“Brickbats and Bouquets – ‘All that’s Right and Wrong with Our Markets’ ”
Opinion on the Melbourne residential market….
· Areas such as the northern suburbs are experiencing a slide in demand since the expiry of the first home owners grant by the government which was a huge stimulus for growth in the area.
· There is a large supply of estate houses for sale along with developments under construction in Mernda and Craigieburn are experiencing less demand then what was originally planned for.
· In these areas there is little reason to celebrate as property prices have experienced a drop due to the lack of demand for these products ever since the incentives were taken away.
· With special finance options for first home buyers, developers have identified their target market as young couples and families looking for affordable living options.
· The Melbourne housing market has experienced a shift in development focus. For the first time there are more multi-residential developments such as townhouses, units, apartments, flats, etc being built in Melbourne instead of houses.
· Housing affordability is the main reason for this shift as people are pushed to build smaller more modest, cheaper homes.
· The transitioning mentality of the population in relation to buyer preferences is also another reason as people are developing an interest in terrace housing as it looks appealing and is essentially affordable.
· Overall the market outlook in the northern suburbs has changed due to macro influences which have put pressure on house prices and influenced demand for product in these areas.
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Thanks to Therese O’neill from Alphabroker for this summary