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.”
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 that’s going to happen even more so this weekend with what’s 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. We’ve gone through the process, we know what needs to be done. And if people are willing, we know that we’ve got the ability to do it, and we know that whether you’re doing Zoom or whether you’re doing online auctions or whether you’re 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.
“It’s pretty much a shrug of the shoulders going, we’ve ended up where we haven’t and we didn’t want to end up. It’s like a bit of a two steps forward, one step backward,” Mr Tarrant said.