Inner North
The Report
Welcome to our 2021 edition of The Report – your exclusive insight into the factors shaping the residential property market in the Inner North 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. While border closures, job losses and harsh stage four restrictions presented challenges none of us could have imagined, our real estate market has defied dire expectations.
Our resilient property market and the enduring ‘Great Australian Dream’ has seen record property highs across the Inner North, as multiple lockdowns spurred homeowners to rethink lifestyle choices and housing needs.
A perfect storm is fuelling demand – a combination of record low interest rates, increased cash reserves and federal housing incentives. As a result, we have experienced our strongest market in 30 years in the Inner North, with exceptional price growth and multiple bidders at auction. Latest REIV statistics for the June ’21 quarter show house prices across the Inner North region increased an average of 7.1% on the March ’21 quarter, with prices up 33.6% in Fairfield and 24.7% in Carlton.
The Inner North rental market is where we saw the most impact from COVID-19. A strong surge in rental listings due to the exit of overseas students put tenants in the driver seat to negotiate lower rents in inner-Melbourne suburbs. The number of vacant properties has reduced considerably as Melburnians return to work. However, we expect it will take another 12 months for the rental market to correct, due in part to the continued absence of overseas students.
Looking forward, we expect demand to remain strong across the Inner North, with low interest rates continuing to motivate buyers and investors re-entering the market.
In this year’s Report, we examine the market in your area and investigate the infrastructure improvements that will add to liveability in the Inner North. 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, Jellis Craig Northcote
Director, Jellis Craig Fitzroy
Director, Jellis Craig Brunswick
© Jellis Craig 2021