We are pleased to present RPM’s Q4 report bringing to a close a strong performance for the 2021 calendar year.
The property market overall has demonstrated unwavering strength and resilience throughout the pandemic. In 2021 Melbourne’s median house price not only passed the million dollar mark, it kept rising, and there were 31,652 gross lot sales – an incredible 50% rise year-on-year.
In Q4 2021, 6,793 lots were sold as buyers outpaced developers with demand outstripping supply. The need for developers to replenish pipeline has driven extraordinary englobo land transaction numbers, from both a volume and price perspective.
As we enter 2022 it is difficult to predict with certainty how Victoria’s land market will fare over the course of the year. There are however several positive core macroeconomic factors that will underpin its performance in the short to medium term.
A small uptick in the Wage Price Index in the final quarter of 2021 hints at potential wages growth on the horizon, with overseas and local inflationary factors set to further stimulate economic growth. Unemployment figures are sitting at an unbelievably low rate of 4.2%, with significant increases in hours worked – demonstrating a broader economic recovery post pandemic. From an immigration perspective, there is also some good news.
With skilled workers coming back into the country, and international students being incentivised to return, key gaps in the property market like inner-city rentals, are likely to rebound. Tourists will be a welcome boost to numerous sectors, which in turn will stimulate multiple areas of the economy, as well as elevating consumer sentiment.
While title timeframes and stock supply issues continue, enquiry levels remain high – turning browsers into buyers will require continued innovation and investment, including clever product offerings, and timely stock releases. Low interest rates and Government stimulus bolstered purchaser power throughout the pandemic, however borrowing conditions have changed and we may see a more subdued start to 2022.
We hope you enjoy this edition.