Vendors continued inflated expectations are one of the driving forces behind the low sales volumes for owner occupied properties as most recent sales evidence indicates that values are overall remaining steady for housing. Supply of new stock appears to well exceed current demand and has been evident across all areas on the coast and particularly for units’ price over $500,000.
Perception of limited supply of rural residential properties, particularly those located close to services is expected to result in prices remaining relatively stable through the remainder of 2008 given current conditions. Average daily room rates increased by 6.04% in 2007, buoyed by strong demand in Western Australia and ACT; Landmark White has undertaken an Australia-wide analysis to identify the key elements of the results. Enact Conveyancing Brisbane makes effective and improved work for doing the process.
The accommodation market overall improved significantly during 2007 with increases in room nights available, Total vacancy at a record low of just 0.90%, this may encourage greater investment, despite rising interest rates. The latest results released by the Real Estate Institute of Victoria show the Melbourne Metropolitan residential market has performed strongly over the last 12 months, with the median house and unit price increasing by 13.82% and 15.63% respectively.
One of the main factors contributing to the improvement of the residential market has been the continued increase in demand driven by population growth. However despite these results, the market may be showing signs of softening in response to recent interest increases and current economic uncertainty, with figures for the March quarter showing a fall in median prices from the December quarter.
“The outer fringe locations are likely to show the greatest sensitivity, as these markets have generally seen stagnated growth and in some locations a decline in median prices.” Across Metropolitan Melbourne, houses are currently achieving a median of $432,500 for the March 2008 quarter, representing a decrease of 8.42% from December quarter results. While units fell by 3.90 percentage points to $370,000 during this period, following growth of 4.69% in the previous quarter.