Excellent opportunities for property investors in Melbourne: Monique Sasson Wakelin

Investor demand is strengthening for Melbourne property, according to Monique Sasson Wakelin, director of Wakelin Property Advisory, but she says there will be a great diversity in price performance across the city in 2012.

“In the Melbourne metro region demand will return for period and older-style houses in the inner north in an arch extending from Moonee Ponds to Preston,” Sasson Wakelin says in a webinar looking at prospects for 2012.

She also expects increasing demand for well-established apartments in low-rise complexes in Melbourne’s inner south east (suburbs include South Yarra, Toorak, Malvern and Armadale) and inner bayside regions (suburbs include Brighton, Black Rock, Cheltenham and Sandringham).

“These markets have proved resilient, and I expect them to continue to be so,” she says.

According to Sasson Wakelin apartments in these locations are the primary beneficiaries when first-home buyers and investors return to the market.

Also within these apartment markets, she expects demand to remain strong for two-bedroom apartments – a property class that aspirational home buyers choose when they cannot afford to buy a house or for existing home owners who are downsizing.

She says there will also be “excellent opportunities” for investors in one-bedroom apartments priced around $400,000.

“These are properties that fell between 5% and 10% last year due to the withdrawal of first-home buyers last year,” she says.

As to who is likely to buy investment properties in 2012, Wakelin Sasson says buyer interest is likely to be strong from the 50-plus age group, “many of whom are using the self-managed super funds to purchase property”

“These are investors who are transferring their wealth out of a volatile share market into residential property with a view that this is a more stable capital investment,” she says.

She points to an up-lift in recent auction activity, which suggests that the growth in buyer numbers is outstripping the growth in properties listed for sale.

“Melbourne housing is still a compelling long term investment prospect,” she says.

Overall, Wakelin Sasson expects demand to pick up on the back of tight rental vacancies, the relatively stable economy and low unemployment.

“We have a basically sound economy with improved housing affordability but a continued shortage of housing.

“Interest rates are more likely to remain stable than fall over 2012.

“The rate cuts of last year have stabilised the property market and may be sufficient to kick start the upward phase of the property market cycle,” she says.