While International media reports a down market for property in Melbourne and Sydney, a closer look reveals that it is not uniform for all types of real estate. Some areas were more resilient than others last year, such as Inverloch. In fact, there has been a real boom on the high end (although less so in the mid-to-low range). Sales are impressive, if not record breaking for properties with a median sales price of $595K, and growth of 19% during 2018. The demand was strong and lenders were flexible in providing funds for buyers.

Towards the end of 2018, the lending requirements became stricter as a result of APRA regulations and the dictates of the Banking Royal Commission. Somehow, buyers have found their way around the problem and were able to purchase 209 properties. Owners and investors are celebrating the good news and are optimistic for 2019, hoping for a repeat performance.

LET'S LOOK AT THE DATA

Reports for the last 12 months show strong sales on Freda Street, Lohr and Pymble Avenue, Jazmine Court, Abbott Street, Ascot and Beaton Place, Surf Parade, Halford Street, Sandymount Avenue and Tookrak and Inverloch-Venus Bay Road among others. There were numerous sales in excess of the $1,000,000 mark ranging to a low of $360,000. Size, age and location account for the variables. Rents have gained ground with a +3.1% increase in yield and a median of $350/week.

THE SALES STORY

The sales boom continued in 2018, but it actually started five years ago. It was more aggressive over the first years, so we are now watching and waiting to see how it pans out in 2019. Lending restrictions may again be a factor as funding is a requirement for a real estate purchase. Big sales are expected so there is no telling what will happen next. Hopefully, the trend is long term. It all depends on the current buyers.

The market is specific for Inverloch, but the demographics indicate a wide range of buyers, given the sales to date. The local community boasts an extensive appeal. Two groups seem to be lead the way in sales. The locals, of course, are the principal prospects, especially those looking to stay in a popular region or move up. People want to upsize if the prices are attractive and manageable. Then there is another dimension to the market of down-sizers wanting less space and maintenance. Cosmopolitan townhouses are become viable options for this growing group, and many local developers are cashing in on the trend with block divisions and new construction. Give people what they want and they will come.

A NEW LIFESTYLE

People relocate to attain a new lifestyle, and they expect amenities and a great location. The property market is well aware of their needs and wants from metropolitan Melbourne to coastal Inverloch. Agents are looking at price patterns and the evident areas of growth on the high end. There are always weaknesses in certain sectors, the but at least the upper echelon seems quite resilient. As a result, investment looks good for the future. Time will tell.

There are buyers waiting in the wings in all categories at Inverloch and within neighbouring suburbs. Markets can vary a great deal, even in adjacent areas. Knowledge of each one is necessary to make more deals. In effect, it is a new kind of data driven real estate specialization.

The right agent can find the best type of buyer for a property in Inverloch and negotiate a successful outcome for the seller.

Data Source: AMP Pricefinder