Back to Blog

Buyer Demand Fuelling A Competitive Market

Category: Buying, Selling, Landlords

 

With our period homes, excellent schools, abundance of green spaces and numerous public transport options, it’s no wonder buyers continue to be drawn to the Bentleigh region. The early months of 2019 were challenging for buyers, with many potential vendors awaiting the outcome of the federal election before taking action. Once these properties were listed, the change in market energy was instantaneous. The momentum continued throughout last year, fuelled by interest rate cuts and pent up buyer demand. The second half of the year culminated in a very strong finish, with our office recording clearance rates above 85 per cent.

Those already living here are reluctant to give up their proximity to both the CBD and bayside beaches, so we’re seeing hot competition amongst downsizers for townhouses and single level units near public transport.

First home buyers, with their budgets boosted by the Federal Government’s First Home Loan Deposit Scheme, are also competing for these properties. Families continue to vie for homes in the prestigious McKinnon Secondary College zone, but they’re also looking keenly at homes in Bentleigh streets that fall within the Brighton Secondary College zone.

REIV data shows that the median house price for Bentleigh rose slightly in the December quarter, to $1.42 million (the Melbourne metro median house price is $860,000) and in Bentleigh East, the rise was 3.7% to a median of $1.2 million. The median price for units is sitting at $819,000 for Bentleigh and a very healthy $1.1 million for Bentleigh East, compared to a Melbourne metro median unit price of $639,000.

Owner builders and developers are competing over limited opportunities to purchase vacant land. December saw two impressive results for our office in Bentleigh East, with a 680sqm block in Jassa St selling for $1.3 million and a 581sqm block in Thomasina St selling for $1.515 million. Townhouse prices continue to climb, with outstanding results for homes within walking distance to local shopping strips. A sleek townhouse at 4 Foster Street, McKinnon was snapped up in December for $956,000. Buyers lucky enough to secure a purchase before the end of 2019 were confident they had made a sound investment, even if they had pushed their budget a little further than expected.

Our first open-for-inspections in 2020 are seeing strong attendance. All the underlying fundamentals are in place for sustainable growth in the property market throughout Bentleigh and surrounds, so we expect these buoyant conditions to continue well into 2020.

If you’re thinking of selling your property, we recommend you take advantage of the window of opportunity that currently exists. Timing is crucial if you want to take advantage of the favourable conditions for vendors.