Theresa Worrell: Melbourne Housing Market Update [video]

Melbourne’s housing market saw the pace of growth lift by half a percentage point between April and May, with values up 1.8% from last month.

This takes the three-month gain to 5.5%.

The impact of the extended lockdown last year is still weighing on the annual returns for Melbourne, with housing values up a relatively small 5.0% over the past year, which is the lowest annual capital gain of any other capital city.

The relatively low annual return is a symptom of the 5.6% drop in values recorded through the worst of the COVID period last year.

Like most capital cities, Melbourne’s unit market has recorded a lower rate of growth relative to houses.

With Melbourne moving through another temporary lockdown at the time of filming, we don’t anticipate this will have a material impact on housing market conditions unless the lockdown is ongoing.

The housing market has been resilient to shorter ‘circuit-breaker’ style lockdowns in recent months.

If COVID cases can be quickly traced and contained, we don’t expect another slump in Melbourne housing market conditions.

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