At Pace, we are seeing strong signs of a positive year ahead for the property market, with affordable pockets still to be found. Our Sales and Marketing Director, Ashley Bramich, shares his insights into how the Melbourne market is likely to shape up over the coming months.
Prospective home buyers have one big thing working in their favour in 2022: interest rates are set to stay low, even if a small increase was to take place. On the other hand, we’re seeing labour and materials remain in strong demand, placing upward pressure on construction prices.
We are forecasting a first-home buyer rush as young Australians strive to enter the property market. Affordability is likely to remain a hurdle for these buyers, as home prices continue to soar.
That said, Pace of Blackburn (now selling) and our upcoming Coburg project offer accessible apartments in an affordable price range – between $550-800K. Even in those postcodes, buyers on a budget are likely to feel the squeeze by 2023 and are encouraged to take advantage of the low interest environment and current property values.
When it comes to off-the-plan, value for money has never been stronger. Upcoming developments in Inner West neighbourhoods with superior liveability – including our upcoming precinct in Sunshine North – will cater to this demand. The oversized townhomes within the project will combine premium architecture with a community atmosphere.
From our conversations with downsizers, we recognise that there’s no shortage of Melburnians looking to buy premium, low-maintenance apartments. Pace projects, both current and upcoming, will allow these buyers to continue prioritising their lifestyles.
Looking at amenities, close-quartered communal spaces like gyms and pools are on their way out, in favour of open-air rooftops and gardens. Post pandemic, places that feel less confined are in high demand. With the rise in permanent or flexible work from home, co-working spaces are also a welcome addition.
We’re mindful of the effects that nationwide border re-openings could have in 2022, with an increase in migration to our shores adding another stream of demand to the market.
