2022 was a very interesting year to be a Melbourne Buyers Agent. Here are five lessons I learnt reflecting on last year:
ONE
The more things change the more they stay the same. During the peak of COVID, we were told that major cities would be in structural decline, but we are already seeing COVID regional property buyers leave to come back to Melbourne. Cities will continue to grow strongly just as they did post the Black Plague, the Spanish Flu, Swine Flu SARS and every other pandemic.
Melbourne is on track to again become Australia’s largest city – six million by 2032. It’s growth driven by both overseas and internal migration.
TWO
Agents continue to promote “off-market” properties which are actually “pre-market”, i.e. they were always going to come onto the public market – UNLESS someone over paid for them as a pre-market.
True off-markets (if you can spot them) continue to offer some fantastic value buying opportunities – particularly when the seller is elderly and the buyer can move very quickly and is able to make the process easy (for example having flexible settlement terms).
THREE
Mainstream media coverage of the Melbourne inner city market continues to be simplistic and sensationalist rather than curious, in-depth and accurate.
I guess it is challenging when property is one of multiple topics you are required to cover.
FOUR
Cream rises to the top – inner city heritage houses with a proportionate land component, within walking distance of public transport and cafes/retail in a desirable locality in a desirable suburb are always in demand – always.
They are products that never go out of fashion and are always keenly sought by buyers because their capital growth prospects in the medium to long term are very likely to be strong.
These properties also lend themselves to opportunities for renovation which will both improve the experience of living in the house and offer capital growth over and above the spend on renovation.
Melbourne inner city mid-century houses are starting to become regarded as a form of “heritage” housing and are increasingly specifically sought by buyers attracted not only to their localities but their “retro” look and feel.
Those large windows which let in good amounts of natural light, connection between indoor and outdoor areas, relatively large floor plates and generous garden spaces, all combine to make these houses more desirable.
FIVE
Being curious, lateral and patient continue to be the primary attributes required to be successful as a Buyers Advocate and to be able to deliver the best possible outcome for clients.