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2019 Banyule market reflects cautious optimism



Tighter lending criteria has played a major role in the adjustment to Melbourne’s property market over the past six months. Investors in particular have been less active, with banks reviewing and changing lending policies in light of recent reforms to the Australian financial industry.

Fortunately, the localised market of Banyule has remained resilient to the effects of changing market conditions, in comparison to other pockets of Melbourne.  The most recent REIV reporting shows house prices in our key suburbs including Ivanhoe, Rosanna and Heidelberg remained stable, with small price fluctuations in some pockets.

The most significant impact has been to the number of properties reaching the market, overall clearance rates and general buyer activity - all of which declined over 2018.

The start of 2019, however, has been one of cautious optimism. The Miles team is witnessing a promising increase in buyer numbers at open for inspections and auctions, together with an overall stabilisation across the local market.

While things have been a little slower to start than in previous years, we get the sense that buyers and sellers are now starting to move forward again with their plans. Many properties that remained unsold at the end of last year, have now transacted and prices are reflective of the popularity of the Banyule area. Auction clearance rates are slightly up and steadying. Miles achieved an 80% auction clearance rate in mid-March, although we do not expect that to remain consistent.

In summary, we are seeing signs of positivity, and once the federal election has concluded, we anticipate both buyers and sellers moving ahead with greater confidence.

Miles was delighted to recently bring the historic 1904 home Chadwick House, at 32-24 The Eyrie, Eaglemont, to market. Painstakingly restored over 30 years, current owners are looking to take on their next restoration project next door - another pioneering home by architect Harold Desbrowe-Annear, who is responsible for introducing the first ‘open plan’ living concept in the early 1900s.


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