5 Reasons Why Autumn is a Good Time to Buy in Melbourne

Spring is traditionally viewed as the most significant time of the year in real estate.

But, if you’re looking to buy, Australia’s second biggest property season is undoubtedly autumn.

“Spring is the big time, but then the Christmas holidays come and the market tends to slow down,” says Anne Flaherty, REA Group economist.

“After everyone is back from holidays, in autumn, the market starts to pick up again.”

Buyers looking at this time often report more favourable conditions, such as more listings and less competition, which can take the pressure off the home buying journey, Flaherty adds.

This year, one market gearing up for a big autumn is inner Melbourne. Activity is expected to heat up even more than usual given the generous stamp duty concessions initiated by the Victorian Government expire in June.

And with local Melbourne agents already reporting increased sales compared to the same period in 2021, even more listings are expected to hit the market.

So, if you think city life is for you, here are the top reasons why this autumn could be the perfect time to buy.

1. There’s plenty of choice

Melbourne’s inner-city market is awash with a wide range of dwellings.

Naturally, apartments dominate, but the options on offer range from old to new and vary from affordable one-bedroom studios to super luxurious sky homes.

“There’s definitely a good selection of property in the city,” Robert Eggers, director at inner Melbourne agency Dingle Partners, says.

“You can get more than you would for the same price in the suburbs.

“There are options for the first home buyer base with some apartments starting at $300,000, but there are also some really great options for people on bigger budgets too.”

Dingle Partners recently sold this apartment with sky city views, for $970,000. Picture: realestate.com.au/sold

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2. Great stamp duty savings

Another reason Melbourne buyers should be snapping up property in autumn this year is the unprecedented stamp duty savings currently available for city homes.

On brand-new properties worth up to $1 million, buyers can get a 50% stamp duty concession and purchasers will pay no tax at all if the dwelling has been on the market for longer than 12 months. The concession can also be used in conjunction with any discounts applied by the developer of a new home, off-the-plan concessions or first home owner grants.

These incentives have been hugely successful at luring owner-occupiers into the CBD community, says Flaherty. But, she warns, “there’s only a small window of opportunity left”, with the state government offer set to end by 30 June, 2022.

3. It’s a buyer’s market

There is no doubt the market in the City of Melbourne is geared toward buying right now, with properties for sale far outnumbering prospective purchasers.

This means buyers have got room to move when negotiating price, settlement terms, developer incentives and much more, according to Flaherty.

“Melbourne is the opposite of most other markets in Australia at the moment, which I would call extreme sellers’ markets,” she says.

“This makes it a good opportunity, especially for someone who has been looking at the city as a lifestyle choice or buyers focused on affordability.”

The property market in Melbourne is ripe for choice at the moment. Picture: Getty

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4. Interest rates are low

House prices may be skyrocketing, but the cost of finance remains historically low. However, buyers banking on low rates should not wait too long.

Reserve Bank of Australia governor Philip Lowe has publicly said a rise in interest rates by the end of 2022 is possible, with many experts tipping interest rates will begin to rise in the near future. So, don’t risk missing out on fixing a low rate on a home loan.

5. The weather is perfect

House hunting is hard work. You don’t want to be schlepping around Melbourne looking at homes in the heat of summer or the cold of winter.

Autumn is an “ideal” time for property hunting, says Flaherty.

“Just like the spring season, the weather tends to be good and the gardens look nice, so it can be a really nice time to look at property.”