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House Price Surge In Melbourne For 2021

By Rachel Wallace

Melbourne house prices will surge 20 per cent across 2021, despite the city enduring four lockdowns since January 1, ANZ has predicted.

But Victoria’s peak real estate body has warned homeowners not to temper their expectations.

After strong price growth so far this year, the big prediction from ANZ has been revised upwards from March when they tipped 16 per cent growth for the year.

In an Australian housing report released yesterday the nation’s third biggest bank noted it was expecting growth to slow in the back end of the year.

But senior economist and report author Felicity Emmett said much of the growth had already happened, with the bank’s figures showing an average 1.6 per cent rise in prices every month this year — and a 1.8 per cent increase in July.

“We do acknowledge that there are downside risks from the current Delta wave, and there is a chance that prices could come in lower,” Ms Emmett said.

“But at the same time, there’s a chance that prices are a bit stronger than we think, given how strong the year has been.”

222 Dromana Parade, Safety Beach, sold almost $500,000 above reserve in an online auction last Sunday, despite going under the hammer more than three weeks into a lockdown.

The report identified growth in housing finance data and rising investor lending as likely to underpin continued rises, but noted increasing issues with affordability would reduce the number of first-home buyers.

It also shows that even in the second half of August house prices were rising more than 0.25 per cent a week, about $2000 a week for an $800,000 property.

Real Estate Institute of Victoria vice president Adam Docking said while “achievable” he didn’t think the market would move that much.

“With the number of lockdowns that Victoria has had I wouldn’t be confident with the data they will have to project that,” Mr Docking said.

Noting that the repeated lockdowns had caused spikes and lulls in activity, he said there was certainly “strong and steady” growth occurring as buyers viewed the market shutdowns as a “hiccup in their quest to buy a property”.

18 Verene Ave, Templestowe Lower, sold more than $100,000 above expectations at an online auction last Saturday.

Source: realestate.com.au

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