Market Update

At Abercromby’s we try to remain apolitical in our market reports, not only because politics makes dull reading while one is trying to find clear information on Melbourne’s property market, but also because it would be foolish to assume we knew any more about the political machinations of Victoria than our clients do.

With that disclaimer, it must be noted the premier of our great state seems to have mistaken quarantine for a frat-house party and unleashed further economic uncertainty into the market. It feels like only yesterday he was on a very high horse lecturing the other state premiers on the finer points of epidemiology and schooling them on the methods of taming a pandemic, and now they’re sneering at him like he’s a blowhard brought low. Not many of us will see the Queensland sun this year.

News is better in Stonnington and Boroondara than elsewhere, and it must be acknowledged social distancing is easier here than in many other places. When restrictions eased in the suburbs Abercromby’s calls home we saw uplift in both property sales and listings. As well, blue ribbon postcodes are virtually immune, in the short term, from the fall-off in immigration that is having a deleterious effect in outer suburbs.

Victorians, until this recent Melbourne lockdown, have been becoming more optimistic and consumer confidence has risen. Which gives us heart about how eagerly the market will bounce back once this latest lockdown has been endured.

At Abercromby’s our dynamic sales team has completed some exceptional sales, including:

  • Irving Road, Toorak
  • Bunalbo Avenue, South Yarra
  • Hardy Street, South Yarra
  • Grange Road, Toorak
  • Copelen Street, South Yarra
  • Forbes Street, Essendon
  • Anthony Street, Glen Iris
  • Macauley Road, North Melbourne
  • Manningtree Road, Hawthorn
  • Williams Road, Toorak X 2

Remarkably, in this strangest of years, Abercromby’s achieved a record number of sales for June. And we have sold over sixteen million dollars worth of real estate in the last forty-eight hours. Our discreet marketing methodology is proving well fitted to the new Covid-19 world.

It has been said that Covid-19 is a bit like The Spice Girls... everyone’s doing their best, but Victoria keeps letting the others down. This second-wave, caused by a quarantine as porous as a colander, has made predicting the short-term market difficult. Another month and a half of lock-down must be tolerated. But after that the twin regenerating effects of spring and freedom will kick in. Our recent interactions with prospective buyers have led us to believe that many people are reevaluating their domestic situation in light of the pandemic to incorporate their business and home. Which will in the near future, if people go ahead and combine home and office, lead to an invigorated domestic property market.

Data from a recent consumer survey indicates people still think it is a good time to buy, but they’re holding off in the hope prices may fall. This suggests market wide sales might be somewhat lethargic for the next few months, but that there is a pool of buyers poised.

Don’t be fooled by the many extraordinary events 2020 has thrown up so far, prospective homebuyers have kept their eyes on the ball. They are still keenly aware they live in a time of historically low interest rates and are eager to take advantage of this. Confidence, despite this current hiccup, is improving, as evidenced by clearance rates having bounced back after lockdown one. Put simply: people have realized the pandemic isn’t the end of the world and are getting on with things.

At Abercromby’s we currently have a splendid selection of properties for sale, so give one of our friendly sales staff a ring.