Going once, going twice: sold and severely overpriced

Property prices have risen in 51 of Melbourne’s suburbs, with 50% of the top performing suburbs located in the Mornington Peninsula as reported by the Domain House Price Report. Suburbs occupying the the popular coastline have increased by 30% in 2021, as McCrea takes the cake with a property price medium of $1,037,500.

The Mornington Peninsula has always offered a desirable coastal lifestyle and now with more professionals working remotely, many are taking advantage of not having to be tied to a city office desk and relocating to a lifestyle destination that offers a better work life balance. This surge in demand has naturally increased the pricing of property in the area.

Sydney has seen a house price increase of 6.3% over the last 12 months, and is expected to rise by up to 19% by the end of the year. Likewise, regional lifestyle locations in Sydney such as Byron Bay and the NSW south cost are outperforming the wider overall market as city dwellers are relocating for a lifestyle change. These property trends are also quickly filtering through to the other side of the country, as Perth’s medium property price topped $500,000 in April 2021, up from $480,000 in December 2020 due to higher demand. It’s a similar story in Brisbane with medium values of homes skyrocketing to a never seen before $621,806 with a 9.6% increase over the last 12 months.

There seems to be a trend within many cities of Australia, whereby the demand is higher than the supply. This is especially prevalent at auctions where prices are sky high due to the increased number of bidders. The medium auction price for Sydney rose to $1,755,000 and $1,150,000 in Melbourne, which is well above the median values.

We’re also seeing a similar struggle with the rental space as prospective tenants fight to secure a property with the influx of applications being received by landlords. Many are offering to pay 6 months in advance in order to have a chance at securing the property.

These prices don’t seem to be declining anytime soon, as bank expects forecast a 16.2% rise in Melbourne property values and 19% in Sydney until early 2022. This is a surprising turnaround from the predictions made last year regarding the property market, but record low interest rates, paired with Government grants, certainly helped enticed buyers back to the market - and then some.

If your are interested in selling a property or would like more information on the above, contact a lending advisor from Partners Wealth Group today on 1800 333 143.

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