Melbourne’s property market has been one of the strongest in the country for decades. While value growth is slowing in most capital cities, the signs suggest that the city by the bay is still a great location for investors.
We had a look at the numbers to help you understand the dynamic and exciting property market in Melbourne.
Investors are still profiting
Property investors, and specifically property flippers, are particularly prevalent in Melbourne. In fact, 6 per cent of all flippers operate in Melbourne, third only to Sydney and regional NSW, according to new research from CoreLogic.
Investors have been enjoying a spectacular run over the last two years.
These investors have been enjoying a spectacular run over the last two years. In fact, over 2017 92.6 per cent of properties bought and sold quickly, or flipped, went for more than they were purchased for. Properties held for over one year but less than two performed even better, with 93.7 per cent selling at a profit.
This indicates that there’s big money to be made flipping houses in Melbourne as it once again ranked third for percentage of resales at a profit (beaten again by Sydney and regional NSW).
The data also tells us that while average value growth in wider Melbourne may be slowing down, there are still pockets of the city where excellent capital gains can be found – if you know where to look.
Houses performing better than units
Unsurprisingly houses resell at a profit in Melbourne more often than units do. In fact, units are 10 times more likely to sell at a loss here, according to CoreLogic’s Pain and Gain report. This doesn’t mean that buying a unit or apartment is a bad idea, but it does indicate that you should be careful when doing so.
Houses might be a safer bet generally speaking, but well designed units in great locations like Brunswick, Ascot Vale and Essendon also often hold their values well. To learn more about the property market or to sell your Melbourne home, get in touch with the team at your local Brad Teal office.