Melbourne Property Price Predictions for 2021
House price growth across Australia has slowed down in the last few months. The prices of properties have been declining in Sydney and Melbourne- which used to Australia’s most expensive property markets.
This trend looks set to continue due to the strict lending standards from APRA (Australia’ banking regulator). Potential investors are finding it hard to arrange funds due to the tighter regulations. The investors who had borrowed money in their past would get a loan at a higher interest rate – that’s one of the key reasons why property prices have declined in Melbourne.
Prediction for 2021
House prices in Melbourne have increased 65 per cent in the past five years. The median house in Melbourne in June 2018 was $870,000. Despite the decline in the real estate market, there is no sign of collapse in the coming years. The forecast median house price in Melbourne for 2021 will be $920,000. There will be a total of 6 per cent rise in the median house price from 2018 to 2021.
The increasing population continues to increase the demand for housing – this is expected to maintain an overall supply of residential properties in the Melbourne market. While the national population raised by 1.6 per cent in the year 2017, there were a 2. 3 % increase of population in Victoria only and experts have predicted that it will grow in the next 5 to 10 years- Melbourne is expected to become the largest city of Australia by the end of 2030.
While the construction of new dwellings is predicted to rise in the coming years, there are some massive projects in the pipeline that are under construction and will be completed within 2 years. According to some reports, the decline in new dwelling construction could bring a modest uptick in prices – which will be great for the Melbourne Property Market.
How to Understand the Changing Aspects of Property Market?
Understanding the real estate market has become imperative if you are a potential property buyer, seller or an investor. You should always be aware of all the changing factors that can help you determine your purchasing and negotiating power. Apart from knowing the current prices of properties, make sure you are aware of the forecast prices and the future of the property market you are going to invest in.
Stay Updated with Maiden House Prices
Median house prices is one of the accurate indicators that will take you in the right direction. It will help you evaluate the current status of the real estate market and also help you make the decision that can get the most out of your investment.
It would be good if you also stay updated with the predicted median home prices. This will help you build a safe and secure future while investing your money in buying a property in the hotspots of Melbourne.
Understand the equation of demand and supply
The concept is pretty clear. If you are buying a property in a buyer’s market, you will get a lot of flexibility to get a property at a lower price. The seller might wait to close until you sell the current apartment. On the other hand, buying in a seller’s market can be challenging. The seller may get multiple offers, and you would get the same property at a higher price. That’s why it is important to understand the equation of demand and supply and choose the market as well as time wisely.
Whether you are an experienced property investor or a beginner, it is always vital to create a robust investment strategy or do a review of your existing projects and also take assistance from property agent to make the right decision quickly and easily.