Although the prices are coming down the attention of buyers looking for entry-level stock has well and truly remained on the fringe suburbs which are currently performing quite unscathed with the mid to high range properties baring the brunt of the decline.
The unfortunate flip side we are currently battling with our clients as well as reports from our Melbourne team members are that these budget-suburbs are now flush with buyers competing for entry level stock.
THE $800,000-plus MARKET HAS LOOKED TO OPEN UP SOME POTENTIAL OPPORTUNITIES.
Two major factors we have noted that are turning a lot of investors away from Melbourne’s entry level market are firstly the difficulty in competing with first home buyers who haven’t suffered the same restrictions that faces those carrying larger debts. Secondly the bargains just aren’t appearing in that market as the competing first home buyers are still incentivised through the state government with less limitations on their lending capabilities. These two factors are seeing any property sub-$600,000 only really appealing to Melbourne based first-home buyers with almost no financially driven buyers.
But we did say say it’s not all doom and gloom, so where is the sun still shining you ask?
Well it does seem true that for the investor looking for more moderate opportunities Melbourne should be put in the time-out folder. But that isn’t to say the city is dead altogether. The $800,000-plus market has looked to open up some potential opportunities.
We seem to be seeing an opportunity where properties that were valued towards $1,000,000 a year ago are now back down to $900,000 and from reports inside of Melbourne that isn’t uncommon. So if for whatever reason you feel you have to enter the Melbourne Market the good news is prices are down. But whether we have reached the plateau, we still hold quite a bit of scepticism and seem to think there may be dryer hot spots to wait out the storm.