Just when we thought lockdowns were in the rear-view mirror, Melbourne graced Australia with yet under spanner in the works.
The data is in, and experts, like Anna Porter, are predicting property prices to surge post lockdown.
Property commentator, Suburbanite Principal and valuer, Anna Porter, notes the property market has already been through a lockdown scenario and we now know what happens.
“We’re about to see it happen all over again in Melbourne,” says Porter.
“Buyers and sellers should get ready and start gearing up.”
With years of experience under her belt, Porter warns that buyer competition and enquiry will drop and sellers can expect to face longer selling periods.
“Properties already on the market for sale will have reduced enquiry, especially in the face of heightened anxiety and dim prospect,” says Porter.
“This means sellers who are already on the market and need to sell within a certain time frame will get nervous and offer price discounts to move their property,”
“We usually see this when they are already committed to another purchase.”
Overall, you can also expect to see a lack of new properties being listed for sale on the market.
Porter explains that this will create a lack of stock and once the Melbourne lockdown eases this will push pricing up due to demand outstrippig supply.
“While the lockdowns are on, buyers will have the power and can get some very good buys,” says Porter.
“But as soon as they are lifted and the lights go back on, the market returns to normal very quickly.”
Anna Porter suggests buyers be ready to make a move if they want to leverage the softer conditions.
“We saw this last time with some purchases in Canberra and Sydney representing a 10-20 percent drop on the true value of the property,” says the property professional.
“But don’t forget the market reacts quickly and these buys can be short lived.”
There is also an evident buying opportunity that some Australians may be able to take advantage of.
“We know for some people they will be able to pull the leaver and buy shares or property while the prices are suppressed,” says Porter.
But she warns this is not the strategy for everyone.
Below are some of the criteria Porter has put in place to safeguard her client’s and investors in general for a self-assessment of whether you should invest.
Here’s Anna’s criteria for individuals who should consider investing:
– People with income security, and/or
– People with savings
– If you are comfortable to take a risk with potential upswing at the other end
– Are comfortable with the market fluctuating in the short term and can take a long-term view
– Are able to hold the property for at least 12-24 months and wait for the economy to recover