Spring Quarterly Update
October 22, 2019
Positive Growth in the Melbourne Property Market as Spring Heats Up
The spring season in Melbourne is traditionally an incredibly vibrant time in the property sector and, so far, the real estate market in Melbourne is showing positive signs that a slight rebound is underway. With an increase in listings to meet the stronger demand the change of season typically brings, a feeling of renewed optimism amongst industry specialists is emerging cautiously—although some financial specialists forecast that the reality of tightened credit offers and the subsequent inability of many lenders to handle loan applications in a timely manner will still have an impact. Results from the first month of Spring, thanks to data from CoreLogic, revealed an auction clearance rate average of just over 70% for Melbourne, up 25% from the same time in 2018.
New Property Developments Offer Buyers Better Choice
In a market where prospective buyers are outnumbering those wanting to sell established properties, it’s a good opportunity to buy off-the-plan. In what Projects by Buxton Director Heath Thompson acknowledges is still an uncertain market, the need to invest time into careful research to help choose the best possible project to purchase within is more important than ever. ‘End-buyers need security and peace of mind that comes from knowing their developer and builder have a proven track record and will complete a project that is viable for everyone involved,’ says Heath. With some developers continuing to struggle to achieve the funding required to see overly-ambitious projects through to completion, Heath warns that investors run the real risk of putting their heart and soul (and hard-earned savings) into plans that won’t ever come to fruition.
‘For buyers, knowing how to filter the good from the bad can be challenging,” says Heath. ‘One key question to ask any development team you are considering working with is ‘have they got funding in place?’ Checking their track record to see if they have a proven history of creating successful development projects is always prudent but is still no guarantee. According to Heath, though, one long-term advantage of some developers falling by the wayside is what he says is an overdue ‘cleansing of the market’. ‘Some developers have been spoiled by a great market and they didn’t need to be very professional because there was a steady demand for whatever they were selling. Now, though, they need to up their game and they need to stand by their product,’ Heath says.
‘Buyers are more discerning and the best developers are the ones who can deliver a quality end-product, with design touches that reflect a genuine understanding of the market and the needs of the target demographic.’ Floorplans designed to suit the needs of real families, couples and professionals keen to either downsize, upsize or enter the market for the first time, need to take real people and the way they want to live their lives into consideration, rather than offering a limiting opportunity to utilise a space.
Discerning Buyers Demand Quality Property Developments
‘Would-be buyers are being more discerning about looking at the ways they can enjoy living, with convenience and comfort, in a proposed development,’ says Heath. ‘Location is still important but so is space, storage and interior design that is as beautiful as it is functional.’ The developments Projects by Buxton chooses to work on reflect the significance of these issues and the outcomes, says Heath, are meticulously-planned developments that cater perfectly to the needs of discerning buyers. ‘Successful developers need to offer products that are genuine quality,’ says Heath. ‘Anything less than great is no longer accepted by the evolving market.’