Port Phillip
The Report
Welcome to our 2021 edition of The Report – your exclusive insight into the factors shaping the residential property market in Port Phillip and the wider metropolitan Melbourne region.
There’s no doubt that the COVID-19 pandemic has had 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 expectations and proven to be very resilient.
With more time spent at home, many people have decided they would like to find larger homes with more space. This high demand has caused unprecedented price growth in Port Phillip. Buyer competition and confidence remains incredibly firm, thanks in part to low levels of quality homes on the market and ongoing low interest rates.
The ferociously confident market and Port Phillip’s position as a very sound municipality for buyers to invest in, has resulted in this being, and without a doubt, the strongest property market we have experienced in well over a decade. Latest REIV statistics for the June ’21 quarter show house prices across Port Phillip increased an average of 11.3% on the March ’21 quarter, with prices up 50.1% in Middle Park and 11.4% in St Kilda.
Online auctions have been a great addition to our property campaigns in Port Phillip. Auctions will always yield the best results as this is where a property will find its true market value. Regardless of whether the auction is conducted online or on the street, buyers are bidding confidently and our vendors have been extremely impressed with their auction results.
The Port Phillip region features our most sought-after suburbs, and even Victorian government stamp duty changes haven’t had much impact on our local market. We live in an area well known for holding property values, with many of our buyers always looking to find their next home.
The Port Phillip rental market is where we saw the most impact from COVID-19. The exit of overseas students and an influx of short-term rentals meant there was an oversupply of property and we saw rental prices dip. However, as we work our way through the second half of 2021, with people returning to their workplaces and Melbourne opening up again, the Port Phillip rental market is improving and vacancy rates are decreasing.
In this year’s Report, we examine the market in your area and investigate the infrastructure improvements that will add to liveability in Port Phillip. 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.
Warwick Gardiner
Simon Gowling
© Jellis Craig 2021