2009 may well be remembered as the year that the residential property market defied gravity. It certainly was a year in which it proved its resilience against all expectations. The turnaround in residential property after the global financial crisis began in April and continued unabated for the rest of the year. Even when stock levels began to increase, clearance rates at auction hovered around 80% week in week out.
A snapshot of M elbourne’s residentialhousing market in 2009 reveals its underlying strength and sustained recovery.
- In the 12 months to September this year Melbourne’s median house price has risen by 8.4% according to the ABS to a record $480,000.
- Properties are selling on average in 41 days compared to 53 days a year ago.
- Vendors are discounting their prices by 5.45% compared to 7% at the same time last year
- Clearance rates at auctions in Melbourne have hovered around or over 80% since the recoverybegan in April 2009
- In 2009-10 premium suburbs are likely to see the largest price increases because they were the ones hardest hit in 2008. Prices in these suburbs are rebounding on the back of improved business confidence and share market performance.
- Melbourne’s robust residential property market can be attributed to rapid population growth and our broad economic base underpinned by a persistent shortage of housing.
- Pressure on house prices is set to continue with the HIA reporting a 13% fall in housing starts in 2009.
If you would like assistance on any property related matter please feel free to contact Marshall White on +61 3 9822 9999.
Source: Marshall White