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The housing markets in Melbourne and Sydney have been subject to some meteoric price rises and other whirlwind transformations over the course of the COVID-19 pandemic here in Australia.
Whilst 2020 heralded in some great opportunities for first-home buyers with price drops not just on the east coast but across the entire country, 2021 has largely done the opposite.
If you're a first-home buyer or are on the hunt for your next investment opportunity, the market in its current state may be quite daunting to venture into, but there's strong evidence that 2022 is looking to be yet another good year for Australians from all walks of life to explore the house and land packages near you as well as pre-existing properties that may be preparing to go on the market.
Here are some of the real estate trends that market analysts predict we'll be bearing witness to over the course of 2022.
First and foremost, we should mention that although prices are still on average about 15-17 per cent higher here in Melbourne, this has not deterred first-buyers and avid property investors from making offers and has definitely encouraged property owners to put their properties on the market.
In fact, there are a disproportionately higher number of properties available on the market today than there are actually buyers. Naturally, as a result of these price rises and the influx of properties available on the market, a record number of houses have been going to auction without selling.
In short, this is partly the reason why real estate market analysts believe that the price rise that was originally expected to continue all throughout 2022 might be reaching its peak a little earlier than anticipated.
The current market forecast for Melbourne dictates that prices will stay higher throughout 2022, but this growth won't be comparable to the 0.8 per cent per day increases we witnessed over the course of Melbourne's last COVID-19 lockdown.
If you've gone to any open houses over the past few weeks, you may have already noticed that each inspection time has attracted a fair number of potential buyers. Crowds have been quite strong at house inspections across Melbourne for two major reasons.
First of all, sitting through months and months of virtual inspections in lockdowns has encouraged many house hunters to attend physical inspections once more purely to assuage their feelings of missing out on the experience.
Secondly, avid house hunters have naturally spent the last two years building the deposits for their next property investment and are eager to see what options are available for them.
For first-home buyers, in particular, there is a grand opportunity to take full advantage of the federal government's first home loan scheme, which allows first-time homebuyers to purchase their property with just a 5 per cent deposit rather than the standard 10 per cent deposit, as well as enjoy stamp duty waivers and other concessions depending on the region in which they purchase their first property as well as whether or not the property is a new build or pre-existing building.
There are 10,000 fresh new spots opening up in the first home loan scheme from the July 1, 2022, with the cap on eligible properties being raised from properties priced at $600,000 in Melbourne to $700,000.
Although criticisms of this scheme included young Australians asserting that 10,000 spots were simply not enough to accommodate the influx of first-home buyers entering the market today, young Australians can still take full advantage of the first-home owner's grant when purchasing a new property in their first foray into the Australian real estate market.
So now you know what to buy and when to buy. What about where to set your sights? The value of your properties is, after all, highly reliant on the demographics of the suburb it's situated in as well as its wider surroundings.
On top of this, Melbournians have undoubtedly recognised the importance of living in an enriching neighbourhood over months of COVID-19 lockdowns.
As a result, many suburbs on the city's outskirts have been recognised as Melbourne's top-performing areas in terms of property growth rates as well as popularity with home hunters.
In Melbourne's north, suburbs like Eltham, Viewbank, Preston, and MacLeod have joined some of Victoria's most attractive regions for property investors. Joining them on this list are popular coastal getaway destinations like Rye, Torquay, and Geelong's Point Lonsdale.
With market analysts predicting many homegrown and international tourists alike will be looking to take full advantage of AirBnBs once travel becomes possible, it may be beneficial for seasoned property investors to set their sights on these unique local destinations rather than properties within metropolitan Melbourne.
Finally, there are a fair amount of design trends to look forward to just as much as market trends. In fact, if you're looking at modern turnkey properties for your next property investment, you may have already come across a fair amount of display homes with these striking, modern design elements.
One design trend that seems to be a favourite amongst Aussie families has to be an open floor plan that combines kitchen, dining, and living room spaces into one large, multifunctional room.
This design trend has proven to be so popular that it has been adopted by renovators working on pre-existing homes and units across Melbourne. Renters can also enjoy open-plan living spaces in freshly renovated units and townhouses situated in all corners of the city.
Alongside open floor plans, modern turnkey homes have also boasted sustainable garden spaces using native flora over European perennials, solar panels and energy-efficient appliances and fixtures.
Modern home designers have been mindful of solar orientation when constructing new properties, so many modern turnkeys have been optimally designed and constructed to keep your future household's carbon footprint significantly lower than current national averages.
There's undoubtedly a lot to be excited about for property investors and owners alike in 2022.
With the emergence of new suburbs all across the edges of the metro Melbourne region, many first-home buyers will also be able to secure themselves a small portion of this beautiful city.