Research Outlook (May.’21)
First Home Buyers will continue to be the key source of housing even after the end of the Homebuilder Scheme. Low mortgage rates and land prices are still considered affordable in comparison to the established market. Investors have returned to the market however, are only 25% of lending commitments, lower than the 10 year average.
In the established market, auction clearance rates moved further into the mid 70 per cent range similarly to the pre-covid market with the number of properties going to auction also similar.
Established housing prices have recovered after tempering during 2020, with areas such as the Mornington Peninsular achieving over 90% clearance rates and demand outweighing supply. House prices increased YoY between 3.6% and 11.2% whilst unit prices increased between 3.7% and 10.4%.
In the growth corridors, land sales have fallen by approximately 27% across Metro Melbourne + Gr Geelong in the month of April 2021, compared to its previous year. There was no change in the median land price of $328,000 in Metro Melbourne and a $10,000 decrease was witnessed in Greater Geelong.
Land availability remains restricted, with just over 1 months’ worth of stock to sell. There is approximately 2100 lots available at the moment, down 12% from last month, percentage of Titled stock remains the same as last month.
01 June, 2021