Melbourne’s unique situation in the year of the pandemic has delivered a markedly different outcome to many other locations.
The second wave lockdowns and restrictions have meant that the Melbourne market has had to deal with difficulties that other cities and regions have not experienced.
But, despite everything, the Melbourne market has managed to get through to December without any major damage to prices or consumer sentiment.
The latest price data from CoreLogic suggests that in the 12 months to the start of December, the median unit price has risen marginally – 0.4% – and the median house price is down slightly, just 1.5%.
But the latest figures out this week from SQM Research suggest that houses have risen 1.8% in the past 12 months and units have increased 4.5%.
Those are remarkably strong statistics for a market that has experienced all that has afflicted Melbourne in 2020.
So, against that backdrop, I’m expecting a strong performance from Melbourne markets in 2021.
We’ve already seen, in the short time since the restrictions were lifted by the State Government, evidence of busy activity in property markets and some strong sales.
So, as we contemplate what might happen in Melbourne in the New Year, where should investors be buying?
To answer that question, this week we have published our new Top 5 Melbourne Hotspots report, to provide our best insights into what to expect in 2021 and where best to focus your attention.
I think Australia will experience a national real estate boom in 2021 and Melbourne will be part of it.