Citylife

Why buyers are snapping up properties in Melbourne prior to the 1st of July as qualified  stock runs out.

With development and building costs soaring, inflation rising, rents set to soar, and new stamp duty regulations within the City of Melbourne local government area to be introduced on the 1st of July,  investors who had been thinking of buying in Melbourne in the next 6 to 12 months are now flooding certain "qualifying" apartment  projects in the City of Melbourne local government area before time runs out, and are saving up to AUD $55,000 in stamp duties.

City of Melbourne local government area above.  50%  and 100% stamp duty exemptions available on properties below $1 million in price,  until 30 June 2022 in these areas.

Australia is already in the beginning of a rental crisis with rental vacancy rates at across the country just 1% in March 2022, the lowest seen for 2 decades.

 The “Full House” sign for rental propertiess around the country is now very noticeable.

While Melbourne has lagged the rest of the country due to strict lockdowns and border controls, it is quickly catching up as vacancy tumbles.

In addition, the Victorian Government policies introduced several years ago to limit  “super towers,” impose strict height restrictions, and improve apartment design in “The World’s Most Liveable City” also reduced supply, while improving apartment and building quality.

Opportunities exist to secure top quality brand new and completed luxury apartments at basically ten year old pricing, below replacement costs at around $10K - $12k per square metre without car park and around $14k with car park, before developer incentives.

There are just 10,000 properties across Melbourne being advertised for rental in April 2022, and 200,000 new migrant visas being issued, and 160,000 students set to return, plus tens of thousands of expats, plus the "usual" young home leavers going out into the workforce, simply put, apartment supply is unlikely to be able to keep up with this demand.

For those wishing to enjoy this unprecedented opportunity, join our forthcoming webinar on the rents crisis, where we also explain the stamp duty savings.

TO QUALIFY FOR STAMP DUTY SAVINGS:

Only for properties priced under AU$1 million and for contract signed before 30 June, 2022:

• A 50% stamp duty concession is available for ALL NEW residential properties in the City of Melbourne local government area.

• A 100% full stamp duty exemption is available for new residential properties that have remained unsold for 12 months or more since completion of construction in the  City of Melbourne local government area.

 *Established areas, good infrastruture, likley to be a shortage of supply, or master planned communities.

*Some caution still needed, as potential oversupply still possible, expensive (over $15k m2) or poor infrastructure.