We can often get caught into the trap of looking at ‘the market’ as one singular thing.
You’d be forgiven for thinking that the whole market is down and that it’s a ‘buyers paradise’ out there.
It’s also easy to view the share market as one whole. If we look deeper however we can see that some individual shares have skyrocketed over the past six months fuelled by strong demand. While overall the market has fallen, individual shares can paint a different story.
The property market also works in a similar way. The perception can be built around the entire market while the reality can be very different for each individual property.
Let me give you an example.
Looking at the Median sales data, we can see small falls overall in Melbourne. Yet being in the business, I can see examples were pricing has fallen 10 – 20% in certain segments. While other segments are holding steady or are seeing strong demand pushing price up.
Of note is areas such as Point Cook, CBD student accommodation property, homes in Balwyn North all showing varying degrees of price falls. While I’m seeing good family homes in the inner city with nothing to spend seeing prices hold steady and in some instances showing prices that are beating all previous expectations, while an unrenovated single front terrace has shown stalling interest levels.
Here’s an example of the different markets that are operating at the moment in Melbourne. It’s important to note that they are linked, yet are showing in some cases very different market performance:
- 1st Home Buyer Market
- Investment Market
- Lifestyle Property
- Coastal Property
- Family Home ( Mortgage Belt )
- Family Home ( Middle )
- Family Home ( Top End )
- Student Accommodation
- Empty Nestor Down Size
- Single/ Couple Professional
- Family / Professional Upsizing
Now in each of the above categories, you can look at the different types of stock that exist for each type:
- Single Fronted Period
- Double Fronted Period
- Modern / Townhouse
- New Homes (non period)
- Warehouse Conversation
- Art Deco Apartments
- 60’s, 70’s Apartments
- New Apartments
- Within 10km of CBD
- 10km – 20km of CBD
- Non Residential
I’ve quickly jogged these down and I’m sure I’ve missed a few. Yet each of these segments are reacting very differently at the moment. It’s important to work out the type of market you’re buying into in order to gauge demand moving forward and price.