Based on Reported Auction Results*

No Change … All Ahead And Steady As She Goes 

You’d have to be living under a rock to not know we have a healthy property market happening at present. What’s more, we think it is looking likely to continue for a while longer yet. Real estate commentaries are becoming increasingly like the daily news … repetitive; remarkably unremarkable. A steady and low-level interest rate, relatively low unemployment and more buying coming from super funds, are all helping to jolly things along. This, along with the usual assistance to momentum coming from overseas and population growth pressures. When asked how long will it continue, that is the time to politely change the subject. It’s a little like playing darts while wearing a blindfold – your guess is as good as mine … well, almost.

Established apartments in inner areas have seen some very good results. A recent client investment purchase of ours in the inner suburban belt through St Kilda and South Yarra saw very strong buying competition in the $500 to $700 thousand bracket. (We bought well, and privately on this occasion) … Multiple bidders were competing – a healthy mix of owner occupiers and investors. It’s hard to imagine that what you pay $500 to $600,000 for today, you paid about $40 to $50,000 for thirty years ago. But there you have it. If one thinks another thirty years hence, the mind boggles …. Calculators might need to be widened to accommodate the numbers! … I think if people keep asking which way prices are going, I’ll just keep answering “up”. It’s a fair bet for the future. 

Contact Renowden Buyers Advocates for your next purchase.