The property market is continuing its upwards trajectory with lockdown restrictions continuing to ease across NSW and VIC. Although both markets have fared remarkably well throughout the pandemic so far, the long-awaited announcement of restrictions easing is forecasting a boom in the coming months.
Over the past year, the closure of international borders has impacted many investment properties in capital cities but with borders emancipated to reopen soon, investors can expect a return to pre-pandemic levels of tenancies. First home buyers and owner occupiers are also expected to benefit from the post-lockdown market.
Research commissioned by The City of Melbourne indicates that 56% of first home buyers would consider buying a property in Melbourne while 48%already living in the area said they were considering purchasing a property in the city. In a recent interview with The Urban Developer, Lord Mayor Sally Capp commented that these trends reinforced Melbourne’s unwavering reputation as one of the world’s most liveable cities, despite the challenges of the past year.
The NSW property market is expected to similarly recover. Despite being in lockdown for three months, low interest rates, pent-up pandemic demand and government incentives are all contributing to Sydney’s strengthening market. Price growth reached a peak in March this year with further growth expected in the coming months. Westpac recently forecast prices to reach as high as 27% for this year thanks to a strong buyer demand.
In August, new dwelling approvals (including off-the-plan apartments and townhomes) rose by an unprecedented 6.8% - marking the fastest rate of apartment approvals since March and offering a glimpse of the post-lockdown market.
Andrew Leoncelli, Managing Director of CBRE Victoria, said “we are extremely excited about fully reopening. There’s a lot of pent up demand from buyers as many people have not had the opportunity to inspect properties or purchase during the last few months. On top of the incredible market demand, there’s also the fact that interstate rates are staying low for much longer than initially anticipated - which is significantly contributing to the surge in interest from buyers. It’s never been more affordable to carry debt.”
“All forecasts indicate that next year the market will be stronger than ever - price growth and sales volumes are expected to increase significantly meaning the property market is on the cusp of a boom. This is an exciting time to be involved in Melbourne property and we are all looking towards the future.”
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