Melbourne’s property market is set for a rapid recovery once COVID-19 restrictions start to ease, with vendors already preparing to list once the dust settles.
Popular family neighbourhoods, blue-chip suburbs and Victoria’s up-and-coming regional towns are tipped to bounce back the fastest from the unexpected property downturn.
Propertyology director Simon Pressley said strong market conditions before the pandemic would help the city recover in as little as six months.
“We’ve got the lowest interest rates in most Australians’ lifetimes and we’ve only got to cast our minds back about six weeks ago to see clearance rates going through the roof and double-digit price growth,” Mr Pressley said.
“The same reason it was happening then is why it will happen again once we come out of our cocoons.”
He said three years of strong median house price growth after Australia’s recession in the 1990s and the Global Financial Crisis suggested the market would rapidly rise again once shutdown restrictions ended.
Propertyology research also showed booming towns including Bendigo, Warrnambool and Mildura would remain fairly bulletproof during the crisis, with low rent supply and high job growth.
Narre Warren North, Box Hill and Blackburn were among suburbs that had the largest price gains between the GFC and coronavirus, according to realestate.com.au.
Chief economist Nerida Conisbee said they would be some of the areas that recovered fastest due to their owner-occupier appeal.
“Melbourne’s middle ring will do quite well … especially if you’ve got a house in a location that’s connected to good schools, public transport and not too expensive,” Ms Conisbee said.
Ripehouse Advisory called Albert Park the state’s most likely “safe haven” against coronavirus in their latest research.
Jellis Craig Richmond agent Trent Stewart said blue-chip suburbs were usually the first to recover fastest from crises.
“We’re certainly expecting things to bounce back pretty quickly because buyer confidence was on the way up prior to this,” Mr Stewart said.
“At the moment a lot of people are talking to us about bringing their properties onto the market around springtime, so we believe there will be a lot of quality stock later this year.”
CoreLogic analyst Kevin Brogan expected public auctions to be quickly adopted again once bans were called off.
“I think there’s potential for a strong response, but it does depend on the duration of social distancing requirements and impacts on the broader economy,” Mr Brogan said.
“Stimulus packages are keeping the basic elements of the economy as strong as they can be … so there’s certainly reason for some optimism about how the property market will respond in a post-coronavirus world.”