What does the future of Victoria’s property market look like?

This forum was held on Tuesday, 8 June 2021

What a difference a year makes. Twelve months ago, at the onset of the COVID crisis, predictions were being made about massive falls in house prices. Economists anticipated falls in dwelling prices by around 10% in 2020 with further declines in the first half of 2021.

Fast forward 12 months and the headlines are unexpected – property price gains have instead hit a 30-year high. What just happened?

Of course, low interest rates have contributed to this outcome. But questions remain. Is the current surge a bubble or a boom? Is it a case of demand outstripping supply? Will regulators need to step in to slow the rate of growth?

During the forum our panellists presented the many factors that have contributed to the hottest housing market in decades and looked behind the headline figures and answer these questions. The panel also highlighted how different segments are performing and the effects they may have on property development.

Thank you to:

• Chris Lewis, Partnership Manager Strategic Partnerships & Alliances  –  Bank of Melbourne
• Chris Noseda, Property Risk Manager – Bank of Melbourne
• Sadhana Smiles, CEO – Real Estate Industry Partners/Director – Harcourts Move
• Professor Wendy Stone, Professor of Housing & Social Policy, Centre for Urban Transitions – Swinburne University of Technology

for participating in the discussion on the future of Victoria’s property market and the factors that have contributed to the hottest housing market in decades.

From the panel:

• Listen to Sadhana Smiles REIP Insights Podcast, which is available on Apple and Spotify
• Read Housing aspirations and constraints for lower income Australians report, co-written by Professor Wendy Stone
• Keep up-to-date on Bank of Melbourne’s recent Supercharged Housing Recovery reports – Part 1, Part 2, Part 3 here.

This discussion is particularly timely given Committee for Melbourne’s recent paper, Delivering Affordable Housing, which outlines the state of the housing market and its impact on housing pathways and the supply of housing stock across the market spectrum.