What have been some highlights for MGP Property from 2021?
2021 was a wild year for us at MGP. Not only did we open the new Applecross office, we also managed to build some great relationships in the community including our work with Melville Mums, our sponsorship of Kids are Kids!, and the numerous local businesses we worked with over the year. We also created an intern program with Curtin University, and we had a number of record sales during the year.
I think more importantly though, we’ve started making a dent in our objective to redefine the way local real estate agents service their clients and the local community. This was our main objective when we started – we really wanted to set a new bar for real estate agents. The feedback from those that we have worked with last year was very pleasing to hear – it confirmed that we are on the right track.
We also gave away nearly $10k worth of prizes throughout the year, which is probably unheard of for a new real estate agency. What can I say – we like giving stuff away for free and I’m certain everyone else likes it too!
How did the local property market fare through 2021?
It was a bumper year for prices right across the City of Melville. The City of Melville region started with a Median House Price of $775k in January 2021 and that reached a Median Price of $850k by October 2021. We’re still waiting for November and December’s data to be confirmed, but, even to October, it was already around a 10% price growth, even after the strong growth through 2020 as well.
Several City of Melville suburbs were also top performers throughout the year. Of note, Bicton recorded 40% annual growth in prices, and Booragoon and Willagee both achieved over 20% growth. They were among plenty of other strong performers as well.
We also saw increasing sales volumes with 2,573 sales across the City of Melville in 2021. This was up from 2,130 in 2020 and 1,800 in 2019. Much of that volume was weighted to the more affluent suburbs such as Applecross, Mount Pleasant, Bicton and Attadale, all with around 200 sales or above, although Kardinya, Melville and Palmyra also achieved pretty strong volumes.
All in all, it was a well overdue year for the local property market and it’s really good to see this trend continuing from 2020. All we need now is a little more stock to hit the market so the buyers out there have more to choose from.
What are the predicted market conditions for 2022?
It’s so difficult to predict what will happen this year with any sort of certainty when there are so many variables at play, but let’s have a little look at things as they are now. We entered the year with low levels of stock for sale and for rent – almost identical to what we saw at the start of 2021. So this certainly sets the scene for more price growth this year. There’s a good chance that interest rates will rise at some point this year but overall, I don’t think that will be enough to deter price growth given the apparent imbalance between supply and demand and the probability of population relocating to WA from the eastern states.
Clearly, the borders will stay shut a little while longer, but I think the writing is on the wall for the State Government to open the borders 3 or 4 months after that initial date of 5th February to coincide with the waiting period for booster shots. Once open, there will be a whole new wave of demand, but it will be from buyers that aren’t sellers. So, watch out for more competition and more pressure on prices if this happens.
I don’t think we will get much relief in stock levels until we see some sort of narrative change across the news and social media. If everyone decided to just put their homes up for sale, then there would be plenty of stock to choose from. However, we all see the news and hear the stories of lines around the block at home opens, multiple offers to compete with, homes selling before the home opens, and so on. This means people are a little more hesitant to list as they’re afraid they won’t be able to find anything to buy. It’s a bit of a chicken and egg thing.
To sum up my view, I think stock levels remain largely the same as 2021 and we also continue to get price growth this year, albeit at a more sustainable level around the 10% mark. There are plenty of strong indicators for growth beyond 2023 but let’s wait and see how 2022 plays out before we start looking beyond. Population growth on a state level, and all the things that drive that (think jobs and mining) will be a huge factor in what happens to the local property market this year and next.
What’s coming up for MGP Property in 2022?
There is so much on the horizon for us, I really don’t know where to begin. From a business perspective, we will continue to focus on that core objective of setting a new bar for the industry as it’s just so overdue in my opinion. So there will be lots of branding and messaging from us this year. Of course, we will continue giving things away – I feel like this will become something we are known for, so I don’t want to let anyone down. We are also expecting to get out more in the community too. We have another community sponsorship lined up for 2022 but I’m staying tight lipped on this one for now.
In the office, we are building on our team this year and right now we are on the lookout for a marketing coordinator to help us continue to build our brand. If you hear of anyone, please send them my way!
Oh! And last but certainly not least, here’s a big one. My beautiful partner Aimee and I are due to welcome our first baby at the end of July. I can’t believe I’m actually saying this out loud, but I’m going to be a Dad! We are both excited (and just a little nervous too) but are looking forward to meeting our baby, and Aimee is looking forward to becoming part of the Melville Mums community.
If you want to have chat with James about selling your home subject to buying your next home, he is happy to help. He is best contactable via email at james@mgpproperty.com.au or on 0447 120 125.
