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How will the latest lockdowns impact Melbourne’s property market?

07 July 2020 Cameron Micallef
Melbourne

Melbourne’s property market is currently experiencing the largest decline out of Australia’s capitals, with fears that new lockdown laws could impact the market further.

Numbers released in June by CoreLogic show that Melbourne has fallen by almost three times as much as Sydney, falling by 2.3 per cent. 

“The results may be surprising, particularly when considering that the Sydney growth rate, which often moves quite closely with Melbourne property, was less than half this rate in the same period (at -0.8 [of a percentage point]),” CoreLogic’s head of research, Eliza Owen, said.

“Data suggests that the Melbourne market has experienced a turn in its market before others. This was evident in the most recent upswing, where Sydney and Melbourne saw peak growth rates around November 2019, while other capital cities continued to see a more moderate but accelerating growth rate.”

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During a recent episode of REB’s What’s Making Headlines, hosts Tom Panos and Phil Tarrant explained the implications for agents and investors.

“I’ve already had clients tell me that they’ve already seen some numbers impacted by inquiry, people travelling to open in those suburbs, and I suggest that thats going to happen even more so this weekend with whats happened,” Mr Panos said. 

While highlighting the importance of staying safe during the health crisis, Mr Panos noted the industry has been through this before.

“The great thing is, that we now have experience. Weve gone through the process, we know what needs to be done. And if people are willing, we know that weve got the ability to do it, and we know that whether youre doing Zoom or whether youre doing online auctions or whether youre doing stuff with inspections,” Mr Panos said.

Mr Tarrant noted that due to this happening before, investors and agents are not panicking this time around.

“Its pretty much a shrug of the shoulders going, weve ended up where we havent and we didnt want to end up. Its like a bit of a two steps forward, one step backward,” Mr Tarrant said.

How will the latest lockdowns impact Melbourne’s property market?
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