COVID-19: Melbourne’s median property price drops by $30,000

New data shows that Melbourne’s median homeowner lost nearly $30,000 in property worth during the COVID-19 epidemic.
CoreLogic today released their August Home Value Index. CoreLogic noted that Melbourne’s median property worth has fallen by 4.6 per cent over the COVID-19 period.
At the end of April – at the precipice of house prices beginning to tumble – the median value for a Melbourne property (including both houses and units) was $695,761.
This drops Melbourne’s Median House Valuation for August to $667.520. This is a drop of more than $28,000
Between April 30th and August 31st the median property value in Melbourne fell by approximately $230 per day.
The worst hit was Melbourne’s realty prices, but Australia’s property values were mostly protected by the COVID-19 limits.
In August, the median Australian home value fell 0.4% to $552 689
Sydney was the second capital hit in August. The median price of $860 182 was down 0.5%.
Despite rising 1% to a median of $393 386 in august, Sydney remains the most expensive capital while Darwin remains the least expensive.
Brisbane also saw a slight drop in August with a decrease of 0.1% to a median cost of $503,128
CoreLogic’s Head For Research Tim Lawless claimed Melbourne’s performance brought down the national average.
“After a similar fall in July, Melbourne’s home values dropped by 1.2% in August. This is the largest drop among capital cities and shows the severity of a viral epidemic relative to other cities. Lawless also stated that there was a stronger demand side effect of stalled foreign immigration.
“The COVID period is over and Melbourne’s home values are down by 4.6%.”
Lawless stated that it was impossible for the housing market to be separated from societal changes such as social distancing, work from home orders, restricted border, and social distancing.
Mr Lawless stated that “the performance housing markets is intrinsically linked to the extent social ditancing policies and border closures which also affect labour market conditions.” And sentiment.
“It’s not surprising Melbourne is the most vulnerable market for housing due to the effects of the virus epidemic and subsequent restrictions, both which have adversely affected Victoria’s economic performance.”
Due to the lack of foreign buyers and higher demand for necessary work, the housing market in most regions has been protected.
Mr Lawless stated that, unlike their capital-city counterparts that receive 85 percent net overseas migration, most regional markets have escaped the drop of demand that has resulted from the pause.
“Regional market might also be attractive because they have lower density and lower prices.
“The acceptance and normalization remote work could reduce the importance that major cities are in home buying decisions.”

Australia’s Median Property Prices August 2020*

City: Monthly Change: Median Value
Sydney – 0.5 per cent $860,182
Melbourne – 1.2 per cent $667,520
Brisbane – 0.1 per cent $503,128
Adelaide + 0.0 per cent $444,021
Perth + 0.0 per cent $443,777
Hobart + 0.1 per cent $490,743
Darwin + 1.0 per cent $393,386
Canberra + 0.5 per cent $636,324
National – 0.4 per cent $552,689
*Corelogic data, includes both apartments and freestanding homes
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