Investor exodus: Melbourne has most homes for sale since 2018, after flood of new listings in August
The city’s housing market has been flooded with thousands of new properties this month, making it the busiest August in 13 years. See how home sellers are doing at auction in live streams now.
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An investor exodus has flooded Melbourne’s housing market with more homes for sale now than any time since 2018.
The big sell off has been prompted by the Victorian government’s attacks on landlords, setting up a buyer’s paradise for spring.
It comes as new real estate figures reveal more that 11,400 homes were listed across the city with Realestate.com.au this month – the busiest August in 13 years.
To see how sales are tracking as the market heads towards spring, tune into live streams and re-watch auctions at the bottom of this story.
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With a marginal decline in home prices across the past year, and no interest rate hikes since the Reserve Bank last moved in November, first-time buyers are in the box seat.
Realestate.com.au has Australia’s largest amount of property listings, with 11.6 million visitors in July alone, adding weight to their observations.
REA Group chief executive Owen Wilson said he expected more homes to hit the market in Victoria’s capital during the warmer months.
Mr Wilson said increased listings meant more choice for buyers – and property owners were more likely to list if they had a good chance to purchase a new home.
“With more choice and potentially a bit less competition, there will be great buying,” Mr Wilson said.
“I think it’s going to be a great buying spring.”
Mr Wilson said 39 per cent of Melbourne properties sold in July belonged to landlords, the highest figure of all Australian capitals, after the Victorian government increased taxes on investment properties in January and continued to tighten rental sector regulation.
“The Victorian government has made property investment in Victoria relatively unattractive, compared to other states,” he said.
“You’ve got to remember most investors are mums and dads trying to build their family’s wealth.”
The state’s high stamp duty costs are also off-putting for investors, Mr Wilson said.
But thanks to the city’s median home price falling slightly across past months to hit $803,000 in July – with PropTrack to release August’s figures tomorrow – things look good for buyers.
“I think we’re looking at, at least, an 18-month period of very healthy conditions for both buyers and sellers,” Mr Wilson said.
Ray White chief economist Nerida Conisbee said her firm’s figures showed Melbourne had experienced a significant lift in the number of people planning to list their properties at spring’s start.
“In Victoria, there’s been a lot of additional taxes, so that’s a big factor,” Ms Conisbee said.
She noted “it looks like it’ll be a very good spring for buyers”.
Ray White’s upcoming home listings for spring stand at 1805 for Victoria and Tasmania combined, up 15.8 per cent from last year and the biggest uptick of any state or territory. It is also 106.5 per cent above where it was five years ago.
“There’s a lot of stock and also price growth is quite flat, so it’s almost an ideal time for first-time buyers right now,” she said.
Real Estate Buyers Agents Association of Australia (REBAA) Victoria state representative Luke Assigal said there was more housing stock coming onto the market in Melbourne than there had been in the past few years, but it was no secret the city was still in a bit of a “trough”.
Mr Assigal added that it was a great time for buyers especially with home values moving more slowly than many other states.
AUCTION ACTION
PropTrack senior economist Anne Flaherty said about 1103 Victorian homes would be auctioned this week, after the state recorded a 59 per cent clearance rate last week.
“While the Reserve Bank is yet to alter interest rates, moves by some of Australia’s largest lenders to lower mortgage rates for new customers will be welcome news for many buyers and should help to bolster confidence,” Ms Flaherty said.
18 ACACIA ST, BOX HILL
Despite a slow start, a five-bedroom house at 18 Acacia St, Box Hill, sold slightly above expectations on Saturday.
The 2009-built home featuring views out to the Dandenong Ranges, a 7.2-star energy rating and double garage, adjoined by a workshop and carport, was listed with a $2.1m-$2.2m price tag.
Bidding began at $2m and it took some minutes for the next few offers to be forthcoming, with the residence placed on the market at $2.18m.
The two buyers facing off to secure the abode suddenly had new competition at the $2.19m mark when a new bidder threw their hat in the ring.
The property, located in the Box Hill High School zone, soon sold for $2.22m.
McGrath’s Ripple Wu and Luna Tian had the listing.
59 MIDDLE ST, ASCOT VALE
A Victorian-era house in Ascot Vale owned by former Carlton player Dennis Armfield and wife Abby sold under the hammer.
Armfield, who played 145 games with the Blues and received the 2015 Jim Stynes Community Leadership Award, retired in 2017.
He now coaches Bacchus Marsh in the Ballarat Football League.
McDonald Upton Essendon partner Joe Zucco sold the house at 59 Middle St to Armfield almost 13 years ago, and has the listing now the couple are planning a move to Bacchus Marsh.
The renovated three-bedroom residence was listed with a $1.05m-$1.15m asking range and was inspected by more than 100 buyers.
Mr Zucco said towards the end of the auction, two bidders – a young couple and a buyer’s advocate – were left competing for the keys.
“There was a good crowd, a few first-home buyers were interested in the range but once it hit $1.1m we lost them,” Mr Zucco said.
The buyer’s advocate prevailed, purchasing the house for $1.165m on behalf of investor clients from NSW.
EARLIER IN THE WEEK
A Ray White office in Melbourne’s northwest held two in-room auction events on Tuesday and Wednesday, during which more than $12m worth of property was sold.
Ray White Taylors Lakes’ principal Peter Travlos said the events saw 18 properties in suburbs including Taylors Lakes, Taylors Hill, Sydenham, Hillside, Fraser Rise and Keilor Downs – located across both the Brimbank and Melton municipalities – go under the hammer.
Wednesday’s event achieved an overall 80 per cent clearance rate, with total sales reaching $8,198,500.
More than 30 bidders contested the night’s various auctions, with a five-bedroom house at 93 City Vista Court, Fraser Rise, achieving the top result of $1.385m.
The Tuesday evening event sold a total $4.562m in property, with 20 bidders taking part in different auctions.
The top sale was a four-bedroom house at 8 Cooper Court, Delahey, which fetched $766,000.
Mr Travlos said seven of the eight homes that went under the hammer on Tuesday sold.
“In the Brimbank area, realistically-priced properties are quickly snapped up by the first homebuyer and investor,” Mr Travlos said.
He added that on Wednesday, two to three properties sold “significantly above buyer expectations”.
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Originally published as Investor exodus: Melbourne has most homes for sale since 2018, after flood of new listings in August
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