The latest research shows that Melbourne’s rental housing market remains resilient during the implementation of the new coronavirus restrictions. According to data from the Real Estate Association of Victoria, the highest real estate agency in Victoria, obtained by The Herald Sun, in the third quarter, house prices in Melbourne’s suburbs fell only 1.7%, and the median house price was $846,000. During this period, the real estate market basically stagnated, on-site inspections were prohibited. During the same period, house prices in remote areas of Victoria soared 5.1% to $442,500.
Leah Calnan, president of the Real Estate Institute of Victoria (REIV), said that Melbourne rental housing market prices are still 7.4% higher than the same period last year. He believes that despite the economic recession and the new coronavirus restrictions, house prices will “maintain stable and consistent.” Calnan said: “The data has given homeowners confidence that the weather is precarious and the property market is still strong. It also shows that the experts’ forecast of a 25% drop in house prices is not necessarily trustworthy.” The ANZ Bank (ANZ) predicts that by next year, the economic recession caused by the new coronavirus will cause house prices to fall by 15%, and many industry experts claim that value may fall by 30% from peak to trough. According to REIV data, Glen Waverley was Melbourne’s best performing area in the third quarter, with house prices rising by 6.4% and the median price rising to $1.3 million. An obsolete property at No. 4 Strand Close in the area triggered a rush this week and was finally sold for $1.09 million at an online auction that lasted for nearly an hour.
Real estate agent Nicholas Richards said that in recent months, “the average number of buyers per property has been higher” due to the “lack of listings.” He said that some families who want to buy a house in the school district make the Glen Waverley market alive. The Frankston, Doreen, Point Cook, and Wollert areas outside the city also performed well in the third quarter. The real estate boom in remote areas has just begun. Real estate agent Sandi Barry-Mueller said that allowing Melbournians to visit remote areas to see houses is the key to the future prosperity of the housing market.
Another real estate agent, Miriam Sandkuhler, predicted that “a large number of properties will be listed in December,” saying that “given the current ultra-low interest rates, first home buyers will surge.” “January and February will be very busy.”
Although the new coronavirus epidemic has brought an impact on short-term accommodation rentals such as Airbnb, it appears to have brought benefits to long-term tenants. Increase in the number of houses for rent According to Business Insider.com, data from the real estate website Domain shows that the number of newly registered rental houses has increased in recent weeks, which means that tenants will have more choices. “Almost all states have seen an increase in the number of home registrations in the rental market. We think the reason behind this is that Airbnb and other short-term rental homes are returning to the long-term rental market.” Domain economist Trent Wiltshire said “In addition, we have also seen people moving back home to live, and some shared houses have also been closed because people worry about their work or struggle with rent.”
Some housing agents said that a large wave of Airbnb rental houses suddenly appeared on the market. “The areas with the largest number of new rentals are those with more short-term accommodation.” Wiltshire said, “Although the number of new Airbnb houses for rent may not reduce city-wide rents, it will help ease some suburbs. The supply of housing and apartments has suddenly increased.” “Another possible factor is that people are likely to also move back to Australia from overseas.”
Wiltshire said, “It is certain that we have seen more rentals in the market.” Domain’s data is amazing. In the past two weeks, nearly 40,000 new houses have been registered, an increase of 20% over the same period last year, which is equivalent to 8,000 new houses. Tasmania has the largest increase In Australia’s smallest state, Tasmania, which is also the most dependent on tourism, the number of rental homes has increased by 58%. At the same time, the three major states in eastern Australia, Victoria, New South Wales and Queensland, have added more than 30,000 new rental units, an increase of 25%, 21% and 18% respectively compared with the same period last year. In NSW, Sydney’s inner city and gilded eastern suburbs have long been a gathering centre for Airbnb houses. In the past two weeks, these two regions have seen the largest relative growth in the list of pending rents. At the same time, the number of new rental housing market/apartments in the Sydney CBD has more than doubled. Compared with last year, the number of newly registered houses in Bondi and Coogee also increased by 2,300 and 871 respectively. Victoria has also seen a similar trend. Not surprisingly, Melbourne is home to the most Airbnb houses in Australia.