As the year draws to a close the heat in the Melbourne property market continues to hit record levels. With many now in a race to buy before the industry goes into hibernation over the Christmas/ New Year period family homes have continued to be in hot demand with agents advising that they are having to raise quoting ranges multiple times throughout campaigns in some cases. We have seen an increase in listings but the number of listings is still not meeting the demand in particular for family homes or villa units with a courtyard. The next two weekends are set to be Super Saturday weekends with over 2600 auctions to be held. Recently a 6 bedroom family home in St Vincents Place, Albert Park sold $1.65m above the vendors reserve for $11.15m. A three bedroom Californian bungalow sold under the hammer for $230,000 above the vendors reserve for $1.88m in 28 Dalmor Avenue, Ormond. The median unit price is now around 66% lower than the median house price in Melbourne showing the two tier market which we have continued to see over the past couple of years has only been amplified by the pandemic.
The apartment market overall has remained sluggish, there are still plenty of investors trying to off load their properties and limited buyers who are focused on being in the inner city suburbs once in hot demand to purchase them. We have seen a huge trend of younger people returning home to live with parents during the pandemic and the lower overheads have provided them a boost and the ability to extend themselves past the one bedroom apartment they would have once been able to afford.
As Melbourne continues to open up it will be interesting to watch how the market kicks off in 2022 as more vendors have confidence in listing their property for sale.