Market Update

Crispy Christmas trees litter the back alleys, the NYE fireworks have been selfied and sent to friends, the lights are once again on in Melbourne’s better houses and the school bells are ringing, waking the market, calling it to life. Happy New Year, the Chinese Year of The Pig.

In the last forty days of 2018 Abercromby’s sold over ninety million dollars worth of residential real estate. So while it is, undeniably, a tough market, and the cries of havoc and doom from the media will continue, we have a proven methodology that outperforms the market even, and especially, in tough times. Despite the low auction clearance rates and a 20% reduction of property being offered Abercromby’s is still making it happen by selling quietly, discreetly at invitation-only auctions, and by placing buyers neatly into homes via private sale. A federal election is in the offing and while the predicted change to a Labor government and its less sanguine policies is looked upon askance by our industry, there is other good news abroad. It is predicted that given the continued growth of wealth in China – where dollar-worth per adult has quadrupled in the last half-dozen years – and the trade troubles between China and the USA, that Chinese capital will redirect into the Australian market. Chinese investors recently nominated residential property as their favorite asset, with Melbourne continuing to receive the highest share of investment.

The market will, in all likelihood, undergo a buying rush before the May Federal election with buyers hoping to get in before Labor’s purported change in legislation. However, low clearance rates at auction are expected to continue for a while yet, and we expect this to create more private sales and fewer auctions, further empowering the discreet selling methodology practiced by Abercromby’s. And despite the chorus of super-glum forecasts about falling prices, it is clear that conditions for a healthier market are combining, with new housing approvals falling and the population still rising, prices can only go one way in the fullness of time.

If you are interested in taking advantage of Abercromby’s unique, discreet sales methodology to sell your property for a market-topping price call one of our team.