The property markets are running hot in 2021, but there are still some opportunities for growth in certain areas of Melbourne.
Demand has shifted towards houses through the pandemic, but as lending restrictions come into focus next year, there will be a ripple effect in some locations where price growth has lagged. Next year, affordability will begin to bite for houses in Melbourne’s top-performing suburbs, but there are still suburbs and pockets where prices have not soared. These areas offer an opportunity to catch this property wave for buyers in Melbourne.
Just as all of our top 10 danger zone suburbs have been focussed on units, the top picks for buyers are all houses in suburbs where prices remain reasonable.
In Melbourne, the top picks range from around 20 to 40 kilometres from the centre of the city, and we expect family-appropriate housing in these suburban locations to perform well from here.
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Melbourne has experienced the most profound impact from lockdowns, and some Victorians have relocated interstate. But there is also a wall of pent-up demand from frustrated homebuyers in Melbourne, and there will undoubtedly be dramatic rebound inactivity.
Stock levels have been low through this cycle to date but should pick up as Covid-19 restrictions are eased. As a result, we believe there will be more choices for buyers over the coming 3 to 6 months, but as the market for detached homes is still competitive, buyers need to be clear about their strategy and decisively.