PropTrack’s June home price data showed that Melbourne’s property market is finally gaining some ground with prices rising for a second consecutive month, but that is of little relevance in suburbs where sales volumes have plummeted during the last quarter.
Real estate reports have identified multiple suburbs in Victoria where sales volumes have stopped dead during the last quarter, with experts suggesting a range of potential causes.
House and/or unit sales fell substantially in Glen Waverley, Doncaster, Geelong West, Broadmeadows, Box Hill, Williamstown, Thornhill Park and Trafalgar during the last quarter, signaling a clear drop in demand for properties in those areas.
In some cases the drop is linked to poor value for money. As an example, you could pay $800,000 for a one bedroom apartment in Doncaster but just $500,000 for the same thing in Carlton.
Oversupply is another potential cause in several locations, particularly in the unit/apartment market where landlords are selling up, and in the housing market where new land releases and housing estate developments are on the rise.
Conversely, in some areas such as Geelong West it might simply be that the suburb has become tightly held, with locals reluctant to sell in a popular suburb that has consistently seen steady price growth.
And lastly, fingers point towards Victoria’s crippling tax regime as a significant barrier to buyers such as ‘mum and dad’ investors who are put off by land tax hikes, extensive rental reforms and prohibitive compliance costs.
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