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'Perfect storm' market to boost Knox home prices

Home buyers
28 January 2021
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The ingredients are all in place for Knox home prices to rise to peak-2017 levels.

Two suburbs popular among buyers – Wantirna and Wantirna South – are expected to perform strongly in 2021, according to Barry Plant Wantirna Director, Brendan Murphy.

“The market in these suburbs is red hot due to a shortage of property for sale, record low interest rates and strong demand to live in the area… it really is the perfect storm,” he noted.

“We expect prices to rise up to peak-2017 levels as long as the pandemic remains under control.”

On supply, statistics have shown listings have decreased by as much as 25-30 per cent from late 2017, Mr Murphy said.

“Homeowners have been sitting back and waiting for confidence to return to the market.

But as they see the market is now in good shape and prices are rising, they will return and start listing again,” he added.

Meanwhile, buyer demand for the outer-east suburbs remains strong with a wide range of buyers, from first- and second-home buyers to investors active again.

“There are many buyers looking for real estate opportunities,” Mr Murphy said. 

He also cited the strong prices seen at auction sales. “There is an emotional aspect to auctions that can deliver 10-15 per cent above what the past sales suggest a property maybe worth,” he added.

Barry Plant Wantirna recently conducted a keenly contested auction with eight registered bidders leading to a windfall result for the vendors. The two-bedroom house on 719sqm at 41 Harmsworth Ave, Wantirna, fetched close to $1 million or more than double the original purchase price. It sold for $968,000 with records showing the property was purchased in 2008 for $432,550.

The January 23 auction had two buyers fighting it out at the end, selling agent Brendan Murphy said.

It netted the vendors $158,000 above their reserve with the price guide at $750,000-$825,000.

“It was an amazing result for a two-bedroom home of more than 40 years and it was really just a block of land with the potential of panoramic views,” Mr Murphy said.

Home buyers
28 January 2021
Save Article

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