Roaring demand makes outer suburbs perfect places to sell your property
Melbourne's outer suburbs are becoming hot spots to buy property, whether to own or invest, according to the latest data from the Real Estate Institute of Victoria (REIV).
The REIV commented on the recent clearance rates in one of Australia's most popular capitals in a June 4 article. It seems selling a house in more remote areas of Melbourne is easier than it's ever been, with clearance rates hitting 90 and even 100 per cent in some places.
According to the Australian Bureau of Statistics (ABS) residential property prices having risen 10.9 per cent quarter-on-quarter to March in Melbourne, making it understandable that buyers are looking further afield for their slice of real estate.
Near perfect clearance rates found all over
A number of different areas of Melbourne have seen some of the highest auction clearance rates in the entire city. Indeed, the previous weekend saw almost every single house for sale in Camberwell, Kew, Balwyn North and Burwood East sold, while Doncaster East and Hampton reached close to 100 per cent the weekend before that, according to the REIV.
Even among areas selling substantial amounts of houses, the clearance rate is strong. Melbourne's middle ring of suburbs in the east have rates in the high 80s and above, all while selling significant numbers.
In Ashwood, 28 of 29 houses have been sold over the preceding year, leading to a clearance rate of 96.6 per cent. Wantirna has seen a similar 92.5 per cent, or 37 of 40, houses sold, while neighbouring Vermont South has hit a rate of 95.1 per cent - 39 of 41 properties. These areas' popularity is a result of their strong transportation links, easy access to good schools and relative affordability, says the REIV.
Other in-demand suburbs can be found in the south-east, bayside and the north. Even relatively remote Ferntree Gully is posting a clearance rate of 84.2 per cent.
Prices have kept up with these numbers, leaving those owners with an investment property salivating. The median price in Vermont South increased by more than 7 per cent, while Colburg North in northern Melbourne saw it rise by 14.9 per cent in the three months between December 2013 and March 2014 alone, according to REIV.
Melbourne's growth a major driver
This cyclonic activity in Melbourne, with buyers frantically buying up property in ever further suburbs, is the result of the city's intense and continued growth.
According to the Victorian Government's Plan Melbourne, the city's population of 4.3 million will almost double to 7.7 million by 2051. It will need 1.6 million new houses in the Metropolitan region by the same year to accommodate this.
The demand for property is therefore likely to continue to stay strong in the decades ahead.