After a tumultuous year marked by uncertainty, things are starting to look up for Victoria’s housing market, with CoreLogic’s head of research Cameron Kusher reported as saying “the worst is over”. The RBA has rolled out not one, but two rates cuts that together have brought interest rates to record lows of just 1%. After a nail biting election, the Scott Morison’s liberal government has managed to win a majority government, putting fears of the abolishment of negative gearing and changes to capital gains tax to rest. With the path ahead clear and interest rates lower than ever, all signs point to confidence in the property market being renewed.

As the new financial year rolled around, property prices in Sydney and Melbourne saw rises for the first time since late 2017.  In late June, Melbourne auctions clocked up the best clearance rates since early 2018. Buyer confidence is growing, and with comparatively few properties available, this in turn is pushing up profits for vendors who may not have seem the same results only a few months earlier. However, as property developers feel a concurrent squeeze and as new developments find themselves tainted by bad publicity, there is some uncertainty as to whether market supply will be able to keep up with demand.

Cressida Wall, the Victorian executive director of the Property Council of Australia echoed a similar sentiment in late 2018, emphasising the importance of ongoing planning and infrastructure to accommodate demand that will only continue to grow, especially in major cities like Melbourne. More recently, Wall again raised the need for the state government to look at long term action to address housing supply, especially now with markets conditions being ideal for buyers looking to get a foot onto the ladder.