Melbourne's eastern suburbs, categorised as falling into the city of Boroondara, is expected to recover this year, and buyers are advised to make the most out of the lower current pricepoints.
Toby Parker, director of Hocking Stuart Balwyn, said that while “A-grade” properties (especially those located in Hawthorn and Surrey Hills) posted strong results in 2018, values still declined in Boroondara over the period.
A similar trend is likely to be carried into the first six months of this year, but prices will likely start to come around by the end of 2019 or mid-2020.
Sam Wilkinson, a partner at Kay & Burton Hawthorn, said that the easing of the tight lending conditions will signal the rebound in the market.
“I foresee that once stability returns to the lending market, confidence will begin to rebuild in housing and we will begin to see the first signs of a rebound in the second half of 2019,” he said.
Tighter lending had been a major issue for the market last year in the wake of the banking royal commission, and it is predicted to persist until the first half of this year, but once it moderates and fundamentals of a strong economy and low interest rates are added into the equation, the market should start to bounce back.
2019 could provide a great opportunity for buyers to take advantage of price drops by upgrading to new homes or new suburbs, according to a report by realestate.com.au.
“This could be the year of opportunity to upgrade your postcode,” Wilkinson said.
Richard Winneke, Jellis Craig Hawthorn director, shared a similar view, noting that after the price for properties below $4 million declined in 2018, there would be better value in Boroondara in 2019.
Winneke identified Balwyn North, Camberwell and Kew East as the suburbs to watch in 2019.
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