The real estate market in Victoria, Australia has been on a remarkable journey, particularly in the wake of the COVID-19 pandemic. As we navigate through 2024, buyers, sellers, and investors must stay informed about the latest trends and insights to make well-informed decisions.
In this blog post, we’ll dive into the current state of the Victoria real estate market, with a special focus on Melbourne and its surrounding suburbs.
Market Overview
Despite the challenges posed by the pandemic, the Australian housing market has demonstrated incredible resilience. House prices have been rising consistently for 15 months, with the combined capital cities experiencing a 10.2% increase in value over the last year. This growth has defied the pessimistic predictions made by the RBA and many bank economists just 12 months ago.
Here’s a snapshot of the current market conditions in major cities:
| City | Weekly Change | Monthly Change | Annual Change |
|---|---|---|---|
| Sydney | 0.1% | 0.3% | 9.2% |
| Melbourne | 0.0% | 0.0% | 3.1% |
| Brisbane | 0.3% | 1.0% | 16.0% |
Factors Driving the Market
Several key factors are contributing to the rising property prices and rents in Victoria:
- Undersupply of quality properties relative to demand
- Shifting housing preferences due to remote work and lockdown measures
- Increased interest in regional and suburban areas
- Easing inflation and the prospect of earlier-than-expected rate cuts
Melbourne’s Western Suburbs
Melbourne’s Western suburbs have garnered significant attention from buyers and renters seeking spacious homes with room for home offices and outdoor spaces. The region’s generous property sizes, parks, and amenities have made it an attractive option for those adapting to the post-pandemic lifestyle[3].
Auction Clearance Rates
Last weekend’s auction results confirmed the strength and depth of the Victorian property market, with the preliminary combined capital clearance rate rising to 75.9% from 71.1% the previous week. This marks the highest preliminary auction clearance rate since February 11th, 2024.
Investor Activity
Investor confidence in the Victorian real estate market remains high, with the value of new investor loans in February 2024 being 21.5% higher compared to a year ago. Investor loans now make up over half of the growth in total new loan commitments over the past year.
Tips for Buyers
- Be prepared to act quickly in a competitive market
- Consider expanding your search to regional areas and outer suburbs
- Work with a knowledgeable local real estate agent to stay informed about new listings and market trends
- Have your finances to make strong offers
As we move further into 2024, the Victorian real estate market shows no signs of slowing down. By staying informed and adapting to changing preferences and trends, buyers, sellers, and investors can make the most of the opportunities presented in this dynamic market.