The number of properties sold in North Melbourne, Keilor and Noble Park North surged in 2021, with “more affordable suburbs” expected to remain popular with buyers this year.
Sales volumes for houses in those inner, middle and outer ring locations jumped by as much as 129 per cent in the last year — more than double that recorded in December 2020 — new PropTrack data from realestate.com.au shows.
Noble Park North topped the growth list with 112 houses sold — up from 49 the previous year. Numbers in North Melbourne spiked from 49 to 103.
Chadstone (up from 43 to 87 sales), Knoxfield (60 to 121) and Blackburn South (79 to 159) also had unprecedented growth.
Overall, Melbourne had an increase of 70.5 per cent in the number of properties sold year on year — the second highest increase of any city or region in Australia.
The Northern Territory saw a 75.1 per cent rise in sales activity in that same period.
PropTrack chief economist Cameron Kusher said Covid-19 related lockdowns and record low interest rates had caused buyers to funnel money into property across the metro area, pushing up sales numbers.
But he predicted CBD hotspots, especially those impacted by the loss of investors and international buyers, as well as cheaper, first-home buyer-friendly suburbs would have more activity in 2022.
“Demand is slowly coming back in the inner city market,” Mr Kusher said.
“And I think the middle ring suburbs you’ll see a big pick-up, as well as the outer, more affordable suburbs.
“They will continue to be quite popular and that’s where a lot of the new supply is too.”
But Mr Kusher said he expected sales numbers to dip this year with less steam in the market.
“There’s an expectation that early this year there will be more listings around, so there won’t be as much urgency,” he said.
“People will take a bit longer (to buy) and they also have other things to spend their money on now. And there’s going to be an overall slowdown in the market too, so that will weigh on sales as well.”
Alexkarbon Real Estate director Charles Bongiovanni — who is currently selling 357 Flemington Road, North Melbourne — said changes to rental tenancy laws, coupled with a decline in university students needing a rental, had prompted many homeowners in the suburb to sell.
He said the number of property listings, and sales, “considerably increased” as a result.
“We found that last year a lot of terrace homes we listed were the older demographic selling out,” Mr Bongiovanni said.
“They had either lived there and wanted to downsize or were investors who had held them for so long, they might have put their children through university.
“But there is always going to be strong demand for properties in North Melbourne.”
Mr Bongiovanni said traditionally about 67 per cent of the suburb’s market was made up of tenants — but the recent rise in sales meant more owner-occupiers had moved in.
Point Cook recorded the most overall sales for the year with 1341 houses sold, while Melbourne (1113 sales) was the best performer for units.
SUBURBS WITH THE BIGGEST YEAR ON YEAR GROWTH IN SALES
Noble Park North — 49 sales in 2020, 112 sales in 2021, 129% increase in sales volume
North Melbourne — 49, 103, 110%
Keilor — 47, 97, 106%
Chadstone — 43, 87, 102%
Knoxfield — 60, 121, 102%
Blackburn South — 79, 159, 101%
Beveridge — 46, 92, 100%
Lang Lang — 33, 66, 100%
Burwood — 100, 199, 99%
Broadmeadows — 72, 140, 94%,
Ashwood — 30, 82, 173%
Hoppers Crossing — 33, 82, 148%
Ivanhoe — 69, 157, 128%
Dandenong North — 44, 96, 118%
Armadale — 88, 186, 111%
Wantirna — 30, 63, 110%
Fitzroy North — 46, 93, 102%
Newport — 46, 93, 102%
Cranbourne — 47, 93, 98%
Travancore — 36, 70, 94%
All figures based on the year to December 2021.
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