So says the AFR:
Property experts say Melbourne property prices could be stalling after four multimillion-dollar properties failed to attract a bid in the past week.
Middle markets in Sydney and Melbourne, where properties range from between $1 million and $3 million, continue to be pushed along by investors, first home buyers and downsizers, particularly around inner-city postcodes.
But an increase in the number of sellers in Melbourne, attracted by rising prices and high clearance rates, is increasing competition and “rattling a few sale campaigns, which are not going to plan,” says Cate Bakos, a buyers’ agent.
…buyer fears about poor construction, oversupply and flammable materials continue to hold back demand, according to market specialists.
Characteristic of a very thin and vulnerable market. That said, there is little evidence of any material slowing in Melbourne yet:
I do expect the market to ease next year as the economy refuses to bounce, in part thanks to consumer doubts about apartments.
And a goodly external shock would test it, with unhappy results I’d wager.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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