Low supply drives demand for Melbourne property

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Melbourne’s property market shows no signs of slowing down, with the last quarter of 2016 proving to be a boon for developers.
Two developers with projects on opposite sides of Melbourne – one in Tarneit in the west, and the other in Glen Iris in the east – have reported record-fast sales, with one project selling 30 out of 34 lots of land in just five days.
Stage one of Grace Tarneit, a new boutique estate in Melbourne’s West, was completely sold out within two weeks except for one, said LandCore director Sal Scrivano.
Meanwhile in the eastern middle ring suburb of Glen Iris, the Trentwood development in Boroondara sold 95 per cent of the 88 available residences within 10 weeks of launch – an average of 8 apartment sales per week.
The majority of sales were to owner occupiers who were priced out of the established market, or looking to downsize from their family home, said Sam Tucker, sales and marketing director, Kokoda Property.
“This indicates to us that there is sustained demand for new apartment product of a high quality nature that appeals to owner occupiers, however, due to the current planning regulations there is absolutely no way to deliver what the market needs,” Tucker said.
“There is a low supply of new apartments in Glen Iris and a strong demand for quality.”
Kokoda Property has called for more in-fill development in Melbourne’s undersupplied eastern middle-ring, in order to fill the demand for apartments and townhouse in these established suburbs. 

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