Now is the Time to Buy say Industry Stalwarts
The Melbourne residential market has experienced years of unprecedented growth that saw prices peak in November 2017.
Now, after decades of rapid price hikes, the market is starting to self-correct to a level more traditionally akin to a ‘normal’ market, with organic ebbs and flows.
The recent correction, however, has sent waves of concern among buyers and industry commentators alike, with many pronouncing that this might signify the end of the fabled ‘bubble’.
But Australia has seen this many times before, and each time the market bounces back stronger than ever.
After each downturn, of which there have been at least half a dozen since 1980, the market has recovered within a short time and prices have resumed on a steady upward rise.
Seasoned property stalwarts such as Elias Jreissati of Bensons Property Group, and Leonard Teplin from Marshall White Projects have seen it all before, watching as Melbourne’s cyclical market rose and fell countless times over the years.
They say the market has reached real value levels and market fundamentals point to a positive upswing in 2019, meaning now might just be the best time to pounce, and make the most of current conditions while they last.
What they say...
“The apartment market for off-the-plan remains consistent, with enquiry meeting demand through most of 2018 within strong areas of Melbourne. Given the relative affordability of finance for couples, these buyers are happy to invest more, move to stronger areas or purchase bigger apartments. Subsequently our average sale price of an off-the-plan apartment rose to $963,000 this year.
There will always be demand for well-designed and appointed projects within good locations, close to amenities and infrastructure offering carefully considered floorplans that cater to the end buyer’s needs. These basic fundamentals have buoyed Melbourne’s property market and continue to get stronger.”
It’s true that certain sections of the buying market have had to seek alternative methods to access credit, but that hasn’t diminished the appetite for good property. What we’re seeing is a slew of new lenders filling those gaps for first home buyers, downsizers and families who are still looking to buy new apartments or town homes off-the-plan.
Unemployment rates are at record lows, Australia’s GDP went up by 0.7% last quarter and construction and infrastructure investment remains incredibly strong. Buyers are buying and developers that are meeting demand with quality product are selling – there’s no doom and gloom in the wealth belt of Boorondara, Stonnington and Bayside.”
- Leonard Teplin, Director, Marshall White Projects
“The market will always ebb and flow – the extent of the current softening is highly exaggerated and sensationalised. The Melbourne housing sector had very strong growth for nearly 10 years, it is natural that there will be a slowdown for a while.
The fundamental driver of housing is population growth and it continues unabated. Overseas immigration is still strong, people are still growing up and wanting to move out of home, downsizers are still wanting to downsize and people wanting to own their own home still aspire to do so. These facts never change.
With the mad heat having dissipated from the market, there should be more quality stock available for the discerning purchasers. The thing with property is that if you own it for the long term, it always forgives you and profits you.”
- Elias Jreissati, Group Chairman, Bensons Property Group