Melbourne Property News Monthly Wrap – December 2016

All done, all quiet, all finished.…..Merry Christmas!
Why 2016 was a great year for Melbourne property.

Over the first 3 weekends of December there were in excess of 3,589 auctions reported to the Real Estate Institute of Victoria (REIV). More than 2,804 sales were recorded. Approximately 785 properties passed in with 306 of those on a vendor bid. The clearance rate averaged 77.3%, up a bit on November’s 76.5%, and greatly up on last year’s December average of 67%.

2016 was defined by high clearance rates and rising values. Clearance rates held up even on super Saturdays when stock was plentiful. Home values defied the experts predictions and grew strongly all year. The Spring quarter alone boosted the median house value by 5% to a new high of $796,367, delivering an annual increase of 9.8%. Which added well to Melbourne homeowners’ net worth and security. The median for units rose in Spring also, by 6% to a new high of $472,667.

A notable emerging trend in 2016 was collaborative home selling. Two or more owners (up to 16 in one Brisbane case) get together to sell their homes to a developer. Townhouse and apartment developers are hungry for large sites and pay a premium. The activity is usually driven by one homeowner door-knocking the others and formulating a proposal. Experts estimate it can add 30% to the sale price above the value of the homes if sold separately.

One notable sale on December’s last weekend (before Christmas) was a Brighton beach box for $326,000. Small enough to turn up in someone’s Christmas stocking, but even if you went to the beach every single Summer day for 10 years in a row that would still be $360 a visit. It’s an OK beach, but not that good!

To all our clients, the Real Estate fraternity and loyal our readers, we wish you a very Happy Christmas and a terrific Summer break. See you next year!

Craig Knudsen
Principal Advisor
Vendor Marketing

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