21st January 2013: Victoria’s Property Market – the year ahead

Whilst 2012 saw some improvement in the property market, many property seekers are wondering what is likely to happen this year. Will the market strengthen? Where are the best spots to buy? Generally, most experts agree that we will see positive results this year.

Fletchers Executive Chairman, Tim Fletcher, gives his thoughts for 2013:

What are your general expectations for real estate in 2013?

Plenty of positives are emerging for 2013 for both buyers and sellers. I see this continuing with a steady increase in real estate activity and some areas of Melbourne performing better than others, as is always the case. Traditionally the market is underpinned by people upgrading, investors and first home buyers, whose return is evident due to affordability and up to 30% stamp duty relief. Leading financiers report and increase in lending, migrants still favour Melbourne, so our population continues to grow and under-supply prevails.

What are the key opportunities for buyers to keep an eye out for in 2013?

Opportunities don't last, so act while properties are still within your reach; an affordable market provides a great opportunity to upgrade. Research what financial assistance you may be eligible for as a first home owner or pensioner through the State Revenue Office. Also take advantage of good deals being offered on home loans now. Watch results, keep abreast of trends to maximise your return (e.g. popularity of units, new industry and infrastructure that will make an area more attractive, etc).

Which key suburbs do you predict will have good growth in 2013?

Areas previously in great demand that experienced a period of dormancy should re-energise now. Whilst erratic growth is sometimes seen in various suburbs, in the main, good growth can only be assured in blue-chip, established suburbs that are accessible to city and with good infrastructure. For good capital growth in emerging areas, you need to consider the old fundamentals of infrastructure: industry and transport. I predict that Thornbury, Yarraville, Mitcham, Blackburn, Box Hill and Ringwood will show reasonable growth in 2013.

Tim Fletcher has over 40 years experience in the real estate industry, and is one of its most respected and prominent members.