Mar­ket near­ing peak

Herald Sun - Property - - MARKET WRAP - WITH PE­TER FARAGO

MEL­BOURNE’S prop­erty clock could be ap­proach­ing five min­utes to mid­night as re­searchers sug­gest the city’s real es­tate mar­ket is near­ing the top of its growth phase.

Ac­cord­ing to PRD Na­tion­wide’s Aus­tralia Eco­nomic and Prop­erty Re­port for the sec­ond half of 2015, Mel­bourne’s prop­erty mar­ket has grown 10.6 per cent year on year to Septem­ber 1, and the me­dian house price is $726,000.

CoreLogic RP Data’s lat­est Home Value In­dex, re­leased ear­lier this week, sup­ports the view that the rate of cap­i­tal growth is slow­ing, de­spite nam­ing Mel­bourne as the best­per­form­ing cap­i­tal city over the past three months.

The CoreLogic in­dex showed 3.1 per cent value growth for Mel­bourne in the past quar­ter, with a more con­ser­va­tive me­dian house price of $675,000.

The me­dian price is up 12.8 per cent year on year.

It’s the sec­ond month that Mel­bourne has had the strong­est cap­i­tal city quar­terly growth.

How­ever, the pace has slowed since Septem­ber, a sign that con­di­tions for hous­ing growth are cool­ing, CoreLogic RP Data head of re­search Tim Law­less said.

“It’s not just the fact that mort­gage rates have been re­cently raised out­side any lift in the cash rate,” Mr Law­less said.

“We’re also see­ing about a 30 per cent premium on in­vest­ment-re­lated mort­gage rates, tighter lend­ing stan­dards and bor­row­ers gen­er­ally re­quir­ing a larger de­posit.”

Mr Law­less said auc­tion clear­ance rates had been trend­ing lower since April.

Mel­bourne recorded its sec­ond sub-70 per cent clear­ance in as many weeks last week­end, when CoreLogic re­ported a pre­lim­i­nary 69.5 per cent of re­ported auc­tions were knocked down, al­though from a low vol­ume. Sell­ers at Glen Waverley ac­cepted a $2.6 mil­lion of­fer ahead of an auc­tion last week­end for a re­de­vel­op­ment or ren­o­va­tion op­por­tu­nity.

The home at 11 Char­lotte St was the most ex­pen­sive auc­tion re­sult from last week­end.

Barry Plant Monash agent Tony Ievoli ne­go­ti­ated the sale of the 730sq m prop­erty.

The vol­ume of auc­tions al­most dou­bles this week­end, with al­most 1100 sched­uled.

Buy­ers paid $2.6 mil­lion to se­cure this Glen Waverley de­vel­op­ment op­por­tu­nity prior to auc­tion last week­end.

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