What Victorian buyers want: The in-demand property types

What Victorian buyers want: The in-demand property types
Jennifer DukeDecember 7, 2020

Melbourne’s strong recent growth means that more modest increases should be expected going forward, according to Opteon Victoria’s head of residential Stuart Bridgeman.

With slowing household income growth, cost of living pressures and housing affordability concerns, he expects subtler increases over the coming months.

However, Bridgeman notes that there are still areas with strong demand – which could be good news for those looking to sell up their property in these locations.

“General demand in the market has been increasing from late 2013 up until now and we would expect this to continue, albeit at a slower rate, than previous years,” he said.

“As we see stronger and weaker pockets form throughout Victoria, it is important for investors and those looking to sell to remember that any growth in value is dictated by supply and demand and this will vary between suburbs and even precincts within suburbs.”

What is in demand:

  • High quality, well-renovated properties in prime positions
  • Older, character-style housing (still attracting a premium from buyers)
  • The middle and outer, eastern Melbourne suburbs are seeing significant demand
  • Properties located in popular school zones
  • Outside of the CBD, infill developments and new townhouses are proving popular with first home buyers. This is largely in the Western and Northern growth corridors

Weaker demand seen for:

  • Inner city high-rise apartments in the CBD and nearby locations (an oversupply could continue on for the next few years)
  • Melbourne’s outer south-east

“While many highrise apartments are being acquired by overseas purchasers and SMSF investors, we could see these numbers drop-off as the economy weakens and proposed changes to overseas investment are implemented,” Bridgeman said.

“In-fill developments are proving particularly attractive for first home buyers,
 especially developments that are made up of three to six townhouse style properties.”

However, he warns new home buyers to ensure they know exactly what they’re buying. While the stock can appear to be good, small room sizes can be dysfunctional.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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