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The Spring selling season is nearly upon us. (Pictures by Julian Andrews).

The Sydney residential market looks set to kick off spring with a bumper number of offerings.

Over the past month 6000 new listings have hit the Sydney market, which is up 27 per cent on the same period last year. These early bird offerings have taken the total Sydney listings to around 20,000, which is two per cent less than the same time last year. So there is not yet an oversupply, but it could be coming.

Interestingly the national 2020 spring selling season is going to kick off with reduced levels of listings across Australia, down by 12 per cent, according to CoreLogic.

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Park your boat for the price of a Sydney home

As much as the pandemic has and will continue to impact on listing volumes, and prices, life goes on for many. There’s always a need for more or less bedrooms, the wish for a tree or sea change, divorce, listings under executor instructions to avoid capital gains tax, and maybe just grabbing the chance to buy the home that you’d always wanted.

Sydney has around 20,000 listings at the moment. John Feder/The Australian

So that provides a floor for consistent property turnover. The rest is a bit more discretionary or mandatory.

The changing job landscape is likely to influence the market over upcoming weeks, and then well into 2021. Sadly much of it will be by employees who have lost their jobs, and business owners who have lost their business incomes.

It has been investors rather than homebuyers who have moved quickly in reaction to pandemic, possibly with concerns about sustaining their rental incomes.

But there will be many more households thinking of selling and taking up renting for the time being. Looking back, the property cycle over recent decades was barely impacted by rising high unemployment, so this is really going to be an uncharted challenge for the market.

It comes as interest rates are at historic lows, but that is little comfort for households without income.

Houses have been taking 45 days and units 46 days to sell this winter. Photo by Gaye Gerard/ SundayTelegraph

AMP Capital chief economist Shane Oliver has suggested the market was in “the twilight zone” with government support and bank payment holidays protecting it.

The Sydney fresh listings data is a spike that could test the market towards the end of spring, should it be combined with the usual seasonal spike. Interestingly, vendors have not yet been forced into any serious price discounting as they meet the market.

Houses have been taking 45 days and units 46 days to sell this winter – a reasonable time frame. Vendor discounting for private treaty does not show signs of distress selling. Sydney discounting sits at 2.6 per cent for houses and 2.9 per cent for units, which suggests estate agents are doing a great job with their advice to vendors on pricing.

Sydney saw a 0.9 per cent decline in values in July and by 2.1 per cent during the quarter.

But the $866,000 dwelling median was still 12 per cent up on the same time last year.

CoreLogic’s head of research Tim Lawless has noted Sydney’s housing markets had remained relatively resilient through the COVID-19 period so far.

It appears the dearest markets have taken the bigger hit.

Sydney’s upper quartile values are down 2.5 per cent over the past four months, while the lower quartile values are down just 0.1 per cent.

The data highlights Sydney has many market segments and just how important it is for agents to closely understand the shifting trends.

The post Sydney market prepares for big Spring as 6000 properties hit market in past month appeared first on realestate.com.au.

2 Tiersen Place, Sandy Bay. Picture: SUPPLIED

ALMOST half a century has passed from the time this Sandy Bay home was built until now, the first time it has been offered to market.

This immaculately presented and much loved family home curves around a fantastic in-ground pool.

This highlighted feature has been meticulously maintained. It is private, solar heated and full of saltwater. The in-ground pool can be accessed via the living areas and its sheltered courtyard will be perfect for families and those who love to entertain.

The brick residence was built in 1972 and offers versatile, sun-drenched living areas including a substantial separate lounge and living room plus an open plan, beautifully maintained blackwood kitchen and dining area.

Pool with mountain views.

Solid ‘70s construction.

Terrific timber.

The polished Tasmanian oak floors are in immaculate condition and can be found covering a majority of the upper level of the house.

Winter chill will be no problem with the home’s effective ducted gas heating.

The generously proportioned master bedroom comprises a walk-in wardrobe and an ensuite bathroom while the remaining two bedrooms on this ground floor level feature built-in wardrobes and are considerably sized.

The family bathroom has a separate bath, shower and toilet.

The home also benefits from a double garage with a remote controlled door and plenty of additional storage space.

Make your way downstairs to discover a second living room with an adjoining fourth bedroom and a rumpus room complete with a wood-heater.

Sophisticated sleeper.

Living areas galore.

This level is also home to a separate study, which further adds to the level of flexibility that is on offer.

This versatile lower ground floor space has enormous potential. It is easy to imagine it being converted into a fully self-contained accommodation if required — subject to approvals.

Or, it would make the perfect teenagers retreat or man cave with the bonus of its own access.

There is an abundance of additional under-house storage here that is easily accessible from the lower level of the property. There is also a meticulously kept workshop space.

The property spans a 646sq m parcel of land. It is fully fenced and features low maintenance, mature gardens that will be no trouble to look after.

The property is conveniently positioned just moments away from the heart of Sandy Bay and its specialty shops and services.

Room with a view.

Dine in style.

Noted private and public schools and local beaches are also close by.

And yet, the home boats a quiet, coveted cul-de-sac position with lovely mountain views and water glimpses.

No.2 Tiersen Place, Sandy Bay is priced at $995,000+ and listed with Charlotte Peterswald for Property.

Per realestate.com.au data for the past 12 months, Sandy Bay houses are second only to Battery Point for Tasmania’s highest median price.

The median has grown by 3.4 per cent in that year-long period.

The post Rare chance to snap up this Sandy Bay abode appeared first on realestate.com.au.

198 Nebraska Road, Dennes Point. Picture: SUPPLIED

A WONDERFUL island lifestyle, cutting-edge design and an absolute beachfront position – what else could a homeowner ask for?

With the rare benefit of title to the high-water mark, this outstanding contemporary building makes a unique and appealing addition to the suite of holiday homes that enjoy an exclusive location above the sandy stretch of Nebraska Beach.

Clad in oiled vertical hardwood and designed as an offset pair of connected pavilions, the building’s rear door opens to an entrance hallway that links the two, with a large picture window at the end hinting at the expansive panoramas to come.

Turning to the right from the hallway is the bedroom pavilion, with three bedrooms and a bright bathroom/toilet with glass-enclosed rainhead shower.

Indoor-outdoor flow.

Life by the sand.

World class views.

The master bedroom, with its window framing the view, is at the front of this pavilion.

Full-height glass sliders give access from the master bedroom to the spacious deck at the north west-facing front of the house. To the left of the hallway is the heart of the building – the kitchen, dining and living area, which opens to the deck.

There is a practical galley kitchen and an island bench with sink.

This space flows through to the living area, with a pair of comfortable lounges, a huge feature window at the front and stacking sliding glass doors that completely open the side of the living space to the outside.

The fourth bedroom is at the rear of this pavilion.

There is ample rainwater storage and a modern wastewater treatment system. The rear driveway area has parking for three cars.

Cook up a feast.

Plonk down right here.

Firepit? Check.

Adjacent is a gravelled outdoor living area with timber screens protecting dryland plantings and a firepit.

From the deck, a path alongside a stone retaining wall leads down on timber steps through native poa grasses to reach the beach.

As a final bonus, this unique property has its own boat shed on the title.

Completed in 2019 and operated successfully since then as short-term accommodation as well as the owners’ personal weekend retreat, the home looks out across the D’Entrecasteaux Channel with sweeping and uninterrupted views of the mountains beyond North West Bay, the hills of Tinderbox and Mt Wellington.

The Jetty Cafe and gallery are a kilometre or so away and it’s a 20-minute drive to the ferry terminal at Roberts Point.

Properties with an absolute waterfront location on Nebraska Beach come on the market very rarely and tend to attract wide interest.

No.198 Nebraska Road, Dennes Point is listed with Fall Real Estate Kingston Beach and priced at “Offers over $950,000”.

The post Chic and stylish modern beach home on Bruny Island appeared first on realestate.com.au.

A Victorian-era house and two-storey brick factory have been turned into one remarkable home in Geelong West.

Warehouse conversion meets classic Victorian character at a former Geelong West cordial factory that’s been transformed into a knockout family home.

The historic residence at 37 Candover Street has an X-factor worth bottling — starting with a clever conservatory that links its two distinct pavilions.

The five-bedroom house offers almost 560sq m of living space, a rarity in Geelong West, on a 800sq m block with a swimming pool.

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The two-storey former cordial factory now overlooks the pool.

It’s rare to find this much space in Geelong West.

It’s listed for sale with price hopes of $1.85m-$1.99m.

Whitford, Newtown selling agent Peter Fort said the vendors had done an outstanding job renovating the two-storey brick cordial factory and weatherboard house, which date back to the late 1880s.

“The current owners have transformed it and built a conservatory between the front part of the building and the factory,” Mr Fort said.

“It’s very, very unique. It’s like a warehouse conversion that blends into a really period Victorian home so it has certainly got that X-factor and it’s huge, you’re looking at 60 squares.

The open-plan living area has a traditional feel.

Several of the rooms have open fireplaces.

A conservatory links the kitchen to the converted factory and creates another living space.

“The way the accommodation is set up it has four bedrooms and basically four or five living areas but it could be a six-bedroom home.”

The front section has four bedrooms, a study, two bathrooms and an open-plan kitchen, dining and living area that links to the central conservatory.

Beyond here the ground floor of the factory has been converted into another modern living space with polished concrete floors, a studio/home office and garage.

The rear part of the house has a warehouse feel.

The vendors use this first floor space as a main bedroom.

It has the luxury of a huge dressing room.

One of the three bathrooms.

Upstairs is a lavish 90sq m main bedroom suite, with a massive dressing room and retreat.

There’s also off-street parking for five cars behind the electric front gates, where landscaped gardens and red brick paving await.

Mr Fort said the beauty of builder David McGovan’s renovation was its flexibility, with the ability to separate the main dwelling from the back section if desired.

There’s lots of living spaces for families to spread out.

The front bedrooms are loaded with period charm.

“It’s a really good use of space and it has been really well designed,” he said.

“There is this light that filters in — it really has got everything.”

The property is within 200m of Pakington St’s cafe strip and is a short walk from Geelong train station and the waterfront.

The post Former Geelong West cordial factory now a remarkable home appeared first on realestate.com.au.

Many renters have struggled to keep a roof over their heads during the coronavirus pandemic, with a new survey revealing most Australians hit by job cuts have not been offered rental relief.

A recent national poll, commissioned by tenancy advocate, Better Renting, showed just 9% of renters who lost income received a satisfactory reduction in their rent during COVID-19.

The survey of nearly 1000 people showed that almost two thirds of tenants lost some or all household income due to the coronavirus crisis, but only half actually requested a rent reduction.

New national poll shows most Aussie tenants have received no rental support during COVID-19. Picture: Getty.

In addition, it showed tenants faced extreme financial pressures during the economic crisis with 16% of respondents reporting that they had to skip meals to save money and 44% saying they “struggled to make ends meet with rent and bills”.

“Coronavirus has made inequality in our housing market worse”

Better Renting executive director, Joel Dignam, said the survey had unearthed concerning details about the welfare and financial hardship faced by renters.

“This new data shows that although more than three in five renters have lost income since the coronavirus crisis began, the vast majority have not received any rental relief,” Mr Dignam said.

“Coronavirus has made inequality in our housing market worse, and high rents are pushing more people into poverty.

“It’s a terribly stressful situation for renters. For most renters, having an eviction notice land in the letterbox is their worst fear. Many tenants who are out of work and out-of-pocket due to the coronavirus crisis face dire circumstances if eviction moratoriums are lifted in September and October.

“Australia was in the grip of a housing affordability crisis before the pandemic hit. Rental costs have been rising faster than wages for decades, now many renters find themselves spending more than 50% of their income on rent.”

Mr Dignam said the federal government pandemic payments had helped renters meet their financial obligations and called for the supplements to be retained at the same rate.

There are grave fears for the welfare of Australian tenants once JobSeeker payments are cut. Picture: realestate.com.au/rent

“Because JobSeeker and JobKeeper have made such a positive difference to these renters, helping them to keep covering their costs, it’s alarming to think what could happen if it is cut,” he said.

“It will put renters’ budgets under a lot of stress. It will push a lot of people to seek a rent reduction who have not yet tried, and it may require landlords to come forward and play their part.

“A much better outcome would be for the federal government to extend that income support.

“The survey shows renters are worried about what happens next if JobSeeker is cut in September or if bans on evictions are lifted. We call on the federal government to keep the current rate of JobSeeker so renters aren’t pushed into poverty.”

JobSeeker cuts could send 370,000 more Australians into poverty

The report comes after modelling by the national think tank, the Australia Institute, found that cutting the JobSeeker supplement by $150 a week could plunge 370,000 more Australians into poverty.

The study shows Victoria would be the hardest hit with an additional 123,000 people in poverty as the state continues to fight the second wave of COVID-19 infections.

Hundreds and thousands more tenants could be thrown into poverty after JobSeeker cuts. Picture: realestate.com.au/rent

Under changes announced by the federal government in July, JobSeeker will be extended from 25 September until 31 December with a possible further extension into 2021, but the payment amount will be cut from $550 to $250 a fortnight.

The JobKeeper wage subsidy will continue until March next year, but payments will fall from $1,500 to $1,200 a fortnight after September. People working fewer than 20 hours a week will receive $750.

The payments will fall again to $1,000 a fortnight, and $650 a fortnight for people working fewer than 20 hours, for the first three months of 2021.

The post Many tenants battle pandemic without rental relief, suggests new poll appeared first on realestate.com.au.

Melbourne’s real estate industry is preparing for a slow down in property sales under stage 4 restrictions with private home inspections banned until at least mid-September. 

Property and real estate businesses closed from 11.59pm Wednesday 5 August, but online inspections and auctions are still permitted under the strict new measures to stop the spread of COVID-19 in metropolitan Melbourne. Auctions have also shifted online in regional Victoria under stage 3 restrictions, but in-person inspections by private appointment can go ahead.

Melbourne property sales are expected to slow during the six-week stage 4 lockdown period. Picture: realestate.com.au/buy

Victorian Premier Daniel Andrews addressed changes to the rules around real estate during a press conference on Friday: “I’m not expecting any real estate agent to be particularly happy about that, and I’m not expecting any person wanting to sell a house necessarily to be happy with that either.

“That’s just what we have to do, we can’t have groups of people even with pretty low limits, we can’t have people gathering, that’s not conducive with getting those numbers down,” Premier Andrews explained.

During the six-week lockdown, private inspections for new property listings in metropolitan Melbourne are banned, meaning virtual inspections will be the only alternative. The only exception to that rule is for final inspections relating to the settlement on a property that sold prior to the lockdown, according to the Real Estate Institute of Victoria (REIV).

“It falls under the services relating to property settlement, so a pre-settlement inspection could take place, the locksmith could attend to change locks, even, we understand, a valuer could attend prior to the upcoming settlement, said REIV president, Leah Calnan.

Impressively, there are 235 online auctions scheduled across 133 suburbs in metropolitan Melbourne this weekend, but the numbers are expected to decrease over the coming weeks.

Property transactions will drop but prices will be “shielded”

The banning of private inspections in Melbourne is going to be detrimental to the property market, and while virtual inspections will offset the impact, most home buyers want to see a property in person before making a big financial commitment, said executive manager of economic research at realestate.com.au, Cameron Kusher.  

“As a result, property transaction volumes will fall in Melbourne during stage 4 restrictions,” Mr Kusher added, but he said a lack of transactions will likely shield the property market from severe price falls. 

“As we saw during the first Melbourne lockdown, the shutting down of the industry may result in pent-up demand for housing, which could very well be unleashed once restrictions are lifted,” he said. “Private inspections can still continue in regional Victoria, which is encouraging, but we expect there to still be an impact on turnover. A lot of regional demand comes from Melbourne, so Melbourne’s tougher restrictions will affect regional Victoria.

The spring selling season will be different this year

Melbourne buyers advocate and Real Estate Buyers Agents Association of Australia (REBAA) president, Cate Bakos, predicted Melbourne’s 2020 spring selling season will be “completely different” because of the stage 4 lockdown, which will likely extend the season. 

“Provided our lockdown has full effect and and we manage to reduce our [coronavirus] cases significantly, it will push out our spring selling season until very late spring,” Ms Bakos explained.

Melbourne’s spring selling season will likely push out due to pent up demand following the lockdown. demand Picture: Getty.

“I think what we’ll see is a lot of vendors that don’t have to sell [during August] withdrawing their properties from the market…We’ve also got all of the listings that are yet to hit [the market] for spring campaign. So in other words, the vendors with an intent to auction their property in September, we will see them making the decision to either push that back or not sell for now.”

Ms Bakos said that it is likely strong demand will create a buzz of activity in Melbourne’s property market if restrictions are eased in September, saying the city has already witnessed a bounce back after a first round of lockdowns.

“It did essentially bounce back, not to the full speed but not far off it. We didn’t have the price falls that some economists suggested we would,” she said.

“Also, it’s become progressively difficult getting loan approval. It’s not a straightforward process and so for a lot of people who have gone through that process know how precious [pre-approval] is and a lot of people don’t want to waste that, they’re really committed to moving forward. So I think we’ll have a lot of people wanting to jump out of the blocks once we’re allowed to get out and about.”

“We’ll still have buyers that come out in spring and say: ‘right, we’re ready to buy’, expecting to have a bit to choose from and more stock. If we do have vendors that are standing back saying: ‘no it’s just too risky or too difficult, we’ve got too many restrictions’, we might find that we’ve got an even tighter supply issue than what we have had.

In terms of the timing of the six-week Melbourne lockdown, Ms Bakos said, even though it does encroach on September, it’s better for it to happen during August when sales volumes are typically lower than later in the year.

“It will hurt real estate agencies…it will be really distressing for people that have to sell and for people that have to find a new rental property, it’s just a really difficult measure all round. But if we had to pick a period of time where we’ve got the least number of people adversely impacted, we’re probably close to it,” she said.

Agents are preparing for “a rampage of activity” post-lockdown

Sales director at Marshall White – Stonnington, John Bongiorno, said his team is very much focused on using the next six weeks to prepare for the spring selling season, saying he’s expecting “a rampage of activity”.

“We’re just focusing on what we can do and not what we can’t,” Mr Bongiorno said. “We’ll get our agents to get in touch with potential vendors and talk to them about things that you can do to get their properties ready while they’re in lockdown.

Agents are using the next six-weeks to prepare for “a rampage of activity” post-lockdown. Picture: realestate.com.au/buy

“If you look at what happened in New Zealand, they’ve had their three busiest months, just about, on record in terms of real estate transactions. We see that activity will go through the roof when we do get out of lockdown so we’re just focusing on what we can work on as opposed to what we can’t.

Ms Calnan said while the private inspection ban in metropolitan Melbourne is disappointing, she is certain the real estate industry will continue to show the same level of resilience it has upheld since the pandemic began.

“[Agents] are frustrated but they understand, they want to make sure that they’re doing their bit to eliminate coronavirus,” she said.

“Even though we anticipate there will be very few [property] transactions over the coming six weeks, we’re confident that there will be no change to the median house price, and it will create a longer spring market campaign than what we normally see,” Ms Calnan added.

The impact on Melbourne’s property market will be short-term

While Melbourne’s stage 4 lockdown will impact the property market in the short-term, these restrictions are not permanent and won’t change the way we buy, sell and rent property in the future, said chief economist at realestate.com.au, Nerida Conisbee. 

“Victorian consumers and businesses have already shown how resilient they are and should remain confident that once the health crisis is under control a sense of normality will return, which is what we’re seeing across the rest of Australia, Ms Conisbee said. 

The six-week lockdown is not expected to have a long-term impact on Melbourne’s property market. Picture: realestate.com.au/buy

Ms Bakos said the secret to the future health of Melbourne’s property market lies in supply and demand.

“If we had a whole host of vendors flooding the market and creating a bit of imbalance to the supply and demand ratio we’ve had of late, we could have anticipated some price falls. But if our supply and demand equation remains tight, I think that we’ll see prices underpinned somewhat by such tight supply,” Ms Bakos explained.

The post Stage 4 lockdown to stall Melbourne property market, but spring “rampage” expected appeared first on realestate.com.au.

Melbourne’s real estate industry is preparing for a slow down in property sales under stage 4 restrictions with private home inspections banned until at least mid-September. 

Property and real estate businesses closed from 11.59pm Wednesday 5 August, but online inspections and auctions are still permitted under the strict new measures to stop the spread of COVID-19 in metropolitan Melbourne. Auctions have also shifted online in regional Victoria under stage 3 restrictions, but in-person inspections by private appointment can go ahead.

Melbourne property sales are expected to slow during the six-week stage 4 lockdown period. Picture: realestate.com.au/buy

Victorian Premier Daniel Andrews addressed changes to the rules around real estate during a press conference on Friday: “I’m not expecting any real estate agent to be particularly happy about that, and I’m not expecting any person wanting to sell a house necessarily to be happy with that either.

“That’s just what we have to do, we can’t have groups of people even with pretty low limits, we can’t have people gathering, that’s not conducive with getting those numbers down,” Premier Andrews explained.

During the six-week lockdown, private inspections for new property listings in metropolitan Melbourne are banned, meaning virtual inspections will be the only alternative. The only exception to that rule is for final inspections relating to the settlement on a property that sold prior to the lockdown, according to the Real Estate Institute of Victoria (REIV).

“It falls under the services relating to property settlement, so a pre-settlement inspection could take place, the locksmith could attend to change locks, even, we understand, a valuer could attend prior to the upcoming settlement, said REIV president, Leah Calnan.

Impressively, there are 235 online auctions scheduled across 133 suburbs in metropolitan Melbourne this weekend, but the numbers are expected to decrease over the coming weeks.

Property transactions will drop but prices will be “shielded”

The banning of private inspections in Melbourne is going to be detrimental to the property market, and while virtual inspections will offset the impact, most home buyers want to see a property in person before making a big financial commitment, said executive manager of economic research at realestate.com.au, Cameron Kusher.  

“As a result, property transaction volumes will fall in Melbourne during stage 4 restrictions,” Mr Kusher added, but he said a lack of transactions will likely shield the property market from severe price falls. 

“As we saw during the first Melbourne lockdown, the shutting down of the industry may result in pent-up demand for housing, which could very well be unleashed once restrictions are lifted,” he said. “Private inspections can still continue in regional Victoria, which is encouraging, but we expect there to still be an impact on turnover. A lot of regional demand comes from Melbourne, so Melbourne’s tougher restrictions will affect regional Victoria.

The spring selling season will be different this year

Melbourne buyers advocate and Real Estate Buyers Agents Association of Australia (REBAA) president, Cate Bakos, predicted Melbourne’s 2020 spring selling season will be “completely different” because of the stage 4 lockdown, which will likely extend the season. 

“Provided our lockdown has full effect and and we manage to reduce our [coronavirus] cases significantly, it will push out our spring selling season until very late spring,” Ms Bakos explained.

Melbourne’s spring selling season will likely push out due to pent up demand following the lockdown. demand Picture: Getty.

“I think what we’ll see is a lot of vendors that don’t have to sell [during August] withdrawing their properties from the market…We’ve also got all of the listings that are yet to hit [the market] for spring campaign. So in other words, the vendors with an intent to auction their property in September, we will see them making the decision to either push that back or not sell for now.”

Ms Bakos said that it is likely strong demand will create a buzz of activity in Melbourne’s property market if restrictions are eased in September, saying the city has already witnessed a bounce back after a first round of lockdowns.

“It did essentially bounce back, not to the full speed but not far off it. We didn’t have the price falls that some economists suggested we would,” she said.

“Also, it’s become progressively difficult getting loan approval. It’s not a straightforward process and so for a lot of people who have gone through that process know how precious [pre-approval] is and a lot of people don’t want to waste that, they’re really committed to moving forward. So I think we’ll have a lot of people wanting to jump out of the blocks once we’re allowed to get out and about.”

“We’ll still have buyers that come out in spring and say: ‘right, we’re ready to buy’, expecting to have a bit to choose from and more stock. If we do have vendors that are standing back saying: ‘no it’s just too risky or too difficult, we’ve got too many restrictions’, we might find that we’ve got an even tighter supply issue than what we have had.

In terms of the timing of the six-week Melbourne lockdown, Ms Bakos said, even though it does encroach on September, it’s better for it to happen during August when sales volumes are typically lower than later in the year.

“It will hurt real estate agencies…it will be really distressing for people that have to sell and for people that have to find a new rental property, it’s just a really difficult measure all round. But if we had to pick a period of time where we’ve got the least number of people adversely impacted, we’re probably close to it,” she said.

Agents are preparing for “a rampage of activity” post-lockdown

Sales director at Marshall White – Stonnington, John Bongiorno, said his team is very much focused on using the next six weeks to prepare for the spring selling season, saying he’s expecting “a rampage of activity”.

“We’re just focusing on what we can do and not what we can’t,” Mr Bongiorno said. “We’ll get our agents to get in touch with potential vendors and talk to them about things that you can do to get their properties ready while they’re in lockdown.

Agents are using the next six-weeks to prepare for “a rampage of activity” post-lockdown. Picture: realestate.com.au/buy

“If you look at what happened in New Zealand, they’ve had their three busiest months, just about, on record in terms of real estate transactions. We see that activity will go through the roof when we do get out of lockdown so we’re just focusing on what we can work on as opposed to what we can’t.

Ms Calnan said while the private inspection ban in metropolitan Melbourne is disappointing, she is certain the real estate industry will continue to show the same level of resilience it has upheld since the pandemic began.

“[Agents] are frustrated but they understand, they want to make sure that they’re doing their bit to eliminate coronavirus,” she said.

“Even though we anticipate there will be very few [property] transactions over the coming six weeks, we’re confident that there will be no change to the median house price, and it will create a longer spring market campaign than what we normally see,” Ms Calnan added.

The impact on Melbourne’s property market will be short-term

While Melbourne’s stage 4 lockdown will impact the property market in the short-term, these restrictions are not permanent and won’t change the way we buy, sell and rent property in the future, said chief economist at realestate.com.au, Nerida Conisbee. 

“Victorian consumers and businesses have already shown how resilient they are and should remain confident that once the health crisis is under control a sense of normality will return, which is what we’re seeing across the rest of Australia, Ms Conisbee said. 

The six-week lockdown is not expected to have a long-term impact on Melbourne’s property market. Picture: realestate.com.au/buy

Ms Bakos said the secret to the future health of Melbourne’s property market lies in supply and demand.

“If we had a whole host of vendors flooding the market and creating a bit of imbalance to the supply and demand ratio we’ve had of late, we could have anticipated some price falls. But if our supply and demand equation remains tight, I think that we’ll see prices underpinned somewhat by such tight supply,” Ms Bakos explained.

The post Stage 4 to stall Melbourne home sales, but spring surge expected appeared first on realestate.com.au.

HomeBuilder is driving significant demand for new housing, but what happens when the scheme finishes – and will there be any assistance for affordable and social housing?

On 4 June, the Federal Government announced its HomeBuilder scheme, which is available until the end of 2020. It offers a $25,000 grant for anyone earning less than $125,000 per year as a single or $200,000 as a couple, who are building a new home with a value under $750,000.

The scheme also offers the $25,000 grant to anyone meeting the income criteria doing a substantial renovation with a value of between $150,000 and $750,000 as long as the pre-renovation property value is less than $1.5 million, this can include a knock-down rebuild.

However, in my mind, there is one other option that has rendered a deathly silence from the government and that is social and affordable housing.

Calls for support for social housing

It’s National Homelessness Week in Australia, and recent research by the UNSW City Futures Research Centre found our social housing stock has been declining.

The report found that the social and affordable housing shortfall in 2019 was 600,000 units and was projected to reach over one million by 2036. To put that figure into context, over the 12 months to March 2020 just 1,336 new public sector dwellings were completed.

Not all social housing is built by the public sector, however – based on the current shortfall and the rate of affordable housing construction, social and affordable housing requirements will fall woefully short of their requirement.

There are a few ways in which public and affordable housing could be ramped up. The federal and state governments could construct these themselves and end up with an asset that is likely to have a higher value in the future. They could even build these affordable housing lots on land they already own.

It is National Homelessness Week and research shows Australia’s social housing stock is declining. Picture: Getty

Alternatively, governments could look at ways to incentivise developers to include a greater share of affordable housing within new development.

Increasing the provision of social and affordable housing won’t only create societal benefits which are much needed, it can also provide the government with valuable assets as well as helping support employment in the construction through the COVID-19 crisis. As it stands, it looks unlikely that migration will return to anything close to previous levels over the coming years and that will severely impact on the new housing sector.

Given this, federal and state governments need to be thinking about what comes after HomeBuilder and social and affordable housing should be front and centre of their thinking.

Lift in enquiries from first home buyers

The scheme has already led to a surge in enquiries from first home buyers, who can still access other grants in place, as well as leading to a rush in enquiry and sales of established vacant land and land in new housing estates.

It’s safe to say that the scheme appears to be working very effectively, but mainly from the perspective of people building new homes rather than undertaking major renovations, it should also be noted that the eligibility criteria makes HomeBuilder much more accessible for new house construction rather than apartments.

The new homes sector has experienced a surge of enquiries since HomeBuilder was announced. Picture: Getty

The longer-term problem is that a scheme with a short timeframe of availability is going to pull forward a lot of demand, particularly from first home buyers, into this year and that may lead to a big hole in demand in 2021.

At any point in time there is a finite supply of buyers, whether they be owner-occupiers or first home buyers. Schemes such as HomeBuilder tend to encourage people to bring forward their plans to purchase, and this is particularly the case for first home buyers.

The new housing sector is also heavily reliant on migrants as a source of demand, as the general rules for non-residents are that they have to purchase or build a new property. Of course, COVID-19 means that migration has effectively fallen to zero so this source of demand is just not there, outside of recent arrivals prior to COVID-19.

While HomeBuilder is supporting demand in 2020, without international borders being re-opened or some additional stimulus it seems that 2021 could be quite a tough year for the new homes sector.

Many first-home buyers are capitalising on the government’s HomeBuilder grants.

Of course, no-one wants COVID-19 to spread but it would seem reasonable that if people are coming to Australia for a job or study, going into quarantine on arrival is not as big a deal as say someone who is coming on a holiday. That may be something the government looks at.

The government may also choose to extend HomeBuilder beyond the end of the year, but it may not reflect in demand in 2021 assuming that interested parties would have already taken up the limited-time offer. They could also look to some additional stimulus package or tweaks to the renovation component of HomeBuilder.

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The kitchen of 9 Hawthorne Street, New Farm, that went on to sell for $1.625m within 24 hours of it being listed for sale.

The wallpaper might be peeling – and often a touch too garish for today’s tastes – the bathroom and kitchen may have pipes older than most buyers, but demand is running red hot for untouched suburban time capsules.

Unrenovated gems, often the worst house on many gentrified streets – especially in popular inner city suburbs or those within a 20km radius of the CBD – are so hot right now that agents simply can’t get enough of them listed.

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This home at 77 Smallman Street, Bulimba, goes under the hammer at 1pm Saturday August 8.

The wallpaper at 77 Smallman Street, Bulimba, harks back to another age.

They’re finding that when they do list, the houses are either snatched up within hours or spark a surge in inspections from a wide range of interested parties looking to either renovate, detonate or land bank for the future.

Real estate agent Glenn Bool of Place Bulimba has one such home going under the hammer tomorrow at 77 Smallman Street in high demand Bulimba, where he has already had about 50 groups come through. The three bedroom, one bathroom, triple car park house at 77 Smallman Street, Bulimba, has only ever had one owner since 1963.

The property is expected to see strong bidding at its 1pm auction this weekend (Saturday August 8) given the location.

This home at 9 Hawthorne Street, New Farm, sold within 24 hours of listing to a local family.

The bathroom at 9 Hawthorne Street, New Farm.

Another inner-city home at 9 Hawthorne Street, New Farm, was snatched up within 24 hours of listing with seven offers made within the hot inner-city 5km ring.

Aaron Woolard and Dylan Leone of Place New Farm sold the house for a whopping $1.625m with hours of the listing going live on realestate.com.au.

The house had been with the owners for 40 years and was bought by a local family who are now planning to put up their dream home on the site in a massive renovation project.

This is $1.625m home in New Farm.

Old school Queenslander style at the New Farm home.

The New Farm time capsule was on a 539sq m block that’s just 2.9km from the Brisbane CBD, with historic elements in the Queenslander house including VJ walls, casement windows, ornamental ceilings, decorative archways and timber floors.

The sale augurs well for properties like the Bulimba time capsule which will be open for inspection at 12:30pm Saturday (Aug 8) with the auction set to follow straight after at 1pm.

“As it stands at the moment we’ve got really good interest with four or five pre-registered bidders,” Mr Bool said.

The veranda at 77 Smallman Street, Bulimba, enclosed with coloured glass.

Around 50 groups have been through the property so far with multiple third inspections.

The location was the star but there was not taking away from the fact that the property hit the sweet spot for several types of buyers.

“People are loving the location, it’s central Bulimba, a nice flat block, an easy walk to Oxford Street, but it’s the fact that it’s a blank canvas (that’s the drawcard),” he said.

“People can come in, they could remove the house, renovate, extend, there are a lot of options you can have moving forward.”

Many original features at the 77 Smallman Street home in Bulimba.

The home was in its original state with terrazzo flooring in the bathroom and narrow hardwood timber floors, with its post-war status also appealing to those who may want to redevelop the site.

“There’s a real mixture of interest in three categories,” he said. “Young aspirational couples that want to be in the suburb … They will pay the premium to get into Bulimba. It’s the old buy in the best suburb you can afford. We have a number of people looking to do that,”

“There are a number of people investing, looking to hang on to the property and decide what to do with it down the track.”

“Others are measuring up for extensions, some saying they’d remove the house and can have a new one built in 18 months. It’s been educational for me to have different conversations with people about what they would do.”

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This Ringwood East house with plenty of green cred.

Sustainability was embedded into the design DNA of this eco-friendly and stylish Ringwood East house.

The owner’s wishlist for the 2018-built property was a “comfortable, healthy and attractive home with a small carbon footprint and low-maintenance requirements”.

The two-bedroom eco pad at 23 Alexandra Road is now on the market for the first time, with a $950,000-$1m price guide.

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23 Alexandra Road, Ringwood East has a $950,000-$1m price tag.

The home has an 8.2 NatHERs rating, making it very energy efficient.

The home has an 8.2 Nationwide House Energy Rating Scheme rating — well above the minimum of 6 stars.

The design also received a score of 71 per cent on the Built Environment Sustainability Scorecard.

Reverse brick veneer construction, double glazing, excellent insulation, a 2000L water tank plumbed to the washing machine and toilets, and native gardens that require minimal watering are just some of the eco-friendly features.

The home also produces its own energy through a 7.8kW solar power system and battery, and it features an electric vehicle charging station.

The property also produces its own energy – goodbye electricity bills!

Curved walls are an unusual design element used inside.

There are plenty of visually appealing and sustainable elements too. These include a recycled timber front door salvaged from the original home on the block, vintage 1920s tram depot timber floorboards, oiled polished concrete floors and reclaimed Messmate timber benchtops in the kitchen.

High doorways, angled ceilings and curved walls are other snazzy elements inside.

“The passive solar design ensures the interior is warmed by the winter sun but shaded in summer,” Barry Plant’s Louise Carrigg said.

“(It’s) a grand achievement in green design and sustainable living.”

The floorboards in the bedrooms were reclaimed from a 1920s tram depot.

The native gardens require little maintenance.

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