Balancing Act of Melbourne’s Real Estate Sector
· Slow down in real estate sector Melbourne – reflection of past year
The breathtaking view of the locales here has made this city a global property hub. Real estate sector of the Victorian state capital has witnessed many changes in the past few years. In the year 2015, the industry has seen the building boom which brought huge money in the city’s property market. But, unfortunately, that boom didn’t long for more than a year. As the industry saw a drastic dip in the year 2016. If experts are to be believed then, the current year 2017 is also going to have a slow showdown. The realtors of the city are disappointed as they won’t get the opportunity to watch their hands full of profit.
The tricky turn of events in the same industry has created shockwave amongst the property traders. But, the budding interest of home buyers in the property market has given a boost to the real estate sector.
One of the main reasons of a slowdown in the sector is economic slow growth and loss of a job. People are thinking too much before making huge investments. This is the main cause of slow trade in this sector.
The current year and the next year will be the testing time for the property market in Melbourne. We have drawn to this conclusion, on the basis of the Housing Affordability Report published by Adelaide Bank and the Real Estate Institute of Australia.
· Predictions for the property market in the year 2017
The industry is likely to emerge from the downfall caused in the last year. Realtors, builders and marketing agents feel that the budding interest of the buyers in property especially, the residential property can bring cheers to the business. But, the apartment-styled buildings can tamper the hopes not only for the year 2017 but for 2018 as well.
The drop down in property rates has attracted foreign investors in the Melbourne city as well. Real estate experts suggest this as the best time to invest in the real estate market of Melbourne.
The city offers wonderful locations and property in the prime areas at affordable prices. Those seeking retirement in the coming year or the foreign nationals residing here permanently have got an opportunity to own space in Melbourne.
·Tips for the buyers and seller this year
A drastic dropdown in the property rates doesn’t mean that buyers should not research the market. We recommend property seekers to make a through study about the preferred locations, amenities, and rates offered by various sellers and market value of the property before making the final deal.
This slow market trend is going to stay here for more than a year. Thus, don’t push yourself for anything but the best. Research, analyse and negotiate to avail the cheapest deal.
Another reason to this plodding business is the Government’s decision of lowering the first home buyers grant from 10,000$ to 15,000 $ till 31st December 2017.
Buyers must not overlook their predefined goals for buying home at an affordable cost. Make sure that the property you are buying is close to educational institutions, shopping centers, and hospitals. Buyers must also check the transport connectivity of the area, and travel time from their work place before making the final decision.
Sellers are at the losing end of the market these days. As the rates are crumbling down and the buyers trying seal the best money saving deal. The sellers are earning nothing more than tempered hopes at the end of the day.
We suggest sellers to demand reasonable property rates and hand over the keys on finding a suitable deal. The clever decision-making sellers can only survive through this tough time. Sellers won’t adjusting to the market scenario will be losing at large.
·Will cut down in rates effects property market of Melbourne.
Recession in the property market and likely cut down in cash rate by the Reserve Bank of Australia [RBA] can impact the property market of the Melbourne city at large. If experts are to be believed then, the RBA [Reserved Bank of Australia] is likely to make cut down of 0.25 percent in the mid of the current year.
The buyer’s interest in the plush regions of the city has brought smiles back on the faces of the property agents.
But, the ‘massive multi-dwelling building boom’ can discourage the market amid the moderate profit in business for the current year.
· Melbourne offering strong competition to Sydney
Melbourne and Sydney both are the most preferred living destination of Australia. Although Sydney is ahead in race as it is an expensive and multicultural city. But, the capital city of Victoria is offering strong competition to its neighbor.
The slowdown of property sector managed to shift focus from Sydney to Melbourne. This results in the fast paced growth of Melbourne’s real estate sector in comparison to the Sydney’s property sector.
A recent survey shows that Melbourne is catching up too close to Sydney. A recent survey showcases that the Sydney has just passed the edge of property seekers the Melbourne have.
The current scenario of the real estate sector in Melbourne is facing a jeopardise situation for sellers. But, a smart move can make the realtors rich even in the cold vibe that is running through the property market here.