Buyers remain active as we enter the cooler months, seemingly undeterred by chillier weather and keen to take advantage of attractive buying opportunities. While the credit squeeze has deterred some, there’s been no marked change to buyer demographics over the past year, Melbourne’s sought after eastern suburbs continue to attract a diverse range of buyers.
“Accurately priced property is selling,” explains David Gillham, Director of Noel Jones Camberwell and acclaimed auctioneer. “We have anyone from family home buyers, upgraders and downsizers to first home buyers in the marketplace, the latter particularly active in the sub-$600,000 range due to the first home buyer stamp duty exemption.”
While there’s interest across the board, older-style villa units and art deco apartments in the $650,000 to $850,000 price range are also experiencing strong demand.
Investors have been somewhat subdued, though David suggests we could see a flurry of investor activity in the next six months depending on the outcome of the election and potential abolishment of negative gearing.
While the property market is steady in the lead up to winter, a notable trend that’s seeing some buyers miss out on their desired property is hesitancy, or the assumption they’ll get a better deal down the track. “If it’s obvious a property’s going to be passed in at auction,” suggests David, “at least make a bid to secure the right to negotiate.” He also recommends being upfront with the agent while remaining aware of one’s limits.
In the current climate of stringent lending criteria since recent changes to banks’ policies, buyers with pre-approved finance are also clearly being favoured by vendors, finance-ready buyers now in an even stronger position to negotiate.
At the same time, today’s buyers are much more educated about property values than a year or two ago, and can spot an over-priced property easily and quickly. As a result, vendors who heed their agent’s advice regarding pricing are attracting good levels of interest. Anyone postponing their sale, however, is reminded to keep property prices in perspective. Melbourne’s eastern suburbs continue to attract strong growth over time, Camberwell houses, for instance, attracting a healthy 7.53% average annual growth rate and units 5.48%, and Croydon real estate 7.19% and 7.08% respectively.
Any buyers or vendors seeking advice, assistance or support are welcome to call, visit or email any of the 10 Noel Jones offices across the eastern suburbs.
Insights from Director, David Gillham