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2019-01-15 News & Updates

Why 2019 is a good time to buy in Victoria

While recent headlines on the housing downturn may prompt uncertainty, property experts say that prospective buyers shouldn’t be discouraged.

Much is being written on declining sales results in Australia’s capital city property markets, particularly Melbourne and Sydney. However, these price falls follow a prolonged period of exceptional growth and the market’s underlying fundamentals remain strong.

The results show that the sharpest falls are in Melbourne’s elite inner east suburbs, where prices skyrocketed by as much as 144 per cent during the six-year boom from 2012 to 2017.

But suburbs with greater accessibility for home buyers have experienced slower growth during this period. So although Melbourne’s median home value peaked at $914,000 last year, it’s still possible to buy a house and land package starting at under $400,000 in Melbourne’s greenfield areas.

Population growth in Melbourne is continuing to fuel housing demand. Photo: Josh Robenstone

Looking beyond the headlines there’s much to reassure prospective purchasers.

Australia’s property market is underpinned by record low interest rates, a stable and robust economy with plentiful job opportunities and strong population growth, including ongoing high net overseas migration.

Record population growth in Melbourne is continuing to fuel housing demand, resulting in overall undersupply in the market according to leading industry forecaster BIS Oxford Economics. The forecaster predicts population growth will absorb the supply of new developments from the recent construction boom.

As an example of the high Melbourne’s property market has just come from, in the greenfield market Melbourne reached 24,000 lot sales for the 2018 financial year. This market has now returned much closer to its long-term average of 12,000 lots per annum.

With many house and land packages starting at less than half Melbourne’s median house value, the greenfield market offers homebuyers not only the greatest accessibility but also the opportunity to live in new masterplanned communities with lifestyle amenities near transport infrastructure, schools, shops, and services.

Melbourne’s greenfield market reached 24,000 lot sales in 2018. Photo: Artist's impression of Satterley's True North community

Putting property market fluctuations aside, buying a brand new home means renters can stop supporting their landlord’s property investment. Instead, they can start their own investment in a new home designed for their own family’s needs and future life stages with the prospect of far lower maintenance over the next 20 years, compared with buying an existing older home.

There’s also the peace of mind offered by a fixed time frame and price up front, as well as a structural guarantee.

Australia’s largest private residential developer Satterley Property Group has over 36 years’ experience operating in Victoria, Queensland and Western Australia, with more than a quarter of a million people now living in its communities.

Satterley is developing five new communities around Melbourne; house and land packages range from $397,145 to $1,087,020. Two communities are nearly sold out – Upper Point Cook and Habitat on Davis Creek.

Satterley’s general manager for Victoria and Queensland Jack Hoffmann says the market has been through an extraordinary period of growth and what we’re seeing now is a healthy balance between supply and demand.

Satterley Property Group is developing five new communities in Melbourne. Photo: Artists's impression of Satterley's Botanical community

“We see the period we’re in now as a natural phase that takes place in any market. It’s part of a continuing cycle and if you’re buying a house and land package there’s no need to lose confidence because of short-term fluctuations.”

Hoffmann says because Satterley focuses on developing high quality masterplanned communities, buyers can have confidence in the future value of their purchased properties.

“At the heart of every Satterley project is community. We concentrate intensely on the things that bring people together and that make residents love where they live.

“That includes generous and high-quality areas of green spaces, quality homes throughout and, of course, proximity to services and amenities.”

Satterley’s land development and community design at its Point Cook community – Upper Point Cook – recently won in the “Residential communities over 250 lots” category at the Urban Development Institute of Australia’s 2018 Victorian Awards for Excellence.

Besides stamp duty savings and first-home buyer incentives, Hoffmann says buyers should also look out for extra incentives in greenfield sales.

He says buyers who purchase by February 28 at four of Satterley’s five Melbourne estates will receive a $15,000 pre-paid Visa card at settlement and will only need a $10,000 deposit, depending on location.

Article written by Liz McLachlan and originally published by Domain 15.01.19. View original article here.

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