Despite being labelled the property underdog, Melbourne is actually doing quite well, WBP Senior Residential Advisers’ Sean Thomson said.
So far this year, Melbourne has held 5,500 auctions, marginally above the 5,300 held to this time in 2010. While the clearance rate is lower, most of the properties passed in at auction have been successfully sold later.
“What we’re witnessing is a textbook case of quality properties finding a buyer and compromised properties being left at the altar," Mr Thomson said.
“It is a good time to be a buyer, as most auctions are selling close to their reserve. But we’re also seeing a lower quality of property being offered compared to last year. Any property that isn’t correctly priced is not selling on the day.
“In our current market buyers need to be selective. In these conditions, investors who believe they are getting a bargain are likely to be sorely disappointed with the performance of their asset in the years to come.”