- Posted By Prince Lakshman
Despite modest price falls, homebuyers are set to have a good crack at the Melbourne property market in 2019.
Experts forecast that the city’s booming population will offset the price declines with the current population upsurge and more new residents looking for family homes.
The soft clearance rates will bring about more private sales and fewer auctions leading buyers to negotiate rather than to compete for homes. This is another upside experts believe will play out positively especially for property investors.
According to WBP Group buyer’s advocate and The Block regular Greville Pabst, there has been no better time in the last 30 years to buy good property.
He added that making good decisions this year will set buyers up for the next upswing between 2021-2025 when there will be a possible undersupply in the housing market and an overwhelming demand for quality rental homes.
However, banks will continue to scrutinise borrowers’ ability to finance loans, taking a hard look at spending habits and the correlation between debt as compared to sources of income.
Those planning to apply for housing loans cannot borrow as much money now as in the past, noted BIS Oxford Economics associate director of residential property Angie Zigomanis.
The year 2019 is also the year where buyers can have more choice in the property market with the new apartment completions coming through.
There’s a boom in new detached housing underway and likely to also reach its peak this year, according to Housing Industry Association senior economist Geordan Murray.
Victoria’s stunning populating growth, running at 2.2 per cent a year on official figures, is an indication of high level of demand for new homes.
“It’s still a lot of people arriving in Victoria, particularly Melbourne, and that’s a lot of people that need a roof over their head,” Mr Murray said, adding that rental vacancies are at low levels, so the new supply is needed.
Experts have also shared 2019’s potential property winners, which include first-home buyer properties with at least 2 bedrooms, family homes with three-four bedrooms, and downsizer properties.