Michael Gibson on the Melbourne luxury market

Barring any major catastrophe, I expect our market will chug along in 2018. After all, factors like Victoria’s net migration, Melbourne’s ‘most liveable city’ status and low rates won’t change materially. That said, I don’t expect the type of growth we’ve had over the last three years to re-emerge. If rates are raised toward the end of next year it won’t be by much and they certainly won’t spiral upward like we saw in the late 1980s. But rates drive markets, so any move impacts sentiment. This will see vendors choose their agents more carefully and settle on more reliable, proven brands with a history and a track record.

Liz Jensen on the Southern Mornington Peninsula

Our extraordinary winter sales volume meant we had to find a lot of off-market properties, which has exhausted supply. But rates have been very low, making mortgages easier to service, and leaving buyers with more equity and happier to borrow money. Shares have also done well so people are selling them and investing in a holiday house, where they can often get more stable and sometimes better growth in an asset that’s also the perfect addition to a lifestyle investment portfolio. And with the world only getting more dangerous, people are tending to stay in Australia for holidays, where they can always retreat to their holiday house.

Darren McMullen on the rental market

I don’t think we’ll see much change next year. If the RBA announces a rate rise, it will play a role, but it will take time to see the impact. And from what I hear, there’ll be a lot more movement in the corporate space this year with other corporations set relocate to Melbourne, where they can get a lot more for their dollar. There’s also a lot of substantial developments underway in South Yarra to meet this growing demand. I think there will be a temporary issue with oversupply in apartments but Melbourne’s net migration will ensure supply meets demand sooner rather than later. And good quality properties are always in demand.


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