As of the 2011 census, Melbourne had a vast split of real estate. While most properties were detached homes, more than 10 per cent of dwelling were townhouses of semi-attached properties, while more than 15 per cent were units or apartments. It means that anyone seeking certain types of property can find what they want. But how quickly does real estate sell here?
As property continues to be a source of profit for Melburnians, many people look to make a quick buck by purchasing in growth areas and making the most of price rises driven by a lack of supply and a wealth of demand. While capital gains might not continue at this rate forever, one way you can ensure profit is by increasing the value of your home with renovations. But beyond this, which parts of our city are taking the least time to sell? Knowing this can help you understand the local market that little bit better.
Where are houses selling the fastest in Melbourne?
CoreLogic RP Data has compiled the top five suburbs in each capital city where it appears people could fast-track their property investment. These are the areas with the fewest days on market, indicating high demand for real estate.
In Melbourne, the top two suburbs for quick sales come under the Maroondah City Council jurisdiction. These are Croydon South and Kilsyth South, where the average time on market is 19 and 20 days respectively. Both of these suburbs are predominantly made up of detached homes, suggesting a strong family-oriented lifestyle.
Adding granny flats, new bedrooms or even a kitchen renovation could be good ways of quickly adding value to real estate before you make a sale.
Scoresby, Chelsea Heights and Coldstream round out the top five. If you’re looking to invest in these areas and want to see returns on your investment property quickly, working with a boutique real estate agency to renovate and then sell could be an excellent idea.
And units or apartments?
Croydon South looks to be a hot spot for selling property, as at 30 days it tops the list for the least time on the market for units. Ferntree Gully, Chelsea, Mooroolbark and Bayswater North make up the rest of the list, and could be excellent spots to seek out investment property.
Chelsea in particular has been kind to investors, with a 12.8 per cent value boost recorded in the last year. However, many of these areas have recorded less than 5 per cent growth in value over the past 12 months. This indicates that even in strong selling markets, high profits are not always accrued through capital gains. Taking this into your own hands by deciding to renovate for profit is one way to get around this.
“With home values continuing to rise and interest rates remaining low it is reasonable to expect that homes will continue to sell relatively quickly over the coming months,” stated CoreLogic RP Data’s Cameron Kusher.
While this may be the case, it’s important not to jump the gun and sell just because you can. Seeking the aid of a real estate agency service is key to making sure you get the most out of your sale. If you want to maximise profits, simply waiting for value to rise won’t be enough. Making the investment in a sound and sensible renovation will not only add to your sale price, it can also make your property stand out from the crowd.
At The Property Alchemist, we conduct the entire renovations and sale process, leaving you to sit back, relax and enjoy the profits of your investment.