Melbourne Property News Monthly Wrap – July 2021

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Demand rockets in middle and outer suburbs in July

In July the Real Estate Institute of Victoria (REIV) recorded more than 3,581 auctions. 2,461 properties sold, 1,702 at auction, with 412 passed in. 756 properties were sold before auction & 3 properties were sold after auction. The clearance rate averaged 87%, the same as June.

CoreLogic’s National Home Value Index recorded a 1.3% rise across July for Melbourne homes (houses and units). House prices measured alone rose over the last quarter by 4.1%. This means a rise of 16.2% for the last 12 months.

It has never been clearer that home ownership is our No. 1 security and it’s producingsurging values. Which is great news for sellers.

Middle and outer suburbs surge

Big lifestyle changes are driving the new trends. Agents reported surging interest in Melbourne’s middle and outer suburbs in July, with buyers wanting more spacious family properties, further from the city. For the last year, 9 of the top 10 house value rises were in suburbs at least 10km from the CBD.

And people have supercharged buying power because they’ve had to stay near home during Covid. Government buyer incentives, stable low interest rates and fear of missing out are the other big drivers.

Is it a short term trend?

Inner city buyers are charging further out to areas like Warrandyte once again because travel time is currently less of an issue. But is this shortsighted? Go forward a year or two and professionals will be expected to attend the workplace again, plus on-hold immigration will resume – surely the inner city’s renowned traffic problems will be back too, making those 30-40 kilometre commutes an ordeal again.

According to an agent in the Dandenong Ranges (Domain), 80% of current buyers coming to the area are from St. Kilda, Fitzroy and Brunswick. It’s possible though many of this type of treechanger plans on little or no commuting anyway.

Craig Knudsen
Principal Advisor
Vendor Marketing

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