REIV State of the Market Update
State of the Market 2013 Update
REIV State of the Market Update
Thank you to Enzo Raimondo, CEO of the REIV ( Real Estate Institute of Victoria) for presenting his ” State of the Market” for the Buyers Agent Breakfast last Wednesday. Held at The Boulevard in Studley Park, the event was well attended. Over forty five members if the Buyers Agent Chapter interest group attended and quite a few guests, mostly from the lending and accountancy professions.
Backed with extensive REIV research, Enzo covered many topics including :
Consumer sentiment and how the property market sentiment is aligned with this. He also showed us graphs indicating that both are currently on the rise.
Consumer sentiment started to improve in August 2012 and the residential real estate market around October 2012. That may have been the bottom of the market cycle?
The Melbourne wide residential vacancy rate is currently 3% and has risen after adjusting figures to include new properties just being settled. (data supplied by REIV)
Residential rents are not showing the same growth they have in the past, mostly due to increasing supply of new properties
The year to date clearance rate for Melbourne auctions is 69% in 2013, compared with 62% in 2012 and a robust 87% back in 2010. (data supplied by REIV)
Over 30 years transaction rates peaked in 2007 at around 110,000 transactions compared with approximately 70,000 last year.
The REIV state of the market update was followed by a lively question and answer session, with much discussion of topical issues between attendees and Enzo. There were opportunities for attendees to make suggestions on how the REIV could improve data collection and reporting. For example, my business would benefit from having rental medians broken up in to 1 bedroom, 2 bedroom and 3 bedroom flats and units, not just the median for all flats and units.
Yields are important to investors and they need to know more detail when making important investment decisions.
This breakfast is an annual event for the REIV Buyers Agent Chapter and you are welcome to attend next March if interested. Contact the REIV for details and costs.
For up to date information on what’s happening in real estate in Melbourne, contact Janet at jspencer@buyersolutions.com.au or 0418 101 146.
Buying property, Events/Presentations, Investment property, State of the market
+61 39816 8555