Melbourne property values reach record high
After months of lagging behind other capital cities, Melbourne has finally regained its footing, with values rebounding following a prolonged period of COVID-induced losses and ultimately surpassing previous records.
Following a decline of 6.1 per cent as a result of the pandemic, Melbourne dwelling values have grown by 6.7 per cent – officially breaching the previous peak recorded in April 2020 by 0.2 per cent, CoreLogic’s latest daily hedonic home value index has revealed.
This brings the capital city’s dwelling values to 13.8 per cent above the dip recorded in mid-2019.
“It had only been a matter of time before the recent strong capital gains in housing values led Australia’s second largest city to move to new record highs,” according to CoreLogic’s executive research director, Tim Lawless.
Moreover, Melbourne’s median value for all dwellings currently sits at $736,478.
The Victorian capital looks to be following in Sydney’s footsteps, where property values reached an all-time high and ultimately broke the record set back in 2017.
Looking ahead, CoreLogic estimates that Melbourne’s price momentum will be skewed towards the upside, with low rates, improving economic conditions and consumer confidence, low supply and high consumer demand tipped to outweigh the headwinds.
In fact, ANZ recently predicted a 16 per cent growth in prices for Melbourne.
However, the big four bank noted that strong growth could slow down by June.
“The first half of 2021 is likely to be stronger than the second half. By June, we expect prices to be rising at a more moderate pace given the end of government programs like JobKeeper and HomeBuilder, and a lift in fixed mortgage rates,” ANZ’s senior economist Felicity Emmett said.
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