Consistent price growth a strong attraction

For example, a recent report by Corelogic called ‘25 Years of Housing Trends’ showed that the median price of units and apartment in Melbourne has averaged

PRICE GROWTH OF 6.6% PER YEAR

OVER THE PAST 25 YEARS!

Whilst this figure is a little below the 8.1% per year achieved by houses in Melbourne over the same period, it still shows how strong the average price growth has been in this sector.

Even more interesting was the figures exposed by this report when Corelogic looked at what would happen to price growth if it continued at the same rate for the next 25 years. It found that Melbourne’s median unit price would rise to a remarkable $2.847 million in 2043!

Obviously, there is no way to accurately forecast future price growth rates. Logic would tell us that there must inevitably be periods of strong growth and periods where prices will flatten out or even drop a little at different times over the years. That’s the way the property market works. But it does get you thinking, doesn’t it?

With that kind of thinking, though, we probably shouldn’t have been surprised by the strong result we achieved for a well-maintained villa unit in Cormac Street, Preston. Offering two bedrooms and study/nursery area, this modern single-level residence included two bathrooms and was one of just three on the block. However, few would have anticipated such a pleasing result, with a sale at $721,000 raising a few eyebrows.

As we mentioned last week, the important message from results like these is that there is still plenty of buyer activity in the local market right now and, with the official start of Spring now a little over six weeks away, conditions are looking very positive for anyone planning a sale over the next month or two.

If you need any advice or assistance on any property matter, feel free to give us a call.