Melbourne – the place to be for confident buyers
Property buying around Australia is often touted as something that many people are too afraid to get into. In fact, prices can appear so high that they put people off the purchase altogether!
That's especially the case in Sydney, where the median house price is well over the $1 million mark, according to the CoreLogic RP Data monthly indices. With prices in Australia's largest city so high, people might be looking elsewhere for their next step on the property ladder. Melbourne offers a similar lifestyle, as well as significantly more affordable property, for a start. CoreLogic states that Melbourne's median house price is $821,340 – almost $200,000 less than a Sydney property.
Property is still in high demand as a fantastic investment.
Home buyers are confident right now, and that's because of the stable market. There has been a slight downturn over the past 12 months, although that shouldn't take away from the fact that property is still in high demand as a fantastic investment.
Just how confident are home buyers in Melbourne?
On a national level, the Genworth National Homebuyer Confidence Index (HCI) was at 99.6 points coming into the start of 2016. The latest release of the HCI on March 31 shows a drop by 1.4 points to sit at 98.2, and while it's the first drop since March 2014, levels are still comparatively very strong.
Genworth suggests that it is not affordability holding new buyers back, but the accessibility of the property market. That's where a buyer's agent in Melbourne from Cohen Handler comes in handy. It's our specialty to have an eye on the market at all times and know the regions that are booming and those about to go bust. A buyer's agent can give you the confidence and expertise to make the right moves on your way up the ladder. Accessibility shouldn't be a problem for any buyer, and if you have the funds, then you shouldn't be thinking twice about purchasing.
Home buying confidence may have dropped slightly, but there are some very acceptable reasons for this change.
"The proportion of those who believe it is a good time to buy a home has fallen to 42 per cent, from 48 per cent six months ago," said Genworth Chief Commercial Officer Bridget Sakr.
"This sentiment is even more pronounced amongst investors, with those who believe it is a good time to invest in property falling by 18 per cent to 36 per cent in the same period."
While the Melbourne property market is still sitting in second place behind Sydney, could the more confident buyers among us snap up a bargain in the cultural capital of Australia?
"Speculation, fuelled by media of a housing bubble, an upcoming national election, proposed changes to negative gearing policy and recent changes in lenders' policy relating to investment loans are some of the likely drivers of this change in consumer confidence," Bridget continued.
Where is Melbourne showing strong results?
This cool little suburb is located right on the waterfront south of the CBD. On your doorstep will be the Albert Park Lake, and Residex data states that the median house price is $1,721,000. While it's well above the current median for the whole of Melbourne, the lifestyle in Albert Park could well be up your alley.
You'll feel right at home among some beautiful properties – just look at St Vincent Place South, which has the highest median house price for any street in the suburb at $4,234,316. At the other end of the scale is the fantastic Little Ogrady Street, which has a median price of $1,075,940.
Slightly further south of the CBD than Albert Park lies St Kilda, which many believe to be among the coolest and hippest suburbs in the whole country.
A house in St Kilda will set you back $1,336,000, but the more affordable properties will be closer to the $800,000 mark on Pattison Street. There's a real community feel in St Kilda and your property buying dreams could well be made a reality. Talk to a buyer's agent about your property requirements and see what the team already has waiting for you.
South Yarra is the suburb just to the east of Albert Park and offers brilliant access to Rod Laver Arena for the Australian Open tennis tournament and the Melbourne Cricket Ground for virtually all of your sporting needs.
The South Yarra median house price is a steady $1,657,000, but living so close to the CBD as well as many nearby amenities, will give you the edge on the property market for years to come.
Whether you're buying for yourself as a primary residence, holiday home or as an investment property to add to your portfolio, Melbourne is a fabulous place to buy a house. Confident buyers should be drawn to this beautiful region before the median price escalates even further, because then you'll be able to take advantage of the capital gains!
A Melbourne buyer's agent from Cohen Handler will put you in pole position with your property-buying endeavours, so get in touch.