While 2020 may have shaken up the world of property, things are looking up as we look toward 2021. Whether you’re planning on building a new custom home in Bentleigh or purchasing an existing custom home in Doncaster or Glen Waverley and undertaking a full home renovation we wanted to share three major Melbourne property predictions for the year to come.
Keep reading to learn more…
Australian House prices are increasing
Economic and property forecasters are predicting growth in Australian house prices as we enter 2021. This comes as Australia’s recession was deemed technically over in December 2020.
This, coupled with the control of the Coronavirus pandemic in all states, has secured the confidence of buyers in the market. In fact, in November 2020, the value of Australian homes, including custom homes in Doncaster, increased by 0.8%.
The Melbourne custom home market is resilient and looking up in 2021
It looks like the price of prestigious properties like custom homes in Glen Waverley will rise by 1% in 2021, thanks to a combination of demand from local buyers, government stimulus packages and low interest rates. The end of lockdown across the nation, as well as a new vaccine for Coronavirus, have also shaped this prediction. This trajectory is predicted in residential research group Knight Frank’s Prime Global Forecast for 2021.
In an article for Domain, Michelle Ciesielski, who is the head of Knight Frank in Australia, explained this prediction. “While we experienced great challenges this year with COVID-19, our data shows that prime property markets around the world have remained largely resilient. This has particularly been the case in Australia, with our biggest cities of Sydney and Melbourne continuing to see growth despite lockdowns.”
In the same article, Marshall White director, John Congiorno, said he was surprised at the strength of the Melbourne property market. “We have really only been out of lockdown for six or seven weeks so stock levels aren’t back to their historical numbers, but pent-up demand is pushing the surge in property prices we’re seeing, and I think that will continue into next year.”
Will homeowners look regionally in 2021?
In a year where we’ve spent the majority of the time indoors, and with the massive rise in working from home, there’s a great chance that more and more people – families and couples especially – will look beyond the city of Melbourne to settle down.
As John McGrath writes in his recent blog: “The ‘ring of steel’ separating Melbourne and surrounds is gone and city dwellers can travel beyond 25km from their homes, which will now fully ignite the regional relocation trend that has been held back in Victoria due to the second wave.
Now that city dwellers can travel to personally inspect potential new homes in key lifestyle areas like the Mornington Peninsula, Geelong and Ballarat, I think we’ll see a spike in sales and values soon.”
Looking to build a custom home in Bentleigh, Doncaster, Glen Waverley or surrounds? Get in touch with the team at Edina Building Group today.