Would-be buyers who want to get a slice of Melbourne's inner-city suburbs should act now before prices start to shooting up again.
Randolph Clements, managing director of Raine & Horne Victoria, said the COVID-19 outbreak has resulted in buyers considering regional areas, leaving inner-city areas on a lull.
"However, the inner suburbs that have been most impacted the pandemic should start to bounce back later in 2021 and early 2022 as buyers return from regional Victoria as fears about future COVID-19 lockdowns abate as more vaccines are produced," he said. "It’s a case of the property wave goes out, and the wave will come back in.”
Since the restrictions started to ease in Melbourne, the local housing market immediately has witnessed an "explosion" in pent-up demand.
"Vendors have been held back from having inspections, while buyers have been unable to attend open homes. It’s like we’ve been holding back a herd of stallions who once released, took off," Clements said.
Melbourne ended 2020 with a 1% monthly growth in dwelling values. On an annual basis, however, prices in Melbourne were 1.3% lower.
The improving levels of activity in the city, however, would likely further boost prices this year.
In fact, Clements said some properties are now actually being sold higher than their asking prices a few days after they have been listed.
“This level of sales activity in Melbourne will continue in 2021 with average price growth of 8% to 10% a distinct possibility thanks to low-interest rates and stronger economic confidence," he said.
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