According to CoreLogic, Melbourne’s new listing volume is 151.9% higher than the same period last year, but the increase of total listings is only 25.2%. It shows that the market is absorbing the stock rapidly across the city and regions.
This strong demand occurring alongside persistently low advertised supply levels is only adding fuel to the flames.
This is clearly reflected in the auction clearance rates across Melbourne, which after dropping below 40% during lockdowns, is now back consistently within the 70%-80% range, indicating the market is performing incredibly well.
Although the median days to sell a Melbourne property is 32 days this September, up from 23 days in the last year, this is expected to shift now that the market is open again, and purchasers can more easily inspect properties, and move forward with confidence. Also of importance, the vacancy rate has dropped from the peak of 4.7% (Dec 2020) to 3.5% in September 2021. With migration set to return in 2022, this vacancy rate is expected to return to pre-COVID levels swiftly, which will attract more investors into the market from across the country and internationally too.
Ironfish Head of Property, William Mitchell, says, ‘It’s remarkable that the Melbourne market has performed so resiliently, even with severe restrictions on inspections and sales activity.
“We expect to see pent-up demand continuing to drive growth in the market over the short term, however purchasers will need to become increasingly selective, as the threat of rising interest rates and further potential macro-prudential changes will impact growth in some areas more so than others.”