Melbourne Property Market Seminar for March 5

27th February 2023

2021 was a hectic time for the Melbourne property market, but the state of things is predicted to cool down in 2022 and return favour to buyers. Melbourne’s inner-city market has been devastated during the COVID-19 pandemic as residents have moved to outer suburbs and regional areas while working from home. This slump in the market is set for turnaround in 2022, though, according to property experts from within the real estate sector. Government and bank incentives are predicted to make buying easier for first home buyers, however the upcoming Federal election and speculated intervention from the banking regulator could stifle market momentum.

In 2021, a typical inner-city Melbourne dwelling increased in value by 15.1%. The predictions for 2022 are more conservative, with big banks foreseeing a 5-8% price rise, REA Group predicting a 4-7% increase and SQM speculating that prices will end up between a 3% fall and a 2% rise by the end of Q4. Estimations are more conservative this year due to recent lockdowns which closed thousands of businesses and resulted in limited job availability as well as the aforementioned exodus of inner-city residents to the outer suburbs.

However, as lockdowns and border closures are lifted, employment rises and international arrivals begin to return to Melbourne, the Melbourne property market is set for some measure of revival. Buyers will have more choice than ever, so sellers will have to be more realistic as they slap price tags on property. Prices are beginning to stabilize and there is no indication that interest rates will rise, however there are no indications that the same reductions in prices which manifested at the start of the covid pandemic will occur again.

Furthermore, the Federal Government has implemented an initiative designed to make entering the property market easier for prospective home buyers. Stamp duty is being reduced to 50% for buyers who are able to enter the market before June, 2022 and will be reduced to 0% for those who buy homes that have been on the market for more than 12 months. The Commonwealth Bank has also promised to open more spaces for the first home buyers grant which permits first home buyers to withdraw finance with only a 5% deposit; without paying lender’s mortgage insurance.

APM Global is a dynamic real estate and development group specializing in providing end-to-end residential and commercial property solutions for homebuyers, investors and developers in the Asia-Pacific region. Our mission is to empower communities by helping our clients to make an informed decision through our consultancy, educational and research-based approach.

Contact APM Global for all enquiries regarding property acquisition or sales in Melbourne. We work hard to ensure you receive the best financial outcome no matter if you are buying or selling. We take a consultative approach enhanced with a combined 100 years of experience when it comes to managing your expectations in the property market. Call us today.