Many find understanding the trends and reasons for the peaks and troughs in the housing market to be perplexing. We also share this view, however we found the snapshot of the current Melbourne property market and migration rate provided in this recent article titled ‘Melbourne Housing Market Insights: July 2021’, published in The Urban Developer really interesting and insightful and well worth the read.
The article identifies that current Melbourne housing prices are 5.3 percent higher than in March 2020 (pre-COVID) which we find staggering given this period has been hampered by multiple COVID lockdowns which have impacted so many. Maybe the money people are saving by not travelling overseas or interstate, they are funnelling into a new home?
We also found the statistic regarding the Melbourne rental market very interesting, particularly that Melbourne (Australia’s second largest city) is one of the two cheapest capital cities regarding the cost of renting a property. Melbourne rent prices are on par with Adelaide – a place that likes to consider itself as a big country town.
Of most relevance to our business is the information regarding building approvals and in a year where there have not been many positives, particularly as a Victorian, it was positive to learn that Victoria was one of only two places in the country (Tasmania the other) to see a rise in building approvals for dwellings (up 3.2 percent) in the last quarter.
The final statistic identified, which we find the most concerning, is the decline in Victoria and Melbourne's population in the December 2020 quarter. Victoria wide the drop was 6536 and for Greater Melbourne, there was a net loss of 8500. This is the most significant net migration decline for Victoria since March 1994 and for Greater Melbourne, the net loss is the highest recorded since the ABS began recording this statistic in 2001.
We look forward to seeing the next update and hopefully more Melbournians are coming in than going out!
https://www.theurbandeveloper.com/articles/melbourne-housing-market-update
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