Real estate agency Ray White has observed a rise in the number of interstate buyers snapping up Melbourne homes at auction.
Melbourne is becoming a bargain hunting ground for interstate-based homebuyers attracted by the city’s waning median house price.
Australasia’s largest real estate company Ray White released an economic update this week showing Melbourne has a cooling housing market, along with Sydney, Canberra and Hobart.
Based on numbers from data analytics company Neoval, Melbourne’s median house price grew just 1.23 per cent, to hit $1.027m, in the 12 months to October.
That’s less than half of the 2.74 per cent it increased the 12 months to February, to reach $1.022m.
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In contrast, Perth, Adelaide and Brisbane’s “extremely strong” growth has topped 13.2 per cent in the latest 12-month period.
PropTrack statistics put Melbourne’s overall property price, incorporating houses, units and apartments, at $793,000 in October – a 1.5 per cent drop on the previous year.
And at the start of the month, PropTrack’s Home Price Index showed Melbourne’s typical apartment, townhouse and flat price fell to $606,000 in September.
This was just below the South Australian capital’s $607,000 median for the same kind of homes, within the same period.
Ray White Group chief economist Nerida Conisbee. Picture: Supplied
A crowd watches as a house in Canterbury, in Melbourne’s eastern suburbs, goes under the hammer.
Ray White Group’s chief economist Nerida Conisbee wrote in the agency’s economic report that Victoria’s economy was facing multiple challenges including signs of a potential recession and Australia’s highest property taxes.
Ms Conisbee told the Herald Sun that the state’s rising unemployment rate was one indicator of a possible future recession, although nothing was written in stone.
She said that Melbourne’s property prices could turn around when interest rate cuts kick in, likely next year – but that stagnating values weren’t not necessarily a bad thing.
“It’s a great opportunity for buyers, we are starting to see higher levels of interstate people buying through auctions, when looking at our auction data,” Ms Conisbee said.
“It is because it is quite affordable, I think people are looking at Melbourne as a good long-term hold.”
Victoria recorded a preliminary 60.8 per cent clearance rate from 612 early auction results on Saturday, with 1659 auctions expected across the state next week.
The Hawthorn house of Con Gallin went under the hammer on Saturday. Gallin ran the now-closed Prahran shop Gallin’s Musician’s Pro and formerly owned a Fishermans Bend property that was the support office for Allans Billy Hyde.
The brick clinker house features a marble-tiled entryway, an outdoor terrace with an automatic retractable awning, a four-car garage and main bedroom with an open fireplace, walk-in wardrobe and ensuite.
One of the most high profile houses to head under the hammer on the weekend was a four-bedroom Hawthorn house owned by ex-music retailer Con Gallin, who previously owned one of Australia’s largest private guitar collections worth, about $1.5m, that he sold in 2014.
The collection included instruments signed by stars like Sir Paul McCartney and Eric Clapton.
Gallin’s home passed in on a $5.5m bid.
It remained listed online with a $5.5m-$5.8m asking range, as of Saturday evening.
Kay & Burton Boroondara’s Sam Wilkinson, who is managing the sale, declined to comment.
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