Market Report
Property Market Report: August 2024
5 August 2024
by Dee Pajevikj
Bear or bird? In this, the coldest Victorian winter for decades, do you hibernate or migrate? There are plenty of Melburnians in both camps, either they’ve flown to Japan to go skiing, or to Paris to watch our athletes… or are on the sofa with the heater cranked up cursing the price of gas.
However, despite fleeing this greyest of winters, people still have their minds on the market. Listings for spring sales keep pouring in, meaning the coming months will be full of activity as the real estate scene is enlivened by the return of the canny midwinter absentees.
At Abercrombys we have experienced that off-market sales are still strong, buyers are still present, though auctions may not be their preferred platform for purchase in winter’s depths. Our discreet marketing methodology is perfectly suited to this type of sale and we are achieving rewarding results.
The continual discussion around interest rates, and the endless prophesying – whereby two perfectly respectable economists will simultaneously predict a rise and a fall – has given pause to some investors. However at Abercrombys we’ve noticed most investors seem tired of this din and are willing and eager to get on with it. There will always be talk. A shark must swim to stay alive and the media must talk for the same reason. In the end the market ignores the talk and moves onward and upward, as always.
If Melbourne hasn’t enjoyed the same growth as other capitals in the last eighteen months, then this has created a space for real, substantial market advance in 2025.
The winter solstice was way back in the first half of June. The days are lengthening and the mood of the town lightening, soon the puffer jackets will be stowed and out will come the sunnies and beautiful young folk will sit outside cafes drinking Aperol in the strengthening sunshine. And the Melbourne real estate market’s love affair with spring will have begun again.
Eager buyers are out there, and have recently listed a selection of gorgeous properties for sale, the majority of which properties we will sell privately and discreetly, using our unique marketing methodology. A prospective property buyer would be imprudent not to contact one of our experienced sales agents. A prospective seller would be negligent.
Vacancy rates typically rise during the winter months in Melbourne, and have this year – but by a barely measurable amount. They remain at an all-time low with renters still frustrated by a lack of options. Spending money on an investment property and becoming a lessor has never made more sense than right now.
The executive rental market is generally softer during winter than at other times, and is at present. Offsetting this, the demand for one and two-bedroom apartments has remained high.
Rental properties tend to stay on the market longer in winter than the rest of the year. And while vacancies aren’t a problem for lessors in the current climate, rental providers should remember that maintaining their properties in good condition will reduce vacancy periods and amplify returns. A small investment in upkeep will usually pay for itself many times over in rent. It’s correct to think of maintenance as an investment, not a cost.