Melbourne Property News Monthly Wrap – May 2024

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Melbourne Property News Monthly Wrap

Listings stay high through May as vendors keep coming to market

Over May’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 3,139 auctions. 1,954 properties sold. 1,406 at auction, with 632 passed in. 548 properties were sold before auction & 0 properties were sold after auction. The clearance rate averaged 76.75%, down a little on April’s 78.75%.

As we reach Winter the flow of new listings usually slows sharply but this is less pronounced this year. Over the last month Melbourne listings are up 34.8% (CoreLogic) compared with this time last year. And up 9.6% above the five-year average. It’s worth looking closer in order to understand exactly what the market is doing and why.

Why so many vendors are coming to market

Beyond the normal churn of home sales, the current high vendor activity is due to a combination of reasons.

The first reason is property price growth across the Melbourne middle market has been almost static for the last year. Prices are not inflating like most other capitals, making it a good time to sell and then buy the next home.

Prices have raced up in other cities over the last 12 months, (in WA it’s up 20%) and people know Melbourne market values will eventually shoot up too.

The dynamic shows up clearly in Western Australia’s figures, where new listings are more than -34% lower than the previous five-year average. Owners there are not selling right now to take advantage of immediate rising values.

Another factor producing high vendor activity in Melbourne, are the high property taxes driving investors to sell up and turn to other States. And also, to a lesser extent, cost of living pressures combined with higher interest rates are causing some more exposed homeowners to de-risk their balance sheets by selling up.

Where are investors going right now?

Investors are smart and hunt down value, plus value-growth prospects. Buyers and investors using to hunt for properties have often focused on Melbourne suburbs like Brighton, Toorak, South Yarra, or the Glen Waverley to Box Hill belt. But in April 2024 eight out of Australia’s ten most searched suburbs are in Adelaide (PropTrack). International investor advisors are most likely a factor in driving this.

Adelaide’s Torrens Park tops the list. It’s a leafy suburb close to private schools with a median home price of 1.35m and 12.5% annual value growth and currently ticking all the boxes for investors. The only Melbourne suburb in the top 10 most searched Australian suburbs is Middle Park, at number 10. Sydney is deemed too expensive. Although regional Springfield is at number 9.

High income renters driving rents up

Market forces are reshaping the rental environment. As the rent affordability crisis for lower income earners evolves a new factor has been exposed in data – the rise in higher income earners. Historically, these numbers were lower but are on the increase. These higher income individuals, saving for a home deposit, have higher salaries which makes it easier to meet rising rents, which excludes lower income earners from more desirable inner city rentals. (Australian Housing and Urban Research Institute 2024).

Vendor Marketing are Melbourne’s most qualified Vendor Advocates. Vendor Marketing has strategies for every stage of the process, to get a proven better sale result! Contact us today to see how we help you maximise your sale price.

Craig Knudsen
Principal Advisor
Vendor Marketing

Brought to you by Vendor Marketing – Melbourne’s most qualified vendor advocates

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