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Melbourne’s Property Market in 2024: Statistical Insights from Buyers Agents

Buyers Agent Melbourne

professionals are playing a crucial role in navigating the evolving property market landscape in 2024. With fluctuations influenced by economic conditions, buyer demand, and new developments, they provide data-driven strategies to help clients make informed decisions. Here’s an in-depth look at the key statistics and insights shaping Melbourne’s property market this year. Overview of Melbourne’s Property Market Performance in 2024 Median Property Prices :

As of mid-2024, the median price for houses in Melbourne stands at approximately

$950,000 , up

3%

from the previous year. This increase indicates a steady recovery post-pandemic and growing confidence among buyers. Apartments, traditionally a more affordable option, have a median price of

$610,000 , experiencing a

1.8%

rise compared to 2023. Buyers agents note that the demand for apartments is particularly strong in inner-city areas like

Southbank

and

Docklands , where young professionals are eager to live close to work and entertainment hubs.

Market Segmentation :

The market is segmented into three main categories:

inner-city ,

middle-ring , and

outer suburbs . Each of these has shown varied performance:

Inner-City : Experiencing moderate growth of around

2.5% , with continued demand for high-density living options close to amenities. Middle-Ring Suburbs : Areas like

Glen Iris ,

Camberwell , and

Essendon

show a

4% increase , driven by families seeking more space and good schooling options. Outer Suburbs : Suburbs such as

Werribee

and

Cranbourne

have seen a

5-6% growth , attributed to first-home buyers and investors looking for affordability and future development potential.

Auction Statistics and Success Rates Auction Clearance Rates :

Melbourne continues to lead as one of the busiest auction cities in Australia. The

auction clearance rate

averages around

70% , reflecting strong competition and high buyer demand despite interest rate hikes. Suburbs like

Brighton ,

Hawthorn , and

Richmond

consistently report auction clearance rates exceeding

75% , indicating these remain highly sought-after locations.

Buyers Agent Influence :

Buyers agents significantly impact auction success. Data shows that buyers represented by agents are

25% more likely

to secure properties at auction compared to those bidding without professional support. Agents utilize market insights, such as historical sale prices and clearance rate trends, to strategically guide clients on bidding tactics.

Days on Market :

The average

days on market

for properties in Melbourne is around

35 days , slightly down from

38 days

in 2023. This reduction indicates a competitive environment where well-priced properties, especially in the middle-ring suburbs, are being quickly snapped up.

Suburb-Specific Trends: Growth Hotspots in 2024 Top-Performing Suburbs :

According to recent data,

Footscray

and

Sunshine

are two of the fastest-growing areas, showing a

7% and 6.5%

increase in property values, respectively. The rise is largely due to significant infrastructure investments, such as new transport links and revitalized commercial centers. High-Growth Outer Suburbs : Suburbs in Melbourne’s west, including

Tarneit

and

Truganina , are witnessing rapid growth due to their relative affordability and future development plans, with price increases hovering around

6-7% .

Established and high-value suburbs like

Toorak ,

Malvern , and

Brighton

remain stable, with growth rates around

3-4% . These areas continue to attract high-net-worth individuals seeking proximity to the CBD, elite schools, and luxury amenities. Affordability Factors :

Buyers agents are increasingly focusing on affordability metrics, guiding clients toward suburbs where the price-to-income ratio remains favorable. Data suggests that areas like

Reservoir ,

Preston , and

Moorabbin

offer better affordability compared to other middle-ring suburbs, attracting a mix of young professionals and families.

First-Home Buyers and Affordability Statistics First-Home Buyer Trends :

Despite interest rate increases, first-home buyers make up

25%

of all property purchases in Melbourne, up from

22%

in 2023. This growth is driven by government incentives such as the

First Home Owner Grant

and stamp duty concessions for properties under specific price thresholds. Buyers agents report that first-home buyers are increasingly moving toward Melbourne’s outer suburbs, where property prices are more manageable. Suburbs like

Point Cook

and

Wyndham Vale

are popular choices, with median prices ranging between

$550,000 and $600,000 .

Interest Rate Impact :

Interest rates remain a critical factor in affordability, with current rates hovering around

4.5% . Buyers agents suggest that this has shifted buyer behavior, with more clients opting for smaller properties or fixer-uppers to stay within their budget. The data shows a

15% increase

in demand for renovation properties, as buyers look for affordable entry points into the market.

Investment Property Statistics and Rental Yields Rental Market Overview :

Melbourne’s rental market remains strong, with vacancy rates below

2.5% . The average rental yield is approximately

4.1%

for apartments and

3.6%

for houses, making Melbourne an attractive option for property investors. Suburbs like

Southbank ,

Carlton , and

Fitzroy

are particularly appealing to investors due to their high rental demand, proximity to universities, and potential for capital growth. Buyers agents report that investor clients in these areas see average annual returns of

6-7% , driven by consistent rental demand.

Foreign investors, primarily from China and Southeast Asia, account for

15%

of property purchases in the Melbourne CBD and inner suburbs. These investors typically focus on off-plan developments, aiming for long-term capital growth and rental income. Buyers agents working with international clients emphasize the importance of understanding local regulations, which have tightened to manage foreign investment levels. Economic and Policy Impacts: What’s Influencing the Market in 2024? Interest Rates and Monetary Policy :

The Reserve Bank of Australia’s decisions have kept interest rates relatively high, impacting borrowing capacity for many buyers. Buyers agents help clients understand the impact of these rates, advising on fixed versus variable rate options based on historical trends.

Government Incentives and Their Impact :

The Victorian government’s initiatives, such as grants for new homebuyers and incentives for sustainable housing, are driving specific market segments. Properties with energy-efficient features or green certifications are becoming more desirable, with a

3-4% price premium

attached to such homes. Buyers agents are increasingly steering clients toward these options, predicting that eco-friendly homes will become mainstream in the next few years.

Future Predictions: Buyers Agents’ Outlook for the Rest of 2024 Market Growth Expectations :

Based on current data, buyers agents forecast an overall

4-5%

growth in Melbourne’s property market for 2024. The prediction is based on stabilizing interest rates and continued infrastructure development, particularly in the west and north suburbs.

Suburb-Specific Forecasts :

The western corridor, including suburbs like

Melton

and

Rockbank , is expected to see the highest growth due to affordable land prices and major transport upgrades. Meanwhile, established inner suburbs are anticipated to maintain steady but slower growth as demand remains stable but constrained by supply limitations.

The Role of Technology :

Digital tools and AI-powered platforms are becoming central to the work of buyers agents. Data analytics are increasingly used to predict price trends, identify emerging hotspots, and tailor recommendations for clients. Buyers agents anticipate that these tools will enhance the accuracy of their predictions, further optimizing client success rates in an increasingly competitive market.

Conclusion Melbourne’s property market in 2024 presents a mix of opportunities and challenges for buyers. Through data-driven insights, buyers agents help clients navigate these complexities, from understanding the impact of interest rates to choosing the right suburb for investment or lifestyle needs. With the market showing steady growth and evolving buyer behaviors, the expertise of a professional

Buyers Agent

Melbourne remains invaluable for making informed and strategic property decisions.

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