Melbourne market recovery set to continue: Wakelin Property Advisory
The property market in Melbourne is expected to continue its growth over 2014, and potentially build even further, said Wakelin Property Advisory founder, Monique Sasson.
With 2013 now being seen as the 'year of recovery', with property values recouping losses seen since the 2010 peak, 2014 will further grow on this trend, said Sasson.
“We anticipate this trend to continue, and that the momentum of the last 12 months should carry the Melbourne market upwards in the first half of 2014," she said.
“There will be many Super Saturdays – weekends with a thousand-plus auctions – throughout the autumn of 2014. Nevertheless, robust demand should soak up this supply and see auction clearance rates remain at around 70%."
She notes that while a typical year will see the first "serious" auction weekends occurring in mid- to late-February, we may well see them as early as January this year.
“The greater unknown is what will happen in the second half of 2014. In large part, the trajectory of the property market will be determined by the Reserve Bank’s attitude to setting monetary policy," she said.
“It may well be the case that the RBA decides to leave interest rates steady through most of 2014. If that scenario eventuates, then expect to see Melbourne price growth in 2014 to be strong, and potentially reaching double-digits."
If growth occurs similar to that seen in Sydney, she said it would be likely to expect 25 or 50 basis points added on from the middle of the year onwards.
“Should the Reserve Bank cut rates again, then I expect this will accelerate capital growth in 2014," she said.