Welcome to our 2022 edition of The Report – your exclusive annual insight into the key trends shaping the residential property market in Richmond and surrounds, and the wider metropolitan region.
As pandemic conditions continue to ease around the globe, the welcome return to normality has ushered in a more measured and mature housing market for 2022.
Post-lockdown, a perfect storm of low interest rates, pent-up demand and limited stock caused prices to surge across Melbourne at a rate not seen in decades. While price growth has eased to a steadier rhythm in recent months, buyers are increasingly drawn to quality accommodation with a focus on liveability.
Priorities have changed, and properties with “pandemic appeal” such as more space and a location close to retail, education and recreation facilities continue to perform strongly.
The appetite for renovated properties has increased substantially due to inflation in the construction industry. We see this trend continuing as labour prices and material costs increase further, and this will help cushion the local market.
We anticipate buyers who felt overwhelmed with the soaring prices in the past couple of years will re-enter the buying area and continue to stabilise the market from further price corrections. Meanwhile, demand for entry-level homes and apartments has been bolstered with the 1 July lifting of the threshold for the housing guarantee scheme to $800,000 in metropolitan Melbourne.
Rising demand and extremely low vacancy rates continue to benefit the rental market, with the opening of our international borders providing further stimulus. Looking ahead, we expect this trend to continue.
This year’s edition of The Report investigates the five biggest influences shaping the current property market and details the key infrastructure improvements that will add to liveability in Richmond and surrounds. Demographer Simon Kuestenmacher unpacks the movement of Victorians post-pandemic and what this means for our cities moving forward, and Jellis Craig CEO Nick Dowling makes his predictions about what is next for the property market.
We hope you enjoy our 2022 edition of The Report and we look forward to guiding you through the sale or purchase of your next home.
