In the last quarter of 2016 as we reach the traditional peak of the property market season, demand for property in Brighton and surrounding Bayside suburbs continues to reach unprecedented heights.
According to data from the Real Estate Institute of Victoria, for the last quarter, Brighton was the top growth suburb in the state, reaching a record median house price of over $2.7 million – a quarterly increase of 33.7 per cent.
This jump is well ahead of the following two highest increasing value suburbs – Moonee Ponds and Hillside, which had median prices increase 22.2 per cent and 18.8 per cent respectively.
Property sales executive at Buxton Brighton Ben Vieth attributes Brighton’s recent increase to the combination of strong demand and very low stock levels.
“Stock levels in Bayside are down 20 to 30 per cent on last year. The effect of this is higher property prices across Brighton, with consistent demand pushing prices up,” he said.
Mr Vieth noted a side effect of the value increase as something of a vendor’s “vicious cycle”.
“Current vendors want to sell their property, but there’s a shortage of property for them to buy in the area,” he said.
“We’ve seen some of the strongest results coming from new builds and land” for which, he said, listings have become very competitive.
“Last spring, we saw strong overseas investment, particularly from Chinese buyers. This was very influential on the market, and continues to be,” Mr Vieth said.
Earlier this year, the government introduced a series of overseas lending and regulatory changes, as well as a stamp duty increase for foreign investors in Victoria. The major banks followed suit, increasing their deposit limits for overseas investors.
The impact of the regulatory changes has been slow but significant – with the major change being that Chinese investors can now only purchase brand new property, not established homes.
These changes may take time to take effect, but one thing is for certain: property in Brighton continues to be highly valued and in demand.