Melbourne property values increase during first half of 2014
The rising property values across the nation isn't a surprise to anyone, especially with the official cash rate continuing to result in affordable home loans across the country. But a recent release from the Real Estate Institute of Victoria (REIV) has revealed the degree of growth that has occurred in Melbourne during the first six months of 2014, which could present a great opportunity for buying an investment property in the near future.
Victoria's capital city house prices recorded an increase of more than 7 per cent over the first half of 2014, with much of this growth being seen through the number of auctions being seen across the region. REIV Chief Executive Officer Enzo Raimondo said the number of auctions seen thus far has already eclipsed the previous auction peak seen in 2010. This level of growth is expected to continue into the future, with the official cash rate projected to remain low.
"The city has lived up to its reputation this year as Australia's auction capital. As of yesterday, we have seen 18,000 auctions held since 1 January. This is the greatest number of auctions for any first half year, easily higher than the previous record of just over 16,000 auctions in the first half year of 2010," said Mr Raimondo in a July 1 statement.
"The auction levels this year are up 30 per cent on last year - with 14,057 homes going to auction in the first six months of 2013. Buyers have retained their strong belief in purchasing property - either as owner-occupiers or as investors. Across Melbourne, buyers have taken advantage of the record low interest rates and strong market to pursue the Australian dream."
He mentioned that much of this growth was focused on what he called the "middle ring" of suburbs in Melbourne, where the auction clearance rate has risen up to around 97 per cent in some cases.
"This reflects increased demand for middle ring suburbs, as buyers seek more affordable options than inner Melbourne over the past six months," said Mr Raimondo.
Suburbs like Ashwood have seen clearance rates of 97 per cent, while Vermount South and Ashburton recorded respective clearance rates of 94 per cent and 93 per cent. Ringwood East saw an auction clearance rate of 91 per cent, with all these areas becoming popular due to their large lot sizes and proximity to public transport infrastructure - allowing for easy commuting to and from the inner city.