4th January 2021 / Rob Fletcher: Market Update | 2 & 3 January 2021

Melburnians are gradually returning to work after a well-deserved break following a challenging and eventful year across the globe.

As we hope to return to a sense of normalcy in 2021, Fletchers would like to wish our clients and friends a prosperous year ahead and look forward to being of service to you as Melbourne's property market resumes.

After finishing the year on stronger footing, house prices are set to rise in all Australian capital cities in 2021. Buoyed by low interest rates, stimulus from the government and an improving economy, AMP Capital Chief Economist, Shane Oliver, predicts house prices will surge by 5 per cent nationally in 2021.

'The whole market is being driven by low interest rates, buyer incentives. Obviously, the reopening of the economy and the improvement in the jobs market which are tending to dominate the negatives,' he said.

In a recent update from CoreLogic, data is now showing that 'as remote working opportunities become more prevalent and demand for lifestyle properties and lower density housing options become more popular', housing markets in regional areas have also continued to surge, with demand currently outweighing supply.

Dr Oliver has echoed this sentiment, believing that 'employees' and businesses' attitude to working from home have changed fundamentally as a result of this pandemic, which will change people's attitudes towards commuting and lifestyle and ultimately, where they choose to live. I'd expect regional areas within a two-hour zone of Melbourne [and Sydney] could to be towards 10 per cent next year,' he suggested.

With state-wide border closures and small, localised outbreaks of COVID-19 expected to emerge across the year, Commonwealth Bank Economist, Gareth Aird, says their current forecasts have taken these factors into account and that 'while there's nothing about this latest outbreak just yet that's big enough to shift the dial, it is just a reminder that COVID-19 is still there.'

If you're looking for assistance or advice on your property plans over the next 12 months, we highly recommend getting in touch with your local Fletchers agent to help optimise your marketing strategy and achieve the best outcome for your home.

The Fletchers team would like to wish you all the year ahead! Enjoy your Summer and we look forward to helping you on your property journey in 2021.