2020 was a year in which we witnessed an array of challenges on a global scale, with many industries suffering greatly at the hands of the COVID-19 pandemic. And with a stringent set of restrictions placed on Melbourne’s Real Estate industry for much of the year, it was uncertain how things would unfold for the final quarter, once we moved from ‘stay home’ to ‘stay safe’ rules.
It was expected that there would be a reasonable number of buyers finding their way back into the market once the restrictions eased, but few would have predicted the flurry that occurred, resulting in the highest quarterly median increase since the year 2000; a huge result in what’s been a tumultuous year.
The December quarter delivered a significant rise of 9.5% for houses in the Melbourne metropolitan zone taking the median to $941,000; this contributes to an annual increase of 8.4%. This is a substantial result when compared to the 1.2% decrease we saw in 2019 and 2018’s marginal increase of 1.4%.
Units/apartments delivered a year-on-year boost of 3.8% taking the median to $639,500. Pleasing also, is that each of Noel Jones’ base suburbs recorded positive growth, with Balwyn and Mitcham recording staggering upturns of 19.8%, and Blackburn hot on their heels with a 16.1% surge. These 3 suburbs appeared in the Top 20 list for median house price percentage increase in Q4, as did Croydon who represented Noel Jones well in the outer East, with a rise of 11.6%. Doncaster proudly topped the unit market with a median increase of 38.1% in the December quarter.
David Fileccia, Director at Noel Jones Balwyn says the market has been busy, with things moving at a rate, and force, that was stronger than anticipated. He said they had seen strong land sales, which is always a good litmus test for how their area is tracking. Family homes and turn-key units have also been hotly contested, with undersupply pushing buyers to make fast decisions and at times, advance their plans.
Industry experts agree. Frank Valentic, director of Advantage Property Consulting described the current state as a ‘family pandemic’; too many families and not enough family homes hitting the market. He said fear of missing out was creeping in, leading buyers to act quickly.
Paul Leydin, partner at Noel Jones Blackburn agreed that buyer confidence is strong, citing huge numbers at open for inspections, and properties in the 900K-1.1M bracket doing exceptionally well. “As always, there is strong demand for single-level properties in the area, especially ones with no owners corporation fees”. He also observed vendor enquiry had grown substantially, showing a confidence that should translate to higher listing numbers, easing some of the recent supply issues.
Paul and David both agree that so far, 2021 has continued to deliver results comparable to those that closed out 2020, and nothing suggests this won’t continue. Realestate.com.au chief economist Nerida Conisbee was quoted as saying the year ahead looks rosy for most Melbourne home sellers, thanks to a combination of factors including low interest rates, buyer incentives and Australia’s economy continuing to reopen.
Our Noel Jones agents would love to help you realise your property goals, so contact us if we can be of assistance.