There was a very interesting article by Chris Vedelago in The Age on Sunday concerning listings in Melbourne that have been hanging on the market for an extended period of time, and have subsequently dropped significantly in price. I’ve often commented how good property will sell well in any market, and it’s an adage that carries a lot of weight. Therefore, considering the catchy headline “The strange cases of the good houses that just won’t sell”, it’s worth noting in more detail why these Victorian listings in question haven’t sold, and whether we can attribute it to the current doldrums surrounding the real estate market, or if there are other factors to take into consideration.

2506/83 Queensbridge Street, Southbank, has reportedly been on the market since October 30, 2010. Listed initially at $2.15 million, the asking price has now reduced some $500,000 to $1.65 million. This property regularly features on SQM’s top 10 most discounted list. The property is a luxury penthouse apartment with a family-sized interior and views extending to Mt Martha. Situated on the border of what is now considered the world’s “most liveable city”, it’s also in an area serviced by the best amenities Melbourne has to offer – so why hasn’t it sold?

Click here for the rest of the article (Press Display Website)

Statistics are beginning to show an increase in the number of property investors taking advantage of what has widely been spruiked as a “buyer’s market”. Not only is this evident in the increased numbers of buyers lining up outside open for inspections and attending auctions, AFG (the country’s largest mortgage brokering group) reported their mortgage sales hitting an 18-month high in August – that’s some $2.7 billion, with 38% going directly to property investors. Owner-occupiers are also on the increase, and according to the ABS, they have been for the past four months. Even first-home buyers are coming back to the fold. Mortgage Choice recently reported a marked increase in first home loans making up 35% of all loan approvals in June compared with an average 27%.

Considering all the evidence points towards purchasers increasing, not decreasing, why then is turnover 20% down on this time last year and also roughly 6% lower than this time during arguably the worst period of the GFC in 2008?

Click here for the rest of the article (Property Observer Website)