After a tough year of restrictions and lockdowns, Australia’s fastest-growing capital city is set for a bumper 2021.
“Since the restrictions started to ease, the Melbourne market has gone ballistic as the pent up demand for property exploded,” said Randolph Clements, Managing Director, Raine & Horne Victoria.
“Vendors have been held back from having inspections, while buyers have been unable to attend open homes. It’s like we’ve been holding back a herd of stallions who once released, took off.”
He continued, “At the start of the year, low-interest rates had buyers and sellers primed for an active 2020. Then all plans were stopped dead by COVID.
“We had people who sold at the start of the year on 90-day contracts and then didn’t have time to buy anything. People in this situation are leading the charge for Melbourne properties.”
Mr Clements said that rapid price rises are a consequence of the pent-up demand. “We are selling properties appraised at $1.8 million a few months ago that are now selling for $2.2 million and only in a couple of days.
“This level of sales activity in Melbourne will continue in 2021 with average price growth of 8-10% a distinct possibility thanks to low-interest rates and stronger economic confidence.”
Mr Clements said the inner suburbs of Melbourne represent good value right now.
“It’s something of a contrarian view. However, the inner suburbs that have been most impacted the pandemic should start to bounce back later in 2021 and early 2022 as buyers return from regional Victoria as fears about future COVID-19 lockdowns abate as more vaccines are produced.
“It’s a case of the property wave goes out, and the wave will come back in.”