So what is happening in the property market, are prices really crashing?

According to CoreLogic, the median property prices in Albert Park fell by 9.6% in the last quarter, and by 9.2% in the prior quarter. With the median price in that suburb of $3.75m,that’s a fall of more than $650,000!

Property prices are based on buyer confidence and momentum. Headlines such as the above (or worse) erode confidence and buyers prefer to hold back ‘to see what happens’. Local agents say buyer enquiry is limited and depends very much on the quality of the property being offered.

A-Grade properties are selling well, it is the B and C Grade properties that are difficult to attract buyers.

Unfortunately, median property prices can give a misleading impression of the whole market, as they don’t measure the quality of those properties being sold.

Owners of rental properties across Melbourne are re-considering their property investments, especially in the light of significant increases in Land Tax, greater landlord regulation and overall increased expenses. Many are cashing in on their long-term investments.

As a general statement, rental properties are not in the same condition as those occupied by owners. They are likely to be smaller properties and therefore of lower value. Thus, an increase in ex-rental properties for sale will lower the median property price.

You should also remember that Albert Park median property prices increased by 26% in 2020 and 2021 – so you could say prices are returning after the COVID boom.

Its also of note that the median 4 bed-room house in Albert Park has actually risen 5% last year and 6% this year.

If you are thinking of selling a property which is not A-Grade, expect a tough market. It may be worthwhile to try and improve the property to make it more appealing to buyers.

There are very few property investors in the market (maybe one sale in twenty), however first home buyers are active, particularly for B Grade properties. Many are however selective in what they buy, as they prefer to move-in and not have to renovate or upgrade.

We have managed a number of properties throughout the year where we undertook cosmetic works and made the property appealing to buyers. All those properties sold at auction achieving good results. Phil and I are always happy to discuss ways to improve a property for sale.

I guess this is a long-winded way of saying statistics can be used to achieve all sorts of dramatic headlines and stories – just remember the old saying – there are lies, damned lies, and statistics! So don’t get stressed about what the media may say about property prices. If you want to know, talk to someone who is actually close to your local market.

If you’re thinking of selling or would just like some pointers, contact us for a free consultation.

Finally, I’d like to wish you all the very best for 2025 – it promises to be an exciting year!

Regards,  Robert Allanadale Director     M: 0418 517 643