Why 2021 is shaping up to be a good time to sell property

Australia’s property market is rebounding from a mild downturn in 2020, brought on by the coronavirus pandemic. As the real estate sector gets back on track after lengthy lockdowns, particularly in Melbourne, property experts say 2021 is shaping up to be a good time to sell property.  

Record-low interest rates and huge amounts of government stimulus have led to unprecedented levels of buyer demand on realestate.com.au, creating ideal conditions for vendors, according to realestate.com.au executive manager of economic research Cameron Kusher. 

“The level of demand, as highlighted by searches, high-intent buying activity and views per listing, are all close to historic highs, indicating strong interest in property,” Mr Kusher said. 

Mr Kusher said the key drivers of this demand were government policies aimed at protecting jobs, housing market stimulus measures from both federal and state governments and historic low borrowing costs, which were likely to remain for a number of years.

Restrictions on how people can spend their money, such as overseas travel being off the agenda during the pandemic, has also pushed more Australians towards investing in property. 

“All of these factors are likely to drive a desire to purchase,” he said. 

Mr Kusher said there is currently not enough stock on the market to satisfy buyers, putting sellers at an advantage. 

“Sellers can take comfort in the fact that if they list their property at the right price next year, they are likely to be able to successfully sell,” he said. 

“Prices are already increasing and that growth is likely to accelerate without a meaningful rise in the supply of homes for sale.”

Realestate.com.au data shows the median number of days on market has dropped in many parts of Australia amid a strong rise in buyer demand in recent months, setting up a positive year for the property market.

McGrath Ryde sales agent Kim Toyer-Uttley said there is strong demand but diminished stock on the market in the area, which she described as a “hot spot” due to its close proximity to Sydney city, Parramatta, Hornsby and Chatswood.

“It doesn’t seem to matter whether it’s a high-end home in Ryde, North Ryde or East Ryde or whether it’s a property that needs a lot of work or something that can be knocked down – it’s across all properties, even apartments,” Ms Toyer-Uttley said.

The Ryde region in suburban Sydney has experienced a strong increase in demand from homebuyers. Picture: realestate.com.au/buy

---

Ms Toyer-Uttley said some home owners decided to hold off selling during the pandemic, but 2021 would be a good time to sell. She said owners should also feel comfortable about marketing their property in January.

“They’ll have this frenzy of buyer interest and still not many properties on the market, but come February and March, that’s when people generally start to think about putting their property on the market,” she said.

“January would be a real hot spot for vendors, a strong sellers’ market.”

At a state level in Queensland, South Australia, Western Australia and Tasmania, regional and lifestyle locations have seen the biggest quarterly increases in demand for houses, while regional areas dominate both the national and state lists for the biggest rises in demand for units.

There is strong interest in houses and units in regional areas, including lifestyle locations like the Sunshine Coast. Picture: realestate.com.au/buy

---

Coffs Harbour – Grafton had the strongest growth in demand for units in NSW and nationally, with a 34% jump followed by Western Australia – Wheat Belt at 27%. 

The area with the biggest growth in demand for units in Queensland was the Sunshine Coast, while for Victoria it was the Warrnambool and South West region.

Mr Kusher said the realestate.com.au data showed there is strong interest in regional property markets, many of which are relatively close to capital cities or have direct flights to the capitals.

“You have people seeking a holiday home and they may be more inclined to purchase a unit than a house,” Mr Kusher said.

“Then you have people planning to move out of capital cities and work remotely and they are likely to be looking to purchase houses in these areas.”

The coronavirus pandemic has accelerated interest in beachside and regional living, with changes in the way people work and a resurgence in the mining sector driving a big push into regional areas.

Mr Kusher said demand for inner-city units has weakened due to the prevalence of investor stock, which has been hampered by the closed international borders.

“On the other hand, inner-city houses have remained popular because of their location and the increased borrowing capacity for buyers due to the historic low borrowing costs,” he said. 

“Overall, people are realising that workplace flexibility is going to be more prevalent than it has been in the past and this means that they can choose to live in areas of the capital cities or in regional markets that much better suit their lifestyle.”

City homes sell the fastest, but the regions are catching up

The rise in buyer activity and low number of properties for sale has meant homes are selling faster in many regions.

“We are seeing the time it takes to sell a home generally trending lower, which reflects the strong demand we’re seeing along with limited supply of stock for sale,” Mr Kusher said.

The Murray region of NSW experienced the biggest drop in terms of the median number of days it took for houses to sell during the November quarter compared to the previous three months. Its median days on market halved to 60 days.

Western Australia’s Mandurah, the coastal regional area just outside the southern Perth boundary, experienced the biggest drop in days on market nationally for units, down to 85 days – a drop of 74 days. Its median days on market for houses also declined sharply to 78.5 days.

The time it takes to sell a unit or house in the coastal region of Mandurah, south of Perth, has fallen sharply. Picture: realestate.com.au/buy

---

Regional areas dominate across the states in terms of the biggest declines in median days on market, although suburban areas in Perth and Adelaide also featured in Western Australia and South Australia.

In Victoria the biggest drops were in the Warrnambool and South West region for houses and Geelong for units, while in Queensland it was Darling Downs – Maranoa for houses and units in central Queensland fell sharply.

When it comes to where homes are selling the fastest, the shortest median days on market tend to be in the capital cities with a few regional areas thrown into the mix.

Houses in Melbourne – Outer East are selling the fastest in Australia with a median time on market of 28.5 days. The region also boasts Victoria’s shortest days on market for units, with a median of 36 days.

Houses in the Melbourne – Outer East region are selling the fastest nationally. Picture: realestate.com.au/buy

---

Barry Plant – Lilydale sales manager Josh Stokes said there is massive demand for property in the area, with people attracted to the Yarra Valley and its wineries.

“A lot of people are understanding they can move a little bit further out and get a lot more value for money, and at the same time working from home means it is not going to affect their commute,” he said.

“Our numbers of enquiry are through the roof.”

Mr Stokes said a two-bedroom home in Lilydale, marketed at $570,000-$610,000 took only four days to sell, for $661,000.

This two-bedroom home in Lilydale, in the Melbourne – Outer East region, sold in only four days. Picture: realestate.com.au/buy

---

Mr Stokes said properties in suburbs and towns 5-10 kilometres of Lilydale, such as Yering, Coldstream, Seville and Wandin North, were “flying out the door”, often within seven to 10 days.

He said while there were entry-level homes in the $500,000-$750,000 range available in the area, there was very little stock for people looking for their third or fourth home in the $800,000 to $1 million mark.

“People are probably staying put because there’s not much to upgrade to,” he said.

The Hobart area is number two nationally for houses for the shortest days on market with a median of 29 days, and top of the list for units with 25.5 days.

In NSW the quickest house sales were in Sydney – Outer South West and the Illawarra region (both with medians of 30 days), and Sydney’s Northern Beaches for units (30.5 days).

In Queensland it is Brisbane – North for houses (51 days) and the Gold Coast for units (63 days).