Richmond & surrounds
The Report
Welcome to our 2021 edition of The Report – your exclusive insight into the factors shaping the residential property market in Richmond and its surrounds, 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 expectations and proven to be very resilient.
Since we emerged from the extended lockdown in October 2020, the property market has experienced tremendous capital growth in Richmond and its surrounding suburbs. With Melburnians spending more time in their homes, there has been a sharp increase in buyers looking to upsize to larger properties offering more lifestyle amenity and accommodation.
As a result, we have experienced our strongest market in 30 years, with exceptional price growth and multiple bidders at auction. Latest REIV statistics for the June ’21 quarter show house prices across the Richmond region increased an average of 3.1% on the March ’21 quarter.
Low interest rates and stronger than expected economic conditions have resulted in increased demand from first and second homebuyers. Coupled with a low volume of stock, looking for that next property has been a challenge for some, creating a bottleneck in certain sectors.
Despite the strong growth in house values, we have seen rental values dip, then stabilise over this time. Investors have been cautious, leaving owner-occupiers to take up the slack. As we work our way through the second half of 2021, with people returning to their workplaces and Melbourne opening up again, the rental market is improving and vacancy rates are decreasing across Richmond and surrounding suburbs. Developers are starting to re-engage with shelved planning permits and there is a strong pipeline of new projects featuring updated designs to accommodate larger spaces and home offices for a more agile living environment.
We expect the property market in the Richmond area to continue in the same trend, with two very distinct gears – growth in value in the owner-occupier market and a stabilisation of the investor and smaller apartment market.
In this year’s Report, we examine the market in your area and investigate the infrastructure improvements that will add to liveability in Richmond and its surrounds. 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.
© Jellis Craig 2021