Off-market buying is on the rise.
Despite Easter having passed, there remains a scarcity of quality properties on the market across all price points. We hope this situation is temporary, possibly due to the ANZAC Day holiday.
In Albert Park, where some of our clients are seeking cottage-style homes between $1.5 to $2 million, quality stock online is scarce.
At the top end, properties priced at $8 million or more are scarce online. Some owners might consider selling off-market if the right price is offered. However, this typically indicates their lack of urgency to sell, often resulting in high price expectations.
Due to high land taxes and financial strain, there continues to be an influx of investment-grade stock on the market as landlords sell investment properties. This trend puts additional pressure on rental vacancies (already below 1%).
In the Bayside area, there's been some activity in the $3.5 to $4.5 million range, with both buying and selling picking up in the last couple of weeks. We've been successful in locating excellent properties for our clients; however, most of these transactions have occurred off-market.
Off-Market Buying.
Off-market buying has become a significant focus for Infolio, with our number of off-market transactions surpassing any other buyer’s advocate in Melbourne. Over 53% of the properties we secure for our clients are sourced through off-market channels. This trend is particularly evident in the acquisition of family homes, especially those with four or more bedrooms in sought-after areas like Bayside and Stonnington. We recently acquired three off-market family homes in Brighton East on the same street all priced between $3.8 and $4.5 million.
The rise in off-market transactions can be attributed to several factors. Firstly, many vendors are feeling uncertain about the current market conditions. Rather than subjecting themselves to the pressures and uncertainties of an on-market campaign, they prefer the discretion and control offered by selling off-market. This allows them to gauge interest and quietly negotiate directly with potential buyers.
Simultaneously, buyers are consistently missing out on high-quality family homes. Competition in this segment is intensifying as stock levels remain low, leading to properties being snapped up before they even reach the auction stage.
As a result, we are seeing an uptick in clients coming to us for assistance in finding the right property and negotiating the sale effectively. With our extensive network of real estate agent relationships, we can show our clients many properties they wouldn't have otherwise had access to and ensure they don’t miss out on the right ones.
My parting piece of advice.
If you’re looking for a family home in Bayside or Stonnington, contact us today about the off-market properties we have access to that fit your brief.
If you're a landlord thinking of selling, consider your options. If you can hold your property until interest rates start to drop, then you will see a shift in market conditions and likely an increase in the value of your property.
Contact us today for a free 15-minute discovery call.
Lauren Staley
Managing Director
Infolio Property Advisors.
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