Melbourne market sentiment

Would love to hear your Melbourne market sentiment. Particularly for inner city.

 

I reckon the best people to comment on this are people that aren't from Melbourne. They will be able to see things more objectively than someone who has been locked at home for 3 months feeding on sensationalised news.

As someone who is invested in Melbourne but not actually there, I'm feeling bullish about it I'm forever an optimist though!

 

I have an apartment in Southbank, rent has dropped 35%

Of course sentiment is down... will only rebound once international border reopens for Melbourne

 

Op, what would be your reaction if people said the sentiment was good? Buy? And would you hold off if people said sentiment is bad?

 

I'm bullish on inner city Melbourne property (except for Southbank, Docklands and CBD). My house in Brunswick just went from $640pw to $680pw. There's been a few sales over 10m recently inner bayside..
https://www.realestate.com.au/property-house-vic-middle+park-134648706

 

Good point. I feel if I knew Melbourne was subdued a little longer, I’d feel very comfortable investing elsewhere for the time being but worried I’m going to miss some value in the purchase I literally have to make.

 

Think about what sentiment would have been in

2017 (peak)
2018 (crash)
2019 (boom)
Early 2020 (euphoria then depression)
Now (???)

How would you have acted off the sentiment? Is that what you should have done?

also what you want now in a ppor may not be what you want a few years down the track.

 

Agents opinion 1.6 to 1.85. Sale price 1 Bazillion
I say Sydney/Melbourne are in a new boom to surpass all previous booms.

 

You actually think Sydney and Melbourne will be in a long boom from now? What would cause it? Interest rates coming back at this point don’t have a huge effect:I.e. $2,500 on 1M of debt

 

I get what you’re saying. Prices actually haven’t done much in that time! Seems to be shorter and shorter booms atm

 

huge household savings, available liquid funds, less things to spend money on, historically low interest rates - yes not predicted

 

I can’t say it will continue, but prices are crazy ATM.
I’m only good at seeing the “bleeding” obvious.
I’m selling as prices have boomed.
In March I was buying as prices had bottomed.
NB I’m not selling everything, just items I feel won’t increase as dramatically in future.

 

Nobody really knows what's going to happen. We can only bet on the probability of the previous data. My bet is UP. How long, I dont know. My timeframe is 15 years.... So... is it cheap now with a 15 years horizon? I think so.

 

Huge household savings?

 

I don’t live in Melbourne but there are a lot of people in Melbourne who are looking at investing outside of Victoria, even to the point of sight unseen. Whether this is a short, medium or long term Is hard to say. One thing for sure is that the political landscape is the determining factor. Plus we are not having any immigration for a while and that will hold off population growth.
Melbourne was a great city with lots of employment opportunities, but right now I’m not feeling it.

 

What does everyone think about Melbourne's 83% clearance rate today? To note it was from a much smaller number of auctions than usual.

 

Results look positive. Ones I am tracking are basically back to boom time prices. Anything sticking out for you?

 

But things are still selling like hotcakes despite the potential headwinds you have mentioned. Imagine how crazy it would be with immigration and 200k students back in town!

Been to the cbd and bayside these past few days and the atmosphere was electric despite the poor weather. I am starting to remember the appeal of living in a place with so much variety and multiculturalism. Mentone beach, hidden gem!

 

While I could be wrong, I think that things appear electric because stock levels have been very low and people have been tied down for months.

 

I was planning on selling but pulled out just as covid was hitting Australia. Now I'm watching closely to see when to sell.