Victorian Market

November 2009

Recent auction clearance rates have been around 70% which shows strong demand however excitement is tempered somewhat as the number of properties listed for sale is well below that at the same time last year.
Moving around the suburbs it is noticeable that all agents report a lack of well priced stock and properties listed up to $500,000 in the middle ring suburbs are "running out the door"!
As always, if you can list them, you will sell them. There is no doubt now that the Government's first home buyer scheme has set the lower end of the market alight, as evidenced by the recent sales of our outer offices. Contact with an agent in Mount Martha (Mornington Peninsula) known for marketing properties in the million dollar plus range, related, that their office is now concentrating their marketing in a different section of their suburb, to lower priced homes under the $500,000 range.
With interest rates staying low for the near future we should see this trend continue.
After an indifferent start to the year Commercial property has come to the fore again as investors shun the share market and return to bricks and mortar for safety. The tightening of Bank lending for commercial projects has had a detrimental affect on selling periods and values to some degree and it is noticeable that the oversupply of factory units has seen vacancy rates expand in the Northern and Eastern industrial areas.

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