Whether you’re looking to purchase an existing home, build a new home, knock down and rebuild or invest, knowing what the Melbourne housing market will look like in 2022 is an important step in making the best decisions about buying, selling and building.
Property Prices on the Rise
Across the country, the value of property grew around 22% in 2021 – only slowing down in the past few months. For places like Hobart, that figure is even higher, with a massive 27.7% rise between 2020 and 2021. In Melbourne, it grew by 16.3% and is part of the biggest Australian property growth rate since 1989.
So, what will the Melbourne housing market look like in 2022? Will it continue to grow and grow, or is there an end in sight?
NAB has forecasted a 4.9% growth rate in 2022, ANZ has predicted a 6% hike and The Commonwealth Bank expects around a 7% rise. That’s particularly bad news for first time buyers trying to save a 20% home deposit while prices just keep rising.
Why are House Prices Increasing?
Put simply, record low mortgage rates (below 2%) have fuelled high demand for property, which has led prices to rise. Even if prices do come down a little in 2022, they’re unlikely to return to what they were in 2020.
With unpredictable factors like the global COVID-19 pandemic and its associated strains, it’s impossible to accurately predict anything, but there are still plenty of affordable housing options in Victoria if you know where to look.
What are some affordable alternatives to traditional housing?
Whether you’re a first home buyer, an investor or just someone looking for a more affordable housing option, a townhome could be the perfect choice for you. So, why are townhomes a great affordable alternative to traditional housing?
With Sienna Homes, you can feel confident in the knowledge that everything you require in your home is included in the one price. There are no hidden extras, it is all included – right down to the letterbox. With the exception of window coverings, there is nothing further you need to add except for your furniture. Of course, you may choose to upgrade items or add in additional comforts, but it is not necessary to do so.
Big Home Features, Small Home Price
Sienna Homes townhomes have all the features of a large family home, on a smaller, easy to maintain block. Our townhomes offer up to four bedrooms, two car garages and open-plan living zones. They also include features like alfresco dining areas, study nooks, powder rooms and lots of storage space. Townhome developments have reduced setbacks, allowing us to design homes that use more of the land that they are built on when compared to traditional homes.
Sienna Homes townhomes are built to maximise light, as well as passive heating and cooling – making them kinder to the environment. The carbon created in the construction of our townhomes is offset through the planting of biodiverse forests throughout Australia and New Zealand, and we recycle 95% of our building waste.
Got your heart set on something bigger?
If you’d prefer to live in a standalone home, a new build in one of Melbourne’s booming growth corridors or a Knock Down Rebuild in your existing area could be for you.
Victorian land developers are conscious of the demand for affordability and one way they’re addressing this is by decreasing lot sizes in Melbourne’s estates. The median lot size for Melbourne in June 2021 was 393sq/m – 27sq/m less than it was just three years ago. These smaller subdivisions mean that more people can buy land for less.
At Sienna Homes we are always reviewing and expanding our home designs to ensure we have a range of affordable family homes to fit almost every block out there. Unlike many other home builders, we can also customise our designs to suit your individual requirements.
Knock Down Rebuild’s have also become an increasingly popular option for homeowners who want more bang for their buck. People soon discover that a knock down rebuild is often the most affordable option when compared to renovating or moving house. Learn more on the reasons to consider a Knock Down Rebuild here.
Camden 42. Source: Sienna Homes.
Ready to make a move?
At Sienna Homes we’re proud to have been awarded over a dozen industry awards including four awards for affordable housing in 2016, 2018, 2020 and 2021. The HIA affordable housing awards recognise excellence in the design and construction of housing developments that incorporate market leading design features at an affordable price for consumers.
Whatever happens to the Melbourne housing market in 2022, there are always cheaper alternatives to buying a traditional home. While many people are getting priced out of more conventional home buying options, Sienna Homes is proud to offer affordable townhomes, house & land packages and new build options across Victoria.
If you’re ready to start your new home journey with Sienna Homes, contact us and get all your questions answered today.