In this weekly market update, Steven Tabban, the Director of Create Real Estate, provides valuable insights into the current state of Victoria’s property market. Despite ongoing concerns about the rental crisis and the recent rate rise by the Reserve Bank of Australia (RBA), the market remains highly active. This update highlights the increasing rental prices, dropping vacancy rates, shifting buyer demographics, and the strong performance of the auction market in Victoria.
Rental Crisis Persists:
One prominent issue in Victoria’s property market is the continuing rental crisis. Steven Tabban emphasises the sustained trend of rising rental prices and decreasing vacancy rates. Despite previous discussions on this matter, little progress has been made in addressing the rental affordability challenge.
Rate Rise and Purchasing Market:
Despite the recent rate rise implemented by the RBA, which was expected to cool off the purchasing market, the demand for properties remains high. Contrary to predictions, buyers are still entering the market with great enthusiasm. However, there has been a noticeable shift in buyer demographics, with investors taking the lead over first home buyers. First homebuyer purchases have decreased by 20% compared to the same period last year, while investors have been capitalising on this opportunity.
Unemployment Rate and Rental Prices:
The unemployment rate and rental prices play a significant role in driving investor interest in the property market. The combination of a robust job market and soaring rental prices has created an appealing environment for investors. These factors contribute to the attractiveness of property investments, making them an appealing asset class for those seeking steady returns.
Auction Clearance Rate:
The auction market in Victoria has continued to thrive, with another strong week of performance. The auction clearance rate has consistently remained below 80%, indicating high demand and competitive bidding. This trend further underscores the robust nature of Victoria’s property market and the strong interest from potential buyers.
Conclusion:
In conclusion, the current state of Victoria’s property market is characterised by a persistent rental crisis, rising rental prices, and declining vacancy rates. Despite the recent rate rise, the purchasing market remains active, with investors driving the market more than first home buyers. The auction market continues to exhibit strength, with high clearance rates. For those interested in real estate and investing, Create Real Estate encourages following their updates, liking their content, and engaging with their valuable insights.
Note: The content of this blog post has been based on the provided information and does not reflect the personal opinion or endorsement of the author or Create Real Estate.