted by the experts with one more cut likely this year. As mentioned, many times interest rate relief only appease one third of the population in the property market and so not all are celebrating.
Melbourne’s houses are experiencing stronger growth than units with homes rising 0.6% in June and 1.2% over the second quarter, while unit values increased by 0.3% monthly and 0.8% quarterly. Sales volumes have also increased, with a 4.2% rise over the year, driven by a 9.7% increase in house sales. The median house price in Melbourne is now $947,611, sitting behind Brisbane ($1.020m), while the median unit price is $617,395.
Regional home and unit increases are outperforming Melbourne Metropolitan with a quarterly increase of 1.4% against 1.2% for Melbourne Metropolitan. Geelong, the Surfcoast and the Bellarine Peninsula are on a steady path to recovery with the latter becoming one of the most popular destinations in Victoria if not Australia.
National dwelling values rose by 0.6% in July, with the rate of growth holding firm relative to the prior two months.
Just when you thought there were enough taxes to bear Independent MP Allegra Spender will be revisiting the negative gearing debate in the hope of assisting the younger generation secure a foothold on the property market. The problem with this philosophy is that less investors means fewer properties for these millennial’s to call home whilst they save.
Some interesting facts: Data to March shows the national dwelling value to household income ratio is holding at 7.9%. Annual core inflation reading is at 2.7% which is the lowest since Sept 2021.The housing component of CPI has doubled over the past 6 months due to federal and state energy rebates. Frankston North takes the prize for the strongest growth for the year in Victoria with a rise of 6% for the past 12 months. The auction clearance rate is hovering at 72% and private sales are making up one third of total sales currently. Hard to believe when 85 percent of properties are sold by private treaty outside Melbourne.
Houses and units in the city and regional areas will continue to increase in value for the foreseeable future and I believe now is a good a time as ever to consider a purchase if you are financially able and have been waiting for the right moment.
Michael Ramsay
Principal
The Advocates
REBAA
Last week I attended the REBAA (Real Estate Buyers Agents Association of Australia) conference in Melbourne. This is an association which is celebrating 25 years of operation this year and one which I am proud to be a founding member. The association was created to form a body of like minded Buyers Agents. Strict criteria of a code of ethics and a set of standards is followed as well as minimum experience of two years. Directors must me fully licensed and be covered by the appropriate professional indemnity insurance. We were spoilt for choice with guest speakers offering their expertise on property trends, AI, selling agents prospective on Buyers Agents, social media and CRM’s.
REBAA is family orientated, and members can take comfort that although we are competitors, we are all available to assist each other with mentoring and or actual buyers advocacy activities. When choosing a Buyer’s Agent, be sure to ask if they are a member of REBAA. There are over 100 companies to choose from – rebaa.com.au
Victorian Statistics
| MEDIAN HOUSE PRICE MELBOURNE | $952,000 |
| MEDIAN UNIT PRICE MELBOURNE | $621,000 |
| MEDIAN PRICE REGIONAL VICTORIA | $574,000 |
| MEDIAN UNIT PRICE REGIONAL VICTORIA | $450,000 |
| AUCTION CLEARANCE RATE | 72% |
| CASH RATE | 3.6% |
| INFLATION RATE | 2.7% |
| RENTAL VACANCY RATE | 1.8% |
From the team at The Advocates
Tip
Once a year be sure to clean your exhaust fan covers and check your central heating and air conditioning ducts for any cracks or loose joins. Hot or cool air that continually escapes into the roof or sub floor area can be costly. Also clean the filters on your electric reverse cycle air conditioners and your rangehood.
P.S.
We welcome input to our newsletters so please contact us with any experiences you’d like to share – positive or otherwise! Disclaimer: the information contained in this newsletter is based on personal opinion and experience, it should not be considered professional financial investment advice. Statistics are sourced from the REIV and RP Data