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COVID-19: Melbourne property market will bounce back

By Jessie Stewart

Homebuyers are set to be presented with a smorgasbord of options once coronavirus lockdown rules ease and sellers rush back to the market.

Many sellers withdrew or delayed putting properties on the market once the pandemic was declared and stringent conditions were established.

But vendors are preparing to list again after the National Cabinet announced a road map to easing restrictions.

Uncertainty around Premier Dan Andrews’ plans to ease the restraints will thwart an immediate rush back, but in Sydney, where the State Government has already loosened the reins, more than 100 auctions are planned this weekend.

Historically low interest rates should also drive interest.

Propertyology director Simon Pressley said a strong market before the pandemic and pent-up demand would help the city recover rapidly.

“During past crises the property market has always bounced back before anything else,” he said.

“We’ve got the lowest interest rates in Australians’ lifetimes and people will want to be back in the market as soon as they can be.”

He said a spike in unemployment and closed international borders would stifle the recovery, and warned the longer Victoria took to lift restrictions, the further property prices could fall.

As much as 10 per cent — or $73,000 — could be wiped from prices in the next year, according to Finder research.

Realestate.com.au chief economist Nerida Conisbee said the sooner the economy got moving, the better.

“In NSW we’ve seen open for inspections restrictions loosen and a feeling of normality return, which has seen the decline in listing numbers flatten out a little bit,” she said.

“When the same starts happening in Victoria it will be very positive for the market.”

Affordable suburbs in Melbourne’s outskirts are among those defying the downturn.

Hoddles Creek, Nar Nar Goon, Wandin North and Strathmore Heights were among the city’s top performing suburbs during coronavirus, with large spikes in demand in the past two months on realestate.com.au.

Source: www.realestate.com.au

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