The Melbourne property market is going well, with a clearance rate of 78%.

This indicating a high proportion of properties selling at auction, a sign of a strong market.

Additionally, there has been an increase in buyer sentiment, with some fear of missing out (FOMO) creeping in as house prices reach new peaks.

However, it’s important to note that the Melbourne property market is fragmented, with different areas and types of properties experiencing varying levels of demand and growth.

As mentioned previously we have multiple different markets within our property market.

We are seeing an over supply of not only low quality investment grade property but also the high end luxury apartment market, particularly in the inner suburbs and blue chip suburbs.

Some of the reasons behind this are;
1. Oversupply: there are too many apartments on the market, it leads to a surplus, making it difficult to sell them.
2. Changing buyer preferences: Shifts in buyer preferences, moving away from apartments in large developments especially post covid.
3. Economic uncertainty: Economic downturns or changes in tax laws and regulations could impact the demand for luxury apartments.
4. Maintenance and upkeep costs: Luxury apartments often come with high maintenance and upkeep costs, which can be a burden for owners.

It is always important to remember that buying an apartment can be a great lifestyle choice but they do have limited growth potential unless they have a scarcity value, this can be driven by, location, style or size.

Preferably all 3.