Buyer sentiment is rebounding and competition in heating up in Victoria’s property market. The latest data suggests that investor confidence is returning, encouraged by the recent interest rate cut and an improved economic outlook. For property investors, this shift signals a potential opportunity to enter the market before prices rise again.
According to the Westpac Consumer Sentiment Index, buyer confidence in Victoria jumped by 15.3% in March, following an 11% rise the previous month (Westpac, March 2024). This surge in sentiment is the strongest in the country and aligns with national trends, where home-buying confidence has reached a three-year high.
This optimism is translating into action. Auction clearance rates remain strong in Melbourne, consistently above 70% (CoreLogic, March 2024). Competitive bidding and increased buyer numbers indicate rising demand, meaning investors need to be prepared to act decisively in securing quality investment properties. REIV reported auction clearance rates at 81% for the week ending March 15th.
Melbourne’s property values have begun to rise, up 0.4% last month after 10 months of decline (CoreLogic, March 2024). While prices are still about 6% below their 2022 peak, the window to capitalise on the market’s affordability is closing (CoreLogic).
The resurgence in demand means investors who act now may secure properties before prices climb further. Investors waiting on the sidelines may find themselves priced out as competition intensifies.
Investor Strategies for the Current Market
- Leverage Interest Rate Stability – The recent rate cut has spurred confidence, and while further reductions remain insight, borrowing conditions are more favourable than they have been in over 22 months. Investors can take advantage of improved lending conditions to secure finance and lock in attractive rates (Reserve Bank of Australia, March 2024).
- Focus on High-Demand Property Types – Certain property types are seeing stronger competition. Houses in growth corridors and well-located family-friendly suburbs are attracting investor interest. Targeting areas with rental demand and potential capital growth will be key.
Investors who move quickly can benefit from lower entry prices, there are already signals that the window for securing properties at today’s values may be closing, with Melbourne’ market clearly on the upswing.
The combination of favourable lending conditions, renewed buyer confidence, and a recovering market presents an ideal environment for investors looking to build their portfolios. If you’re ready to make a move, our team are here to help – Book your obligation free Strategy Session today!
