The Report
Welcome to our 2021 edition of The Report – your exclusive insight into the factors shaping the residential property market in Bayside and the wider metropolitan Melbourne region.
There’s no doubt that the COVID-19 pandemic continues to have a significant impact on the property market in Melbourne. Over the past 12 months we have seen many changes in our lives and in real estate. The market has worked through economic challenges, lockdowns and community uncertainty, and despite dire predictions, it has proven to be very resilient.
After each lockdown, there is a tremendous build-up of buyers who feel their homes are not going to be suitable long term. With the prospect of doing more work and schooling from home, extra space has become a big priority, and when we emerge from each lockdown, this high demand causes unprecedented price growth. As a result, we have experienced our strongest market in 30 years. Latest REIV statistics for the June ’21 quarter show house prices across Bayside increased an average of 2% on the March ’21 quarter.
The Bayside rental market is where we saw the most impact from COVID-19. With more people moving from tenants to buyers in this time, we saw an influx of short-term rentals, meaning there was an oversupply of property and rental prices dipped. We’ve started to turn a corner, vacancy rates are now decreasing and we predict this to continue to improve.
In the past 12 months there has been a strong trend of people looking to move away from the high density of inner Melbourne suburbs, and Bayside has been seen as an ideal location to balance access to the CBD with extra space and comfort.
Low stock levels, low interest rates and a build-up of buyer demand have held the Bayside market in very good stead, and all signs suggest we will continue to see growth in the market for some time to come.
In this year’s Report, we examine the market in your area and investigate the infrastructure improvements that will add to Bayside’s liveability. Macquarie Group economist Martin Lakos looks into the factors driving price growth, and Jellis Craig CEO Nick Dowling makes his predictions about what is next for the property market.
We hope you enjoy our 2021 edition of The Report and we look forward to guiding you through the sale or purchase of your next home.
Director & Senior Auctioneer
Director & Senior Auctioneer
© Jellis Craig 2021