Peter Rogozik Property Consulting: Your Buyers Advocate - Connecting People and Property

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Market Snapshot June 2003

The Melbourne property market is now at a very interesting stage of the cycle.After many years of exceptionally good growth there are some signs that the market is softening for certain types of properties.

Well-located properties close to village-style shopping centres,schools and public transport are still attracting strong interest and hence good prices,however other properties are struggling. We are seeing a greater number of properties pass in compared to twelve months ago.The median house price for the March 2003 quarter was $347,000-up 3.6%on the previous quarter. Annually,there has been a 9.6%increase in the median price from March 2002 to March 2003.

The bayside suburbs continue to be very popular places to invest for our clients.We are also finding a growing number of our investors purchasing in the inner west of Melbourne.These investors are taking advantage of the substantially reduced entry prices and hence buying costs. Capital gains in some of these suburbs have been as good as anywhere in Melbourne.

As for the future,we believe the property market will continue to appreciate for the remainder of the year. More confidence is coming back into the market with the completion of the war in Iraq.

The continuing under performance of the Australian and overseas equity markets,low interest rates,strong employment and a shortage of quality stock will ensure that reasonable capital growth is achieved.However,always remember that the right property must be purchased to achieve this expected growth.

 

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