Sydney is a hot market and we can see it in the clearance rates. There are still, good potential growth locations however some areas entered a cooling stage and soon this entire market will reach the end of the cycle. On the other hand Melbourne housing prices continue to grow, and the market has great clearance rates. Furthermore, it is still affordable to invest in high quality products in the inner city and make money.
Melbourne home was sold for $60,000 over its reserve in less than four minutes
The Sydney Morning Herald reports recently that a Melbourne home was sold for $60,000 over its reserve in less than four minutes in one of the city’s best auction weekends this year.
In Sydney we experienced another weekend with above 85 per cent, with a preliminary clearance rate of 86.9 per cent. The previous four weeks have all been above 87 per cent.
Senior economist Andrew Wilson told the Sydney Morning Herald that although Sydney was still enjoying the best auction market ever, the slightly softer result on Saturday suggested a winter slowdown is approaching. “There has been weekly record-breaking in Sydney since Easter and it seemed hitting 90 per cent would be only a matter of time, but this weekend shows that perhaps some of the heat is coming out,” he said.
Melbourne crossed the 80 per cent barrier at the weekend, a strong result given the fact that more than 1100 auctions scheduled for the weekend. “It takes some time for a cut to work its way through the system, and Melbourne, which started the year a lot slower, has really benefited,” he said.
In East Melbourne, a two-bedroom apartment with car park sold in an auction that lasted just 3½ minutes as two investors battled it out for the unit in the art deco building at 270 Clarendon St.
Paul Caine, the director of Caine Real Estate. “People are putting big money into safe property,” he said. “The pace would have left half a dozen bidders standing with their mouths open.”
Melbourne has ranked 4 times in a row, as the most livable city in the world
Although Melbourne is facing a high building rate compared to other CBD’s, the new labour party has tightened buildings approvals, and therefore supply is constrained. Population growth is massive and approximately 1,500 new migrants arrive to the inner city every week. Melbourne is expected to over take Sydney in 2056 (
In addition, Melbourne has ranked 4 times in a row, as the most livable city in the world and the housing prices continue to grow especially with premier and good quality products.
Investments is a long term process after all and if we make the right choices in the right market, without over committing and use our own affordability we can achieve great results and Melbourne is a good example for a great potential spot.