PROPERTY data from the big year we experienced in 2021 is flowing in, with regional Victoria found to have reached record highs.
It’s no surprise, given the great regional move we’ve seen since COVID hit.
Recently released data from the Real Estate Institute of Victoria found regional Victoria’s median house price reached $565,000 – higher than Perth’s median house price - after recording a 27% increase over 2021, the largest annual rise since 2001.
Units in regional Victoria also saw a substantial increase in prices, with a rise of 19.6% to reach a median of $395,950.
While regional Victoria grew by more than metropolitan Melbourne, the latter also recorded the highest annual growth in more than a decade, with a 18.9% rise to reach $1.125 million.
The growth in regional Victoria comes as the Victorian Government progresses on its $2 million regional housing project, which is expected to provide ‘essential infrastructure’ for residential development in the state’s west.
The investment is part of its Regional Workforce Pilots program, a $5 million initiative designed to assist in attracting skilled workers to four regions throughout the state – the Great South Coast, the Grampians, High Country and Robinvale.
Meanwhile, the latest auction figures from CoreLogic show there were record auction figures in the December quarter, demonstrating the strong activity we saw at the end of last year after the last lockdown. There were nearly 43,000 homes that went to auction across the capital cities nationally, which was an 85.1% increase from the September quarter and a 109.5% increase on the December 2020 figures. Melbourne had the highest number of auctions in the December quarter, with 19,788 and a clearance rate of 69.7%.
As we edge further into 2022, we are seeing that activity is still strong, and we look forward to a busy year ahead for the property market.
To hear more about "What Next For Melbourne and Victoria Real Estate? The first in our “Where To in 22?” webinar series" tune into my webinar with Terry Ryder of Hotspotting.com.au on February 9.
It’s a rare market indeed when an 18% rise in prices is seen as under-achieving.
Melbourne’s median house price rose 18% in 2021 (CoreLogic figures). This was a commendable result in a year in which Melbourne was dubbed as “the most locked-down city in the world”- but it under-performed relative to the national average rise of 24.5%.
This begs the question: what can Melbourne achieve in the coming year free of lockdowns and with international borders open, bringing back the considerable impact of overseas migrants and foreign students?
Regional Victoria has been a national leader on price growth for several years, including 24% growth both for house and for units in 2021.
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 sellers’ advocate, contact us today.
Upcoming WEBINAR - Where to in 2022?
The answers to these questions, and a whole lot more, will be revealed by multi award-winning ( REIV 2021 Buyers’ Agent of the Year) and author Miriam Sandkuhler and Hotspotting founder Terry Ryder at a free webinar on Wednesday 9 February 2022.
Shortage of rentals good news for investors; bad news for tenants
Australia’s vacancy rate was 1.7% in December, down from 2.4% at the same time last year, and could reduce further, according to the latest research from Domain. That’s well below what’s considered to be the equilibrium of 3%, where the market is balanced evenly between landlords and renters. Now, it’s weighted heavily in the favour of landlords.
In Melbourne, however, the vacancy rate is actually the highest overall at 3.2%, but it’s down from 5.2% from the peak in December 2020, and is expected to fall further. It’s also fragmented, with some areas having much greater demand than others – and hence much lower vacancy rates - and some properties being more sought after than others. For example, many families are looking to upgrade from a three-bedroom house to a four-bedroom house as they want the space, especially now they’re spending more time at home. Regional sea change and tree change areas are also feeling the pinch, with huge demand for rentals from those relocating. There are also expats returning to Australia and seeking rentals, which is adding to the demand for limited stock.
Also contributing to the rental shortage is falling stock because investors are exiting the market, with many unable to pay for the changes required by the new standards for rental properties introduced in the Residential Tenancies Act last year. Many properties now need lots of upgrades to meet current regulations, which is costing landlords tens of thousands of dollars, particularly with the rise in trade costs due to the building shortage. The costs are sometimes passed on in rent, but many properties are also being sold because landlords can’t afford to keep them.
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 property. 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?
Our tree changer client Jacinta had been searching for a new home in regional Victoria after selling her family home in Melbourne, but she kept missing out.
She decided to engage Property Mavens services as a regional buyers agent to help her purchase another property in her chosen area, to facilitate the tree change she wanted.
We were able to successfully purchase this fantastic property, 4-bedroom, 3 bathroom house in Warrnambool for her, dealing with a tricky vendor on Jacinta’s behalf and under challenging conditions. We purchased the property before auction, with the price coming in under Jacinta’s budget.
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 downsize, Dara was referred to Property Mavens by a friend. She sought out our expert Vendor Advocacy advice to support and guide her throughout the process of selling her home, a 3-bedroom, 2-bathroom house in Sorrento.
The result was a price $75,000 over the top of the quote range, to Dara’s delight, with the property selling before auction!
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.
At the end of 2020 our Melbourne buyers agent services helped our first homebuyer clients Ivan and Renata buy a family home.
With a tight budget and in a fast rising market, Ivan and Renata wanted to purchase a low-maintenance property in sought-after school zones as their dream family home. We were able to successfully purchase this fantastic property, a 3-bedroom, 2-bathroom house, in what is a highly competitive market, in Essendon.
We purchased the property at market value, against strong competition at auction, for $1.226 million.
Amazingly, in just 14 months the property has experienced growth of 21% and is now valued at $1.48 million!
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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