Melbourne Property News Monthly Wrap – July 2024
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Busiest July for auctions in four years
Over July’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,102 auctions. 1,352 properties sold. 932 at auction, with 401 passed in. 417 properties were sold before auction & 3 properties were sold after auction. The clearance rate averaged 78.75%, up a touch on June’s 77.80%.
888 homes were reported sold by private sale through July, representing approximately 40% of all sales.
The last July with this many auctions was in 2021, when Melbourne was emerging from the destructive Covid lockdowns. At that time people were keen to make the change to more spacious homes or other lifestyle changes. According to Real Estate Institute of Victoria President Jacob Caine, this time the usual churn of home sales is boosted by a combination of new factors – like investors selling up in response to Victorian government land tax hikes and the slow-burn of higher borrowing rates.
Share houses making a comeback
New data released in July, based on CoreLogic’s newly launched ‘bedroom count metric’, shows a spike in rents for larger dwellings with four bedrooms or more. CoreLogic claims this is linked to a renewed demand for share-houses. Share-houses went out of style during the pandemic but cost of living pressures are causing a comeback. CoreLogic cites a specific 8.7% rise in rent for houses with five bedrooms or more in the last 12 months. The key fact being the average rent for a bedroom becomes cheaper the higher the number of bedrooms a dwelling has. As rents keep rising for one and two bedroom units, many renters are returning to the more economic solution of taking a bedroom in a big share-house.
Why there’s so much difference in value growth between capital cities
New data from property market analysts PropTrack indicates the level of supply of new homes in capital cities is directly linked to those cities home value growth. 651,300 immigrants came to Australia in 2023. Perth home values shot up 22.52% over the last 12 months. PropTrack claims this is largely because Perth could only provide new homes for 43% of the immigration surge there, leaving a 57% shortfall in supply, which is causing heated competition for homes. Melbourne, by comparison, built enough homes to accomodate 75% of the immigrant influx, leaving a shortfall of only 25%, therefore producing far less pressure on home values.
Getting the best sales price in July
Whenever a particular home sale exceeds expectations for the vendor it’s always worth looking closely, to see if a smart sale strategy was in action. On July’s last weekend, realestate.com.au reported how Rowville homeowners achieved 200K more than expected by having their 4 bedroom, seventeen year old home staged for the auction. A full staging is expensive, in that case costing $20,000. Spending that much isn’t for everybody, but the big result underlines the importance of terrific presentation. Vendor Marketing knows many ways to maximise your sale price. We have a raft of great tips to prepare your home for sale both inside and out, all of which help get the best possible result!
Craig Knudsen
Principal Advisor
Vendor Marketing
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