With the end of the COVID-19 pandemic projected to come soon, the Victorian housing market is expected to rebound as a result.
The market is projected to deliver 8-12 percent rise in capital growth over the next 12 months, due to a low availability of stock of quality assets in popular Victorian areas, according to the latest quarterly Risks & Opportunities Report from Riskwise Property Research.
Housing prices are likely to break record highs, with homes in greater Melbourne and the regional areas with access to the city enjoying strong demand, driven by ultra-low interest rates and very strong buyer sentiment.
Pete Wargent, co-founder of property buying services company BuyersBuyers.com.au says that buyer sentiment has turned around very rapidly.
“We’re seeing plenty of buyers who put their searches on hold in 2020 suddenly rushing back to buy. Stock levels are very low and auction markets in particular are very competitive.”
House price expectations are already being reflected in auction clearance rates figures, with preliminary auction clearance rates in the last week of January 2021 showing results of houses at 84 percent, while for units only 78 percent.
Doron Peleg, CEO of Riskwise Property Research says that the recovery was in line with what had been projected by the research house late last year.
“Historically there has been a strong correlation between movements in interest rates, investor activity, and property price growth, and as we forecast last year, the correlation will reassert itself this year leading to strong price growth in Melbourne, and some of the regional Victorian markets, especially for family-suitable properties.”
The Westpac-Melbourne Institute Index’s house price expectations have surged sharply in the past four months by almost 32 percent, the expectations coming off the forecasted end of the COVID-19 coming sooner rather than later, and homeowners looking to cash in.
Image: Gary Radler