Melbourne Market Strongly Resistant To Pandemic Impacts
Top 5 Melbourne Hotspots
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Melbourne markets have held up better than most against the forces of Covid-19. The number of growth markets has dropped but remains at solid levels – and prices have continued to perform well.
Our Autumn 2020 survey of sales activity found 69 suburbs with rising sales demand, the highest in three years. Our new Winter 2020 survey has identified 32 growth suburbs, so the number has halved, but remains higher than previous surveys since the previous peak in early 2017.
This tells us that the Melbourne market has dropped, thanks to the restrictions imposed for the coronavirus, but remains stronger than during the post-boom downturn phase that extended throughout 2018 and early 2019.
Melbourne has done particularly well with price performance – with houses coming back strongly in the most recent quarter, but with apartments doing better than houses in annual terms.
In the past 12 months, two-thirds of Melbourne suburbs with apartment markets recorded growth in their median unit prices – and most of those growth suburbs increased their median prices by more than 5%.
The data suggests Melbourne markets have been resilient price-wise in the Covid-19 period, despite the fall in sales activity which is reflected in our Winter 2020 survey of sales volumes across Melbourne.
In the circumstances, a result of 32 suburbs with growing sales activity is a solid performance and is better than all the quarterly surveys of 2018 and 2019, when the Melbourne market was having its post-boom correction.
Discover the locations that are proving most resilient in the new edition of Top 5 Melbourne Hotspots 2020.