Entry-level homes are currently where the action is in Melbourne’s property market while the world grapples with the spread of coronavirus.
Economic uncertainty has the property market at the higher end much quieter than at the more affordable prices where activity is much stronger.
First-home buyers who have managed to stay employed during the pandemic are looking to strike and are able to do so now with less to compete against.
President of the Real Estate Buyers Association of Australia president Cate Bakos spoke to Domain.
“If they’re confident in their jobs and they’re feeling secure, they’ve got a fair amount of assistance from the government,” she said.
“Those memories of competitive auctions and difficult buying conditions are still quite acute for them.”
Ms Bakos said the activity is hotter below the $1.5 million line than above.
Jesse Jones works for McGrath St Kilda and says she’s getting a lot of interest for property from workers in the government, education and finance sectors.
“The buyers that have been in the market for the past six months to a year, that experienced the market at its peak, now see this as a window of opportunity to strike,” she told Domain.
“Seasoned buyers are taking action quickly because they don’t want to miss out again.”
Belle Property director in Albert Park, David Wood, says he is also seeing strong demand in his area at the lower price end.
“The younger ones are still buying, and obviously the ones that are still gainfully employed and consider they will be in the longer term,” he told Domain.
“First-home buyers, and investors, and also families that are helping out with younger people buying properties.”