Now that we’re open again – the million dollar, or in a lot of cases, the multi million dollar question is – which way is the market headed? After being shut down for several weeks vendors are slowly but surely bringing properties to market across all price ranges and buyers are chomping at the bit keen to secure the right property. Our agents are working overtime to fit in private one-on-one COVID safe appointments to accommodate the pent up demand and the tsunami of enquiry received over the lockdown.
In regard to the direction of the market, it is difficult to generalise as Melbourne has so many different markets within our metropolitan area. Clearly a couple of major factors have had an impact this year meaning our lives will never be the same. How we work and live will change moving forward and hence it will take time for water to find its level when it comes to the property market. There are early signs that Melbourne will follow the Sydney market’s lead and rebound quickly and recover the lost ground from the shake up in March when COVID really impacted Australia. I’ll again qualify this by saying that the recovery is likely to be stronger in certain markets and for particular properties, such as ‘A graders’, while other segments including the CBD apartment market which is focused on overseas students (who have all but disappeared), will take longer to recover.
Demand and supply drive prices and currently we are seeing demand massively outstripping supply for ‘A grade’ family homes in our core areas with a $2 – $5m price range, just as one example. Now that we’re open again we will soon get a clearer picture over the next few weeks which areas of the market and types of property are in the highest demand. In the meantime feel free to reach out and discuss your property needs with any of the Marshall White team – we are so happy to be back in business!