The second half of 2019 across Melbourne, and in particular our key inner north neighbourhoods, ended on a ‘bullish’ high. This was underpinned by strong buyer demand and limited property supply.
The December quarter saw a significant shift in price across the board as buyers competed for the limited number of properties on the market. For example, Carlton jumped a huge 54.3 per cent increase in median house price to $1.75 million from the previous quarter’s median of $1.134 million. This is fast approaching Carlton’s historical median peak of $2.02 million in December 2018. As a comparison, Melbourne’s median price for the December quarter was $860,000.
Other suburbs such as Carlton North, Kensington, Essendon, Fitzroy and Brunswick have all seen a significant increase in value over the last quarter of 2019.
While 2019 saw around 30 per cent less properties hit the market, we expect that to balance out again as supply reach usual levels in 2020. We have already experienced an increase in listings for the start of the year, reflecting a feeling of confidence among sellers. Properties in the $1.5 - $2 million range have seen the greatest buyer interest, and results, in recent months.
The apartment market has remained steady with smaller incremental changes over the last 12 months. Continued buoyancy in this sector was no doubt influenced by tougher lending criteria, which has eased somewhat over the past quarter enabling buyers to compete in higher price brackets.
While demand still exceeds supply, we would encourage vendors to be responsive to the early 2020 market conditions that may not last all year. Timing - together with an innovative marketing campaign – can play a part in a successful result.