Demand outstrips supply in select Melbourne suburbs: Buyers' agent
While speculation continues about the Melbourne market being both oversupplied and overvalued, some estate agents are reporting stock shortages in key suburbs, with demand outstripping current supply, particularly for well-located houses.
Buyers should remember that property is an individual proposition and that they should take into consideration the micro-economic factors and specific qualities of the area and property they are considering for purchase, according to buyers’ agent Greville Pabst.
“The sweeping generalisations made by some commentators about Australia’s property markets can have a powerful impact on sentiment and therefore on buyer confidence,” he says.
“As the weather improved Melbourne property markets saw a welcome jump in buyer activity at the weekend’s auctions, pushing the city’s clearance rate to 60%, according to the REIV.
“The renewed confidence from some buyer groups is a positive sign in the lead-up to spring, with a ripple effect expected to create further activity as more buyers follow the lead back to the marketplace.
“However, some scepticism remains about the market returning to full swing in spring, with predictions of only a slight rise in weekly clearance rates to mid-60% during the traditionally busy season,” he suggests.
The suburbs consist of mostly inner-eastern suburbs including East Melbourne, Richmond, Hawthorn and Hawthorn East, Armadale, Toorak and South Yarra. Brunswick was another.
“A quick review reveals that all these suburbs, with the exception of South Yarra [which had one], haven’t had even a single new listing in the last week.
“The shortage in listings is unlikely to improve in the next fortnight in light of the AFL grand final, which is scheduled for October 1.
“This is because a typical auction campaign lasts approximately four weeks.
“While listings for these properties should increase in mid-September there may be a slight lull again four weeks out from the Melbourne’s Spring Racing Carnival,” Pabst predicts.
