9th August 2021 / Rob Fletcher: Market Update | 7 & 8 August 2021

Victorians were plunged into all-too familiar territory last week, with the government announcing the sixth state-wide lockdown – slated for seven days, however there is speculation that it will extend further.

Once again, sellers, buyers and agents swiftly adapted to the circumstances, with several auctions scheduled for the weekend moving online.

It may have been the online format or the number of bidders (9!), but whatever the cause, the auction of 28 Stanley Grove in Canterbury went for over an hour and a half! The original clinker brick home was being offered for sale for the first time in 49 years, located in one of Canterbury's most beautiful groves. Auctioneer Tim Heavyside patiently fielded bids in the online format, with the successful bidder having fashioned her own paddle for the occasion!

The stunning, builder's-own home at 10 Woburn Street in Heidelberg also sold under the hammer via online auction. Attracting six bidders, the luxurious home enjoys a premier Heidelberg Hill position and is also central to schools, transport and lifestyle options.

Domain research has reported this week that Melbourne's unit prices are set to blow out further this year, as young buyers abandon their dreams of a house and turn to apartments instead. Melbourne's median house price soared past $1 million in the June 2021 quarter, defying the pandemic and setting a new record. Units also hit a record price, rising to a median of $572,793.

While the cost of a unit sits at nearly half that of a house, experts say affordability issues will force many in the market, particularly first-home buyers, to purchase apartments rather than houses, which will then drive unit prices higher again. Domain chief of research and economics Nicola Powell said the higher house prices climbed, the more demand would flow into units. "Some people are forced to buy a unit in their designated suburbs," Dr Powell said. "It's about them getting that first rung on the ladder and it has to be a unit because house prices are so high".

We will all keenly wait to hear the news on easing of the latest restrictions. Until then, stay safe!

Success. It's a Fletchers thing.