Property sells in growth suburbs
The Sunday Age recenlty reported that there were large numbers of homes for sale in a range of the city’s outer suburbs.
On the face of it, this appeared concerning; however, analysis of the local market and the role of those suburbs in housing our growing population shows that it’s not the case.
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The fact is that the city has always had growth suburbs with lots of homes for sale. Forty years ago it was suburbs such as Fawkner; and today it’s the likes of Doreen.
It is remarkable just home many homes have been built and sold in those locations.
For instance, the ABS has reported that in Derrimut, Point Cook and Werribee 15,875 homes have been sold and moved into over the past decade. When contrasted with the 2,961 reported for sale, this does not sound nearly as much.
And almost the entire suburbs of Doreen and Merdna have been built in that time, with 5,581 homes added. It was reported there were 3,718 homes for sale there. However, as any resident there will tell you, 65 per cent of homes don’t have For Sale signs on them! Clearly, these numbers include the pipeline of supply to ensure the community’s housing needs can be met in an affordable manner.
The fact that two years ago The Age reported concerns that there were not enough homes for sale and now there are too many, shows nothing more than the usual development cycle in operation.
The development cycle is subject to the same rises and falls that are present in the broader real estate market.