Melbourne Property News Monthly Wrap – November 2022

Positive signs in November as market stabilises

Over November’s four weekends the Real Estate Institute of Victoria (REIV) recorded more than 2,966 auctions. 1,654 properties sold. 1,229 at auction, with 798 passed in. 422 properties were sold before auction & 3 properties were sold after auction. The clearance rate averaged 68%, down on October’s 70%.

Calmer waters ahead

With the State election over the Melbourne property market will continue to settlie, despite some incremental interest rate rises on the horizon. 

According to property valuers PropTrack, falling Melbourne values slowed to a stop across October, and actually showed positive growth just above the flatline, at +0.02%. The increasing stability encourages home buyers, which is good news for home sellers! 

Over the last couple of years instead of quiet Januarys, expectant buyers have been returning quickly to the market right after the Christmas/NewYear break. Now is the time to prepare for a successful January sale! 

Steeper rents on the way

Investment data group SQM Research and other market analysts are forecasting steep residential rent rises across Melbourne in the coming year with students, migrants, tourists and international workers continuing to filter back to the city. SQM is predicting a rent hike of about 13% over 2023, which would send Melbourne’s average $465 weekly house rent to $525 per week. Good news for investors, less so for renters.

The true cost of Victoria’s lockdowns

Domain Chief of Research and Economics Dr. Nicola Powell has confirmed just how costly to homeowners the lockdowns were. There was a major exodus of Melbourne owners, renters and buyers, who rushed away, interstate or to the regions to escape the State Government’s drastic Covid regulations. The lockdowns and curfews drove 60,500 people out of Melbourne during 2020/2021, ABS figures show. This is over 10 times more than Sydney, where 5150 people left. The flight from Melbourne dampened home value growth. Although it did rise by 24.1% the other East Coast city values lifted twice as much in the same period – by 40.2% in Sydney and by 41.2% in Brisbane. Melbourne missed this bus. 

Craig Knudsen
Principal Advisor
Vendor Marketing

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