- Increase in search demand for three-bedroom dwellings
- Inner west suburbs have become highly sought after
- More buyers are looking at listings that are valued at $1 million and over
Buyer demand for property continues to rise throughout Victoria and the rest of the country. However, a new and interesting trend among residential property search results has emerged.
Gone are the days where price is the determining factor for a house purchase in Metro Victoria. It seems that location and the number of bedrooms is more important than the asking price.
This shift in purchaser mindset has been reflected through recent results from the REA Group (realestate.com.au) and other industry reports. According to insights published on 8 April by Anne Flaherty from REA, there has been an increase in user search results for three-bedroom dwellings over the past 12 months.
Furthermore, inner-city and fringe suburbs that were once overlooked, are becoming increasingly sought after, especially those that can deliver on both location and space.
My company, Compton Green, largely services the inner west of Melbourne, and has done so for the past 90 years. The west has often been viewed as ‘less appealing’ to buyers than its eastern counterparts. However, buyer demand is at an all-time high in these suburbs due to its supply and proximity to the CBD and surrounds. For example, Kingsville has seen a 10.6% median sale price change since this time last year, versus Box Hill or Toorak which has respectively seen a 0.2% increase and a 14.3% decrease.
Similar increases can be seen across other inner west suburbs, such as West Footscray (15%) and Seddon (12.8%).
So, how does price factor into this?
Well, for many buyers, it doesn’t.
The aforementioned report from Ms Flaherty showed a significant drop in ‘buy searches’ for properties listed $500,000 or under. It also showed a staggering increase in searches for properties that are listed for $1 million to $1.5 million. This accounts for 42.3% of the REA’s overall searches for the past 12 months.
Encouraged by low interest rates and the fear of ‘missing out’, buyers are setting their sights on more expensive houses. This is echoed by interest in our current $1 million plus listings; we are seeing more enquiries come through than this time last year and increased active bidders at auctions.