Victorian home sellers double or triple their money

“While the average renter stays in a property for less than two years, Australia has the lowest housing turnover rate and the highest home ownership rates, both with a mortgage and outright ownership,” he said.

“If someone owns a nice home in a well-located area of ​​one of our major cities and is willing to hold onto it for a reasonable period of time … then we’re going to see prices go up.”

Jellis Craig’s Port Phillip director Warwick Gardiner agreed that a lack of housing stock in popular suburbs, partly due to long holding periods, had led to soaring prices in areas such as Middle Park, where home sellers made an average profit of $1.24 million.

“It’s almost like a perfect storm,” Mr Gardner said. “You’ve got low stock, older homes and large tracts of land, and when you combine those three you have homes in these two suburbs that are few and far between, and when they do sell, competition is fierce.”

Gardner said, Central Park and Elsternwick have lower apartment prices than neighbouring St Kilda because they have a larger stock of apartments but smaller blocks.

He said many of those downsizing were selling their larger homes to families willing to pay more for larger lots in prime locations.

“I think the buyers knew these homes rarely come on the market … and they took their chances because the next home might not come on the market for another 10 or 20 years,” he said.

“We always say to people buying in these suburbs that it’s almost impossible to overinvest. Even if you pay a little more than you are now, even if you want to sell it in a year or two, you’ll usually make a profit because prices are going up year on year.”

Ray White chief economist Nerida Conisbee said previous homeowners COVID-19 outbreak Those who make the most profit, especially in Bright and Mornington Peninsula holiday destinations.

“Timing is really important. So if you bought 10 years ago you would have made a ton of money because those areas were really cheap, but if you bought two years ago you would have probably lost money,” Ms Conisbee said.

Ms Conisbee said the popularity of tree changes during the pandemic had helped accelerate property growth in coastal and regional areas where prices had previously been more affordable.

“If you look at the Mornington Peninsula, it was very extreme but it has recovered and it hasn’t bounced back,” she said.

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Peninsula areas such as Sorrento, Macrae and Blairgowrie saw home sellers sell for more than double what they paid for them in the past financial year.

Buxton Mornington Peninsula real estate agent Madeline Kennedy said the intergenerational holiday home was one of the homes for sale.

“They were probably built in the 70s or 80s and kids can’t necessarily afford them,” she said.

Kennedy said Somers and Balnarring, on the Westport Bay side of the peninsula, had become increasingly popular in recent years, leading to rising house prices.

“They’ve probably been undervalued for a long time because they’re quieter seaside towns and some people don’t know about them,” she said.

“People move here to get away from the hustle and bustle of Sorrento, Blairgowrie and Rye, but we don’t have the same number of homes as here.”