According to some experts, prospects are bleak for the Melbourne property market in 2013.
In an article written for a property investment news site, property investment writer Terry Rider claimed that Melbourne is suffering from an oversupply of property.
Developers are continuing to build blocks of flats in inner-city Melbourne, even though there is already an abundance of domestic apartments. Developers are also adding to the oversupply of residential properties in Melbourne's outer suburbs.
Rider explained that Australian property expos are being held in Asia by builders of high-rise units to attract buyers from Singapore and other Asian centres. The reason for this is that there is little interest coming from local buyers.
If incentive marketing in Melbourne real estate becomes established, companies may follow some of their American counterparts in using banner printing to offer property buyers cash back when they purchase a home through them.
The practices of selling residential property in other countries, and offering incentives to buyers are making it hard for those valuing to determine realistic prices for the properties on offer. This situation results in the failure of many sales.
The news is not all bad, says Ryder, as other regions of Victoria are handling their real estate markets with more understanding. Of the larger centres, Geelong presents a strong and affordable alternative to the Melbourne market.
Mildura and Warrnambool are also examples of more attractive prospects for buyers, with a good deal of spending on infrastructure, and economies with varied sources of income.
