How is Melbourne’s market faring following the latest lockdown?
It’s been a tumultuous month since we last brought you news, with a lockdown having ended and our lives returning to a new normal once again. Now we’re seeing other parts of the country in lockdowns.
In Melbourne the real estate market has fully adapted to COVID restrictions, with the market continuing to move during lockdown and agents able to switch back into online-only inspections and auctions. While some auction properties were withdrawn, we saw high auction numbers at the start of the lockdown and we’re now back over 1400 auctions this past weekend, according to CoreLogic - with some reporting it was the second busiest auction week of the year - with a clearance rate over 70% at the time of writing. This past weekend was busy as buyers rushed to get in before stamp duty discounts end on June 30 for existing homes under $1 million, and stamp duty rates rise for properties priced over $2 million.
Now restrictions have eased further in Victoria, with no limits on travel around the state, we expect the market to continue to be strong. In-person auctions and inspections are permitted so long as the ‘one person per four square metre’ rule applies.
If you’re looking to buy in the current environment, my research shows three property types are best positioned to make the most of the post-lockdown market:
• (Some) family homes, particularly in middle-ring suburbs
• Generation X apartments – that is, the humble inner suburban apartment
• Regional homes – the right properties in the two biggest regional cities, Geelong and Ballarat, have ‘Melbourne-like’ growth and good yields
For property owners, you may be interested in the free hot water upgrades on offer in Victoria. You can upgrade to an energy efficient hot water system for free through the Victorian Government’s Energy Upgrades Program (VEU), potentially saving you thousands of dollars in installation, as well as through running costs. To apply, click here: https://www.freehotwaterupgrade.com.au
If you need expert advice or help – whether you’re buying or selling - Property Mavens is here to guide you through the property market. To talk to a qualified and highly regarded buyers’ agent or seller’s advocate, contact us today.
How has the end of JobKeeper affected the property market?
Many commentators predicted that when JobKeeper finished at the end of March this year the property market would be detrimentally impacted, or even ‘fall off a cliff. The reason for this was that people may be unable to keep their properties due to a lack of income, and buyers may be unable to purchase for the same reason. Has that happened? In a nutshell, we can say the answer is no.
Nationally property values have continued to rise in the months since March, albeit at a marginally slower rate than the 32-year high of 2.8% recorded in that month. The most recent CoreLogic data shows property values were up by 2.2% over May, which was a stronger result than April when values rose by 1.8%. In Melbourne dwelling values rose by 1.8% over May and are up 5.5% over the quarter. Demand for homes continues to be very strong, with quality properties seeing very strong buyer competition.
It’s now expected that national growth will moderate around the end of this year, particularly as more vendors feel confident enough to put their properties on the market, which will meet demand. Affordability will also slow the market, with prices having risen, as well as the potential for interest rate rises.
An experienced and expert buyers’ agent such as Property Mavens can provide advice and help buyers and sellers to navigate any market and choose the right properties. If you are a buyer or seller that needs assistance, contact us today for an obligation-free discussion.
Why do you need a buyer's agent?
Georgia and Shelley came to us with a very specific budget and quirky brief. They wanted to buy a family home with development potential in Melbourne’s inner city suburb of Fitzroy North – which was to be their first property in Victoria - but they needed help, so they engaged our Melbourne buyers' agent services.
We were able to successfully purchase this fantastic and unique property, a 5-bedroom, 1-bathroom home in Fitzroy North, which is a highly-contested, competitive market. The property was on the market for the first time since 1955 and it was in mostly original condition, so it had renovation potential.
What’s more in that we secured the property on Georgia and Shelley’s behalf under their budget, via a Zoom auction with 11 registered bidders during Melbourne’s last COVID lockdown.
In total, the pair went through an 18-month Covid19 rollercoaster journey to find the perfect property, but after engaging Property Mavens services, we found the right home for them.
If you want help to identify an investment-grade property like this one, whether it’s a family home or an investment property, click here to book a time with us to discuss your requirements. It’s 100% obligation-free.
Why do you need a vendor's advocate?
After deciding to sell his 2bedroom, 2-bathroom family home, Wutti sought out our expert Vendor Advocacy advice to support and guide him throughout his sales journey.
After we determined which three agents best suited his needs, Wutti selected his preferred agent and the sales and marketing process for his property kicked off.
The result was a negotiated price of $10,000 over the appraised range, to our vendor’s delight! The property was sold via a private sale, with competition from multiple buyers, which drove up the price.
If you would like help to secure a fantastic outcome like this one, whether it’s selling a family home or an investment property, and you’re ready to get started, click here to book a time to discuss your requirements. It’s 100% obligation free.
We had already worked with Miranda as a buyers advocate (in her owner-occupied and investment property portfolio), purchasing properties in both the Ballarat and Melbourne markets, when she re-engaged our services to buy her a fourth property.
This time the brief was to buy a property to add to her portfolio for capital growth, with the ability to add value via a cosmetic update, while also delivering a strong yield. We purchased a 3-bedroom, 2-bathroom plus internal studio, house in Melbourne’s Preston, around 10 kilometres north of the CBD, on Miranda’s behalf.
Miranda paid $700,000 for this property in May 2017, paying market value at the time with a high yield of 5% for a metropolitan property. But the great news story is that she has seen a whopping 40% growth in the property value in just four years – averaging growth of 10% per year - with the property now worth $980,000!
As professional property buyers we know the difference between a bad property and a good one, where to buy to generate the strongest returns, how to buy to secure the best result, and what properties are really worth, to ensure our clients don’t pay too much. If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
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