According to the latest report from Herron Todd White, housing activity in Melbourne's inner city suburbs is expected to remain muted over the next few months despite the first signs of recovery.
Perron King, director of HTW, said demand for housing in the central business district is expected to remain weak. Travel restrictions and the closure of international borders would limit the arrival of foreign students, tourists and new migrants from abroad or interstate.
"With lower or no rental income and the inability to find new tenants, investors are likely to sell their properties, which will add more shares to the market which already has a high supply. ", did he declare.
There were approximately 4,300 transactions citywide in November of last year. At the same time, 8,054 new listings were added to the market. This translates into a sales / new listings ratio of 0.5. These happened even with the 0.7% increase in home values ??during this time period.
King said the likelihood of falling sales and increasing supply could potentially hamper house price growth. While this may cause investors to become more cautious, it could also offer homeowners the opportunity to check out the bargains.
"We expect the CBD apartment rental market to start to recover gradually.
The median house price in Melbourne rose 2.1% to $ 717,767 in February, according to CoreLogic – making the city the second best performing market in the month after Sydney. However, on an annual basis, the median price of housing in the city is still 1.3% lower.
Still, King said recent factors could still point to a positive outlook for Melbourne. For example, announcing stamp duty cuts in the 2020-2021 budget would improve optimism.
"New and off-plan properties will receive a 50% stamp duty exemption, with established properties receiving 25% until July 1, 2021, with discounts available to investors and homeowners on the property. properties valued up to $ 1 million. "he said.
Top suburbs:
mt colah
,
rooted hill
,
Bligh park
,
Penrith
,
Geelong West
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