In what has been an unchartered year, the Oakleigh property market has shown remarkable resilience.
After a strong start to 2020, the arrival of COVID-19 in Melbourne saw the real estate landscape shift. Initial lockdown periods changed the way open for inspections and auctions could be conducted, with campaigns moving to online auction, private sale and one on one inspections.
With the uncertainty due to the pandemic April was relatively quiet however the period from May through to July saw an active market, albeit with fewer properties for sale than would typically be the case. Buyers were motivated to act, spurred on by low interest rates. A shortage of properties coming onto the market saw healthy competition and strong results achieved through astute negotiation.
The Woodards Oakleigh team have achieved some exceptional results including 1/18 Calembeena Avenue, Hughesdale for $1,051,000 in July. This three bedroom period weatherboard home on a subdivided block located close to schools, transport and shops attracted interest from multiple buyers and 1/24 Paget Street, Hughesdale – another three bedroom period weatherboard home with a second storey addition on a subdivided block also in July, for $1,222,500. Both these properties sold by negotiation prior to auction after attracting considerable interest.
These sales reflect the appetite for well-located family homes for properties priced $1,000,000-$1,500,000 in the highly sought after suburbs of Oakleigh, Hughesdale, Chadstone and Murrumbeena.
The extended Stage 4 lockdown has been challenging for Melbourne’s property market due to the restrictions around inspections, with the number of properties for sale during August and September declining to an historic low.
With the Victorian Government having provided a clearer roadmap towards a ‘COVID normal’, we feel confident of a strong finish to the year once restrictions are lifted. This has been evident globally where there has been a direct correlation between the severity of restrictions and the speed of market recovery. Following the tough lockdown in New Zealand, for example, property prices increased by 9.2% in June 2020 compared to June 2019. Meanwhile, the number of residential properties sold in July increased by 24.6% from the same time last year, according to the REINZ.
With COVID-19 having forced many to put their property plans on hold, there is a level of pent up demand throughout the Oakleigh and surrounding areas. We expect the market to experience a period of strong activity once restrictions have lifted, when homes can be inspected in person and property marketing campaigns can be executed.