MELBOURNE residential real estate prices will increase in the short to medium term, according to JPP Buyer Advocates.
Director Ian James said the snapper season just beginning and property sales in
James said investors, who for the first time in seven years saw, dramatic falls in their share portfolios are starting to look at adding direct property to spread the risk and owner occupiers who have remained out of the market earlier this year will begin searching again.
“The clearance rate of 68% doesn’t really mean too much whilst the auction numbers still make up less than half of the total sales.
“We need to watch overall sales. 996 sales from auctions and private sale means we are holding in the total sales numbers. Excluding last weekend, over the past five weeks there has been an average of just over 1000 properties per week sold in the
Also James said tenants who simply cannot get rental accommodation in their preferred locations will down grade their expectations and look to buy.
To put it simply, James said demand will exceed supply in the Melbourne Metropolitan area.
“This will have an upward effect on property prices that will increase over the coming years.
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“With all these factors leading to a “chronic” shortage, the simplistic rules of supply and demand will most likely prevail,” he continued.
“Even if property prices don’t start to gradually climb, the shortage of stock will compound and create another market similar to that, which we saw in 2007. If you have not bought prior to this time, you will miss out on very valuable growth,” he concluded.
Australian Property Journal