As real estate agents, we get asked this question multiple times every day. It’s always interesting listening to different agents answer this question.
Generally speaking, agents always answer in a positive light to some degree. The problem is, the question is a vague one and generally gets a vague response.
Relatively speaking, the market is incredibly broad in its complexities from a high-end view e.g. Victoria vs Sydney or say Metro vs Rural.
However, what I find really interesting, is the many micro markets in metro Melbourne alone, and that’s not even looking at it from a pricing view. Here’s just a few examples;
- Established apartments vs off the plan apartments
- Villa units vs townhouses
- Generally speaking ‘housing’
- Land sales.
But even that is still incredibly broad there are many, many micro markets within these markets. For example, a 1930’s art deco apartment will continue to outperform a good 1970’s apartment. Performances within individual suburbs are also another example.
Anyway, let’s have a brief look at them and my opinion on how they are tracking coming into 2017.
Established Apartments – Numbers at open for inspections have generally been on the decline for the last couple of years given the extra supply. They are continuing to move, however are usually only competed for by one or two buyers at a time. Size is really important with these apartments. As is numbers in the block, type of block (boutique blocks and proximity to the CDB show better resale). Agents will always recommend purchasing these over newer apartments.
Off the Plan Apartments – From a resale perspective, we are seeing a lot of people incurring losses on these. Its imperative that if you are looking to buy an apartment off the plan, that you go into it with a view of looking to hold onto it for a decent amount of time. If you plan to or need to sell it soon after construction, be prepared to make a loss. As with established developments, the more boutique blocks can buck the trend to a degree. Either way, tread carefully whether you are looking to buy or sell.
Single Level Villa Units – these are little gems in my opinion and they generally always perform well. The reality is they suit so many demographics of buyers hence they are hot property! Buy, buy, buy!
Townhouses – They are a perfect example of the point of there being many micro markets. Townhouses with a master bedroom downstairs will usually always perform better than a townhouse with the master upstairs. Generally speaking, young families and downsizers are attracted to these properties. Downsizers consist predominantly of the 50+ demographic. They won’t look at properties with masters upstairs so you are pretty much pigeonholed into the young family market. i.e. less buyers competing for your property.
Houses – Essentially the he housing market comes down to how your suburb is performing. A good practical floor plan is really important, and the more unique, the less buyers in most cases. The housing market has appeared to be quite steady throughout 2016 however that is with a lower volume on the market compared to previous years.
Land – Also comes down to location. Great streets in good suburbs have performed very well this year, but check your zoning - some main roads have hit gold with the recent changes!
Anyway, next time you speak to an agent, ask them the question and see how they go.
As always, if we can assist with any of your property goals, feel free to give us a call anytime.
- Ben Kenyon, Sales Executive