The Melbourne property market, a perennial topic of conversation, has thrown us yet another curveball. If there’s one constant right now, it’s the sheer inconsistency of it all. Gone are the days of predictable trends; instead, we’re witnessing a fascinating divergence in buyer behaviour, particularly when it comes to property condition.
The Auction Results from the weekend paint the picture of more of the same.
On the high side
Scheduled Auctions
1498
Reported Auctions
775
Total Sold
623
Total Passed In
152
Clearance Rate
80%
On the low side
Scheduled Auctions
1330
Reported Auctions
997
Total Sold
640
Total Passed In
236
Clearance Rate
64%
The Rise of the “Move-In Ready”
What’s hot right now? Fully renovated homes, the kind where you can literally walk in, unpack your bags, and start living. These properties, regardless of price point, are flying off the market. Buyers are clearly valuing convenience and certainty in a world that feels increasingly uncertain.
The Renovation Roadblock
Conversely, the traditional “renovator’s delight” and even properties needing modest updates are languishing. The culprit? The post-COVID renovation landscape. Fears surrounding escalating material costs, labour shortages, and unpredictable timelines are making buyers hesitant to take on projects. The dream of putting your own stamp on a property is being overshadowed by the potential for budget blowouts and drawn-out construction nightmares.
Why the Shift?
Several factors are contributing to this trend:
Cost Uncertainty: Building material prices have fluctuated wildly, and labour costs have surged. Buyers are wary of committing to renovations without knowing the final price tag.
Time Constraints: Post-pandemic, many people are valuing their time more than ever. The thought of months of renovations is simply unappealing.
“Instant Gratification” Culture: We’ve become accustomed to immediate results. The desire for a ready-to-enjoy home reflects this trend.
Risk Aversion: Economic uncertainty has made buyers more risk averse.
They’re opting for the safer bet of a completed property.
What Does This Mean for Buyers and Sellers?
Sellers: If you’re selling a renovated property, now is your time to shine. Emphasize the “move-in ready” aspect and highlight the value of avoiding renovation headaches.
Buyers: If you’re considering a renovation project, do your due diligence. Get multiple quotes, factor in potential cost overruns, and be prepared for potential delays. Consider very carefully the value of a move in ready home, and the costs associated with renovating.
Investors: This market presents opportunities for those willing to take on renovations, but it requires careful planning and a realistic budget.
The Future?
Predicting the Melbourne property market is a fool’s errand. However, it’s clear that the current trend reflects a desire for stability and convenience. As the renovation landscape evolves, buyer preferences may shift again. For now, the “move-in ready” mantra reigns supreme.
Ultimately, the Melbourne property market continues to be a dynamic and ever changing landscape. Understanding these current trends is key to navigating this complex market.
