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2021-02-22 Industry News
Author: Satterley

Melbourne's house and land sector begins year on a high

Melbourne has defied predictions that the COVID-19 pandemic would lead to long-term drops in home values, with new data showing both house and unit prices have bounced back strongly.

According to the Domain House Price Report, Melbourne had quarter-on-quarter median house price growth of 5.3% (for the December quarter) and now has year-on-year growth of 3.9%. In fact, median prices are now back to record levels.

Satterley’s General Manager for Victoria and Queensland, Jack Hoffmann, says the figures were very encouraging.  

“While 2020 was very difficult for so many people, too many of the fundamentals remained solid for the dire predictions to come true.

“Interest rates remained at record lows, meaning some Melbourne suburbs became cheaper to buy than rent, and in addition, we have unprecedented levels of government support for those looking to buy a home. All of these factors contributed to this return to growth. ”

Jack says the new figures backed up what he and his team had seen ‘on the ground’ over the last several months.

“We’ve noticed that demand is very high in all of our communities across Victoria. While the period of heavy lockdowns might have postponed some people’s decisions, it didn’t stop them from considering new land and new homes.

“The desire to buy was always there. And now as restrictions have eased, it has given people the confidence to go ahead with their purchase.”

At the start of this year, Satterley released new land at its Botanical, True North and Arcadia communities, all of which sold-out on the day of release. Jack says the sales results demonstrate just how healthy today’s market is.

“In some ways we wanted to test to see if the demand we saw at the end of 2020 would remain into 2021. What we saw was that it’s most certainly still there.

“The demand from both investors and owner-occupiers looking to buy land to build a home is telling us they are confident that now is a great time to buy.”

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