In other words, the market can price things “wrong”. Don’t focus on short-term swings in price, focus on the underlying value of your investment. “Beware the investment activity that produces applause; the great moves are usually greeted by yawns.” This is from a man who has made a fortune on companies like Apple, American Express, General Motors, UPS, Johnson & Johnson, Mastercard, and Wal-Mart…sage advice.
In general terms, property in Melbourne below $750,000 (the FHB stamp duty discount cut-out point) is highly competitive and prices are rising.
For higher prices property, in general, there are small or large discounts available to buyers and last week, a sales agent for a $1M property made the quip “well its buyers’ market isn’t it!” $750K+ property discounts on housing in Melbourne, over the last 12 months, range from an advantageous 15% to a tiny 2%. You need to know where to look to get the bargains, and what to buy. We believe people buy Melbourne real estate in 2018/19 will be will be long-term beneficiaries, buying more value than price.
Finally, SQM Research have calculated the Peak to Trough Declines (to Sept 2018) in pervious Melbourne Pauses, and it looks like most of has already occurred, in both time and price discount percentage.