27th July 2020: Victorian Property Market Holds Firm in the Face of COVID-19

Brought to you by REIV- Andrew Kilmartin

REIV President Leah Calnan says the Victorian property market has displayed true strength in holding firm against all predictions regarding the impact of Covid-19.

The latest Quarterly median prices released by the Real Estate Institute of Victoria show that the market is still strong. While there has been a small adjustment from the previous quarter, the market is in much better shape than it was in 2019 across all property types.

House values in Metropolitan Melbourne fell by just 3.5 per cent over the June quarter, following four quarters of continuous growth. With a median price of $864,000 houses in metropolitan Melbourne are still 6.1 per cent more valuable than they were at this time last year. Houses in Middle Melbourne recorded an astonishing 9.4 per cent increase since June 2019.

Units in Melbourne have recorded a quarterly median price of $621,000, just 2.5 per cent lower than the previous quarter having grown by 6.4 per cent over the past 12 months.

House values in Regional Victoria have held steady with the quarterly median house price at $420,000 up by 0.1 per cent over the past quarter and a healthy 3.7 per cent annual growth.

Regional units have shown tremendous growth of 13.6 per cent over the past quarter, the median unit price for regional Victoria of $339,000, setting a new quarterly record.

The underlying strength of the Victorian market is evident as prices have stayed firm despite volume of sales transactions significantly reduced due to the restrictions imposed by the pandemic. 29 per cent fewer properties sold in Victoria for the June 2020 quarter when compared to June 2019 quarter.

New records have also been set for houses and units sold by private treaty. Houses sold by this method are up by 7.6 per cent and unit sale prices have grown by 3.4 per cent over the quarter.

REIV President Leah Calnan said the figures have confirmed the feedback that we are receiving from our membership.

"2020 has presented challenges in every respect and these results should provide a great source of confidence for all Victorians." Ms Calnan said.

"Many pundits predicted doom and gloom amid crashes for Victorian Property prices and that just hasn't happened. Despite Covid-19, our market is stronger than 2019."

"Prices haven't tumbled. Any home up for sale in Victoria is swamped with interest from buyers."

"The REIV June Quarterly results are great reading, these are good prices, our market is resilient, and we can move ahead with confidence."

"Prices have held despite transaction volumes being down, and these are historically unprecedented times."

"The great appetite for Victorian property continues. People from all over the place still want to buy a slice of Victoria. We need more homes being listed to keep up with this strong demand."

"There has never been a better time to sell your home. With fewer properties up for sale demand is outweighing supply and is delivering great prices."

"The real estate sector has responded to these difficult times with agility and innovation, ensuring that people can continue to find their dream home."