Latecomer Melbourne has finally joined the property party with its median home price reaching a record.
CoreLogic revealed that Melbourne dwelling values have breached the previous peak set in April, 2020, by just 0.2 per cent.
Melbourne has been hardest hit of any Australian city or region by COVID-19, with extended lockdowns impacting on daily life, including property sales.
Melbourne’s home market recovered quickly once lockdowns ended
However, Tim Lawless, CoreLogic’s executive research director, said Melbourne’s home market recovered quickly once lockdowns ended and had been on a roll this year.
“It was only a matter of time before the recent strong gains in housing values led Australia’s second largest city to move to new record highs,” Mr Lawless said.
Melbourne now joins Sydney, Brisbane, Canberra, Adelaide and Hobart in record price territory.
“Following a decline of 6.1 per cent through COVID-19, values have since grown by 6.7 per cent and are now sitting 0.2 per cent above their recent high record on April 6, 2020,” Mr Lawless said.
He added that Melbourne’s dwelling values have increased 13.8 per cent since bottoming out in mid-2019.
The median price across houses and units in Melbourne is now $736,478.
Property prices have been growing across Australia through 2021, with major markets moving in tandem.
High Auction Conversion Rate
Last week, 3800 properties were taken to market with 84 per cent sold.
Auction conversion rates have been steadily increasing due to a mismatch between low supply and high demand.
More supply is expected to come on to the national property markets over the next six weeks. However, industry leaders such as Dan White, managing director of Ray White Group, believe prices will continue to rise.
Source: Financial Review