Properties in Tarneit are being swooped up in less than two weeks, compared to the early 2000s when they sat on the shelf for an average of 100 days.
A mental shift could be one of the main drivers for this booming property market, according to Barry Plant Tarneit director Rick O’Halloran.
“People aren’t as fearful anymore, and since Covid everyone has reassessed what they want and they are acting on it,” he said.
“We are seeing a very active market, with legitimate buyers and people aren’t holding back.”
Mr O’Halloran said Tarneit is a suburb of new estates and it was difficult in the past to see some real capital growth, “until now”.
“The suburb is now receiving recognition for its seasoned estates, it has developed its own repertoire with established pockets, better schools and larger shopping facilities,” he said.
Mr O’Halloran recently broke Tarneit’s property sale record with an eye-watering $1.337 million off-market sale.
The sprawling 65 square custom-built home, sits on a quarter of an acre. A property two doors down sold in 2014 for $800,000.
“Results like this give a really good insight into what’s happened to our suburb,” Mr O’Halloran said.
Tarneit has seen an annual price rise of 9.6 per cent to a $581,000 median, according to the Real Estate Institute of Victoria data.
“It’s very hard to provide an accurate median price for the area because of the number of land sales, but it is hard to find something for under $650,000,” he said.
After 20 years in the industry, the long-standing Barry Plant agent said he started his career just as the suburb was first subdivided.
“In two decades, the suburb has come a long way, it now not only offers growth, but it has its own identity,” Mr O’Halloran said.
Properties aren’t lasting more than 14 days on the shelf, according to Barry Plant Tarneit sales agent and auctioneer Moufid Elhaouli.
“The market is pretty hot at the moment, and they are disappearing within two weeks,” he said.
“Most of the time we are exceeding buyers’ expectations and receiving multiple offers.”
A 5-6 per cent increase in house prices in the surrounding suburbs are expected over the next six months, Mr Elhaouli predicted.
“Prices will continue to rise if property stock remains low, we are seeing big shortages, so it goes back to the basic principles of supply and demand,” he said.
Mr Elhaouli said first-home buyers are dominating the market.
“Low interest rates coupled with the first-home buyer incentives has definitely helped a lot of young people get a foot on the property ladder,” he said.
“If you look at the rental market, there are quite a few vacant properties, renters have saved their deposits during lockdowns and are now in a position to buy.”