The Property Market, a Ticking Clock

The property market runs in a cyclical fashion. It peaks and troughs according to supply, demand, pricing and financial regulations and never stops moving.

When there is significant demand for property and an under supply, not only does the market see prices increase, but the amount of construction and properties for sale increases to match the growing number of buyers in the market.

Eventually, when demand slows a minor correction in the market occurs, which is often a result of increased property prices and stock on the market.

With the current rate of population growth and the current supply of property coming on the market, over the next 2-3 years it is difficult to see how there could be a significant oversupply of property. Yes, there may be some correction in the market however that is typical after such a strong couple of years of growth.

If you picture the market as a clock with 1 o’clock being the bottom of the market, 6 o’clock the mid-point and 12 o’clock the top end, the market is currently sitting at about 9 o’clock.

Why? There is a lot of demand for real estate from both owner/occupiers and investors alike. In the CBD and inner-suburbs the level of infrastructure and properties on the market is matching the current high level of demand.

In the coming years, we may transition from 9 o’clock and move closer to 12. However, with APRA enforcing stricter lending criteria for investor loans, and maintaining a competitive interest rate for owner/occupiers, demand for property is likely to remain steady yet not grow at the rate it has been for the past two years.

This has the capacity to nurture the property market from 11 o’clock back around to 3 o’clock quite quickly and smoothly.

With a lot of quality real estate for sale in inner-Melbourne, now is a fantastic time to buy for those looking to capture an excellent opportunity in highly sort after pockets of inner-Melbourne.

Download our sales guide below to view our range of quality inner-Melbourne apartments for sale. 

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