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Melbourne’s Housing Market Remains Strong: Q2 Sales Results Show Positive Growth

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melbourne house sales results

The real estate market in Melbourne, Australia, has been on the rise for the past decade, with residential properties experiencing high demand and strong sales figures. As of the second quarter of 2021, the market continues to display positive growth, indicating a promising outlook for both buyers and sellers.

Melbourne’s economic stability, population growth, and low-interest rates are the primary factors responsible for the strength in the housing market. Despite the pandemic’s impact on the broader economy, the demand for housing in Melbourne remains high. With the current state of the market, buyers and investors are optimistic about the continued growth in the future.

Factors Behind the Strong Melbourne Housing Market

The real estate industry’s success in Melbourne has traditionally depended on factors such as population growth, job creation, economic stability, and infrastructure development. While the pandemic has disrupted various economic sectors globally, Melbourne’s market has still come out strong because of several reasons such as:

Robust Infrastructure Development

Melbourne’s ever-growing infrastructure has contributed to the continuous strengthening of the real estate market. The city’s scenery is admirable, featuring vast arterial roads, bike lanes, rails, trams, and buses that provide access to and from different locations. Public transportation infrastructure is a significant contributor to the relative affordability of properties in the city’s suburbs. Properties that are relatively far away from the city center, but easily accessible via public transport, tend to be more affordable while also offering a desirable urban lifestyle experience to buyers.

Population Growth

Melbourne’s population is growing rapidly, with projections showing that it will hit eight million by 2051. Rapid population growth, especially to suburbs with strong amenities, great schools, and public transportation, is among the reasons residential property demand is on the rise.

Robust Economy

A robust economy plays a crucial role in the real estate market’s success, and Melbourne has grown to become the heart of Australia’s economy. The city’s GDP is more significant than that of some neighboring countries, an impressive feat that has led to a job boom trend. With a strong economy come job opportunities, which, in turn, attracts more people moving to the city to work and settle down.

Low-Interest Rates

The central bank’s consistently low-interest rates in Australia have supported and stimulated the real estate and housing market over the past decade. Low rates tend to drive investor interest and create a favorable lending environment, enticing first-time buyers to invest in properties.

Recent Q2 Positive Sales Growth

Melbourne’s housing market recorded an impressive performance in the second quarter of 2021, with several suburbs experiencing robust sales growth. There was a 6% increase in housing prices, with a median price of AUD 800,000. Sales went up by 41%, and auctions became more prevalent, with a boost of 47% in scheduled auctions compared to the previous year. These figures depict a massive shift towards a seller’s market, prompting buyers to look for more affordable homes on the city outskirts or more in-depth into the suburbs.

The city’s suburbs such as Cheltenham, Reservoir, and Footscray recorded the highest growth in Q2 2021, with Cheltenham recording a 24% rise in sales growth. Reservoir and Footscray recorded sales growth above 20%, indicative of a rapidly emerging inner-city market. According to recent reports, a high percentage of sale listings are receiving multiple offers, indicating the competitiveness of the current real estate market.

Melbourne Housing Market Forecast in 2021

As of now, the Melbourne housing market remains robust, with favorable market conditions for buyers and investors. Provided demand continues to show an upward trend, property prices are expected to also increase. According to expert predictions, Melbourne’s housing market is on track to grow 9-14% in 2021, driven mainly by the city’s population growth and strong economy.

Moreover, continued government investments and support towards infrastructure development and job creation in the region will fuel the real estate industry’s growth. While there is always a risk of market fluctuations and other unpredictable economic conditions, the current factors point towards a stable growth trajectory for the Melbourne housing market in the long term.

FAQs

What kind of buyers are interested in Melbourne’s Housing Market?

Several types of buyers are interested in Melbourne’s housing market, ranging from first-time homeowners to investors looking to buy properties for rental income. With the current low-interest rates, a favorable lending environment, and a high demand for properties, investors in search of safe, long-term returns are drawn to Melbourne’s market.

Where are the most affordable neighborhoods in Melbourne to purchase a property?

The most affordable neighborhoods in Melbourne to purchase a property are generally further out of the city center, in the suburbs closer to the city’s outskirts. For example, suburbs like Frankston, Werribee, and Craigieburn offer affordable properties and are popular among first-time homebuyers. Buyers looking for a higher-end offering would instead consider Ripponlea, Heidelberg, or Altona.

What are the best resources for guidance while purchasing a property in Melbourne?

Several resources can provide guidance for homebuyers in Melbourne. Real estate agents in the city can offer insight into the local market, while property listing websites such as https://www.mazrealestate.com.au/for-sale-house-in-melbourne/ can offer comprehensive listings of properties for sale in Melbourne. Additionally, homebuyers can consult mortgage lenders to understand their financing options and make informed decisions.

What’s the role of the government in Melbourne’s housing market?

The government in Melbourne plays a vital role in shaping the city’s housing market. They ensure the development of the required infrastructure, support job creation, provide incentives to first-time homebuyers to make it easier to acquire properties, and regulate the market to prevent market fluctuations. It is mainly through the government’s support that the housing market in Melbourne remains one of the most stable and consistently growing in the world.

What’s the current state of the Melbourne housing market?

The current state of the Melbourne housing market is robust, with buyers and sellers experiencing favorable market conditions. The real estate industry in the city has experienced significant growth, with property sales increasing by around 6% in Q2 2021. The city’s population growth, robust infrastructure development, strong economy, and low-interest rates continue to provide a conducive environment for the housing market’s growth.

What property trends should I expect in Melbourne in the future?

According to expert predictions, the Melbourne housing market is expected to experience continued growth, with property prices predicted to increase by 9-14% in 2021. Suburbs closer to the city center are expected to grow in value faster than those in the suburbs further out. Additionally, technology-driven features like smart homes, energy-efficient appliances, and better security features are becoming increasingly popular, significantly influencing the real estate market.

How can I get the best deal on a property purchase in Melbourne?

Getting the best deal on a property purchase in Melbourne may require some work, including research on the property’s location, market conditions, and favorable loan terms. You can engage in the services of a real estate agent to get local market knowledge, or visit property listing websites to find competitive deals. Financing options can also help ensure buyers secure a better deal, so it’s advisable to consult mortgage lenders to get the best possible terms on the loan.

In conclusion, the Melbourne housing market’s current state shows that it remains one of the most desirable markets globally for property investment. With robust infrastructure development, population growth, and favorable lending environments, the market will continue to experience sustained growth in the coming years. It is essential to consider the guidance provided by experts to make informed decisions while investing in the city’s real estate market.

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