Infolio

How Melbourne’s property market is responding to lockdown

20 September, 2021 / Category: Blog

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How Melbourne’s property market is responding to lockdown

If anyone is familiar with COVID-19 related lockdowns, it’s us Melbournians. The silver lining is that we’ve become more resilient and proactive in forging forward. We pick up where we left off and carry on to make the most of where we are now.

 As Melbourne’s most experienced buyers’ advocates, we’re often asked:

  •       How are agencies and the current housing market adapting?
  •       Will there be a post-lockdown real estate boom in Melbourne?

We’ve evaluated Melbourne’s residential real estate market and what you can anticipate as we move forward in response to these queries.

 

Navigating Lockdown

Adapting to restrictions.

With the announcement of lockdowns, it’s expected that auctions are withdrawn, postponed or sold before auction. Infolio has a suite of options to address the restrictions and allow buyers to conduct a robust assessment of a property. With recent announcements of restrictions easing, you can now have private property inspections. During lockdown, we can assist decision making by preparing detailed due diligence on properties and by providing guidance on areas, budgets, and the market. 

If you’re thinking of buying a home or an investment, there are opportunities now for buyers to secure a good price, especially from vendors who need to sell (usually because they have already bought elsewhere). Now that one-on-one inspections are open, agents will be more motivated to work with willing buyers as they will have a backlog of properties that need to be sold. A lot of this activity is likely to happen off-market as agents are unlikely to want to conduct large numbers of open for inspections.

If you’re needing to sell a property during lockdown,online auctions have successfully demonstrated that the auction-style doesn’t necessarily impact its ability to deliver the outcome of a strong sale for the vendor. 

Online auctions.

Last week, Infolio bought a fantastic property in one of Alphington’s best streets via Zoom. Our clients have been looking for the perfect place to build their dream home and this property offered a rare corner allotment, ideal for their requirements. They were able to act quickly and decisively which allowed them an edge over the other interested parties.

Off-market transactions.

We’ve found that auction withdrawal has reduced with each lockdown, with many vendors opting to sell before auction where possible. 

We recently secured a stunning property in Middle Crescent, Brighton for our client during lockdown. It was planned to go to auction but the vendor had already bought elsewhere and needed to sell in a timely fashion. The lockdown created uncertainty for the vendor and other buyers allowing our client the chance to purchase this substantial home in a non-competitive environment. Opportunities exist in many corners of this market, however, you must know where to look and how to navigate them.

Buying or selling a property during a lockdown? 

The Infolio team has an in-depth understanding of buying and selling properties through lockdown periods. Our specialty agents offer assistance in navigating online auctions, off-market transactions and virtual inspections. 

Our expertise and genuine care for our clients have awarded them profitable outcomes with their properties. We can help you too! Get a free consultation.

 

Post-Lockdown Rebound

Will there be a post-lockdown real estate boom in Melbourne?

History suggests pent-up supply and demand usually rebounds. We’ve already seen regional areas increase in popularity for second home buyers and first-home buyers (who couldn’t afford to purchase property in Melbourne).

We anticipate that as social distancing restrictions ease and vaccination rates increase, we’ll see improved market conditions.

Although less income support is available compared to 2020, the Victorian and Federal Government has assured us the housing market is a priority. Currently, the government stimulus and institutional support for the sector include: 

  •   Low-interest rates
  •   Federal Government Home Loan Guarantees for single parents and first home buyers (The Family Home Guarantee, The New Home Guarantee and First Home       Loan Deposit Scheme)
  •   First Home-Owner Grant (for both Melbourne & regional areas)
  •   Stamp duty exemptions (for first-home buyers, off-the-plan and new CBD apartments)

You can read more about the federal government housing support here.

You can read more about the Victorian state government support here.

 

Preparing for a post-lockdown purchase or sale? 

When the market opens back up, the Infolio team expects a fast rebound in activity and prices. Prepare yourself ahead of time to ensure the best result. Contact us today for a free consultation.

Get in touch today.

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