VIC Melbourne is hot 2022

Consumer sentiment is cratering across the country and a majority of Australians expect a recession. And with interest rates rising, few want to go into debt. Investors will be the active buyers the next few years.

 

You wlong.... the some of the brains trust will buy within 3-6 months at the bottom.

 

yeah - count me in the brain trust mob...

I suspect the nervous ones at the start of the downward cycle would be the best to negotiate with and especially around a quick settlement.

My thinking is that the fear of the unknown and the uncertainty plays havoc with those that are over exposed and normally appears in the early days of the downturn and that makes deals quite appetising - albeit I am not buying any standalone resi prop anymore - just for commercial or where a dev project is about to be foreclosed..

 

OK... I guess brain rot has set in then....

Typically best commercial properties come after the carnage...oh well... horses for courses.

 

Picking bottoms?

 

Yes they are picking dinglebeeries

 

I think you are giving the general pop too much credit. If a family is looking for a PPOR that they can grab that is say sub 800k and you cannot build the same property for that price currently , that its self will still be strong demand. As long as they are on solid income.

 

Some people will try

 

I just had 18 properties come up in my saved search for Melbourne (Ivanhoe, Camberwell, Kew, Eaglemont).

That is the most I can remember in the last 12 months. Is anyone else seeing an influx of property coming online in their areas?

 

I have a search that covers all property in 13 inner east suburbs (only crossover with you is camberwell), showing 800 results. It's normally around 1000

Another for glen iris specifically, 105 results and normally 130 or so

 

LOL - popular areas as I have a similar search as well. Although mine probably extends out to the middle suburbs too.

 

128 Green Street, Ivanhoe, Vic 3079
https://www.realestate.com.au/property-house-vic-ivanhoe-139320687

Listed for auction 26/5 $1.7-1.775m
Passed in
Private sale at $1.699m
Private sale at $1.599m
Under offer
Private sale $1.499m

16% drop in a month and Ivanhoe is a good suburb

 

Vendors were dreamers listing within original range $1.7mill+. Even at peak prices this seems a little high for what it is.

Still rough considering they paid $1.48mill back in 2017

 

Not rough.. brutal..

Copping losses on 5 yr old prices even with all the growth during covid. Feel sorry for the vendors but you can't win against the raging sentiment which is on the nose...

In hindsight, this could perhaps be a good result if this pace of deceleration in values continues - might be worth a lot less in another 6 months.

 

What are you implying…reduction in listings? I’d imagine quite a few are languishing too with no buyers.

 

Seems like the type of property one should be making an offer on?

 

Melb never had the big covid boom. The inner east boomed up to 2017/18 and has not seen much growth since.

 

notice inferior properties coming to market

 

Yep 100%. All the garbage is being offloaded which will only accelerate paper drops

 

This is why it will be interesting to watch how much these areas fall over the next eighteen months to two years and subsequently rise in the next upwards wave.

My house in inner/middle ring north did boom.