Victoria Land Market Outlook – Smart Property Investment

Buyer interest is expected to remain robust in 2022, according to real estate services firm Oliver Hume, due to the relative affordability of Victoria’s residential markets and other factors supporting growth in metropolitan Melbourne and the Victoria region. .

George Bougias, National Research Manager at Oliver Hume, identified these buyers as new market entrants and homeowners planning to upgrade or downgrade their property.

“With the median property price in Melbourne now above $ 1 million – and affordability increasingly important – we continue to see growing interest in metropolitan and regional land markets in key local government areas. (LGA) “, said Bougias.

Growth corridors

With a median lot price of just $ 304,750 for the November quarter and easy access to the North Melbourne area, Mr Bougias has identified Mitchell Shire as one of Victoria’s most affordable municipalities.

He also reported on the virgin land available with median prices below $ 350,000, such as Hume ($ 337,000) and Whittlesea ($ 339,500) in the north, and WyndhamWyndham, WA Wyndham, NSW ($ 322,500) and Melton ($ 342,500) in the south.

Geelong also saw significant price growth, going from 11% in the August quarter to 21.9% in the November quarter with a median lot price of $ 334,000.

“Although local buyers in Geelong continue to support demand, buyers in Melbourne increasingly see Geelong as an option given the rapidly growing regional city’s value proposition and other competitive advantages,” he said. said Mr. Bougias.

The head of research also predicted that Casey ($ 412,000) and Cardinia ($ 395,000) would remain attractive to a diverse pool of buyers despite slightly higher prices.

“These buyers include, in particular, existing homeowners in the South East and East Melbourne areas who have benefited from healthy capital gains and are looking to use their equity,” he said. .

Outlook for 2022

“In 2022, we expect the positive market dynamics to continue, supported in part by the resumption of international travel and interstate migration,” Bougias said.

Opening borders opens up the market to more potential buyers, he said, and can also snowball to increase buyer confidence as the economy and labor market improve.

Mr. Bougias acknowledged, however, that price increases could slow or even stagnate, depending on various existing and emerging factors.

Given various reasons, including the ripple effect of recent market circumstances and fiscal and monetary support, he predicts that sales volumes is expected to decrease from recent highs.

Other factors that can affect the prices and sales that he has identified are affordability issues as well as more stringent loan requirements.

Nonetheless, Mr. Bougias highlighted the unique opportunities that can be found in the different markets brought about by various factors for the next phase of the real estate market boom.

It related to the recent Federal Government publication 2021 demographic declaration, which projected Melbourne as “the fastest growing Australian capital from 2023-24 and expected to become Australia’s largest city by 2029-30”.

“Melbourne’s prospects, in particular, are underpinned by the city’s recovery from prolonged shutdowns and the opening up of the economy. Although online platforms remain important, with COVID-19 seeing widespread adoption of the technology, buyers are now able to inspect properties after several months of blocking, ”Bougias concluded.

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Real estate

Real estate is a type of real estate that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

Victoria Land Market Outlook



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Last updated: January 05, 2022

Posted: 06 January 2022