Property is also selling faster than it did in 2014, with properties selling on average in around 60% of the time they did last year.
“The survey reinforces our earlier observations of a very strong market so far in 2015,” CEO Mike McCarthy said. “Although we are not back to the peak we saw in 2010 in terms of activity, the signs all suggest we are heading in that direction.”
Of the 80 offices surveyed, half of all properties sold for more than expected, while 34% met their expected sale price.
“The fact that we are meeting or exceeding expectation in over 84% of the locations we operate in testifies to the strength of the market,” Mike said.
Top-performing areas included Melbourne’s outer east, with areas such as the City of Knox reporting 90% of properties selling above expectations, and Monash also strong at 85–90%. In the west, the city of Sunshine was on par with Monash. Only 16% of properties sold below expectations, and those reported were mostly in areas of lower demand such as the metropolitan fringe, and some smaller regional locations.
The majority of offices reported that demand was outweighing supply – a major contributor to increased prices. Demand from investors and first home buyers was equally strong, with some offices reporting that investors had returned in such strong numbers that they were pushing first home buyers out of the market. “
Continued levels of immigration and strong interest in Melbourne property from overseas buyers makes property a good long-term investment option,” Mike said. “Rental return combined with capital growth makes property a very attractive asset class.”