PHOTO: Pictured: Melbourne on September 11. Buyers have been cautioned about a glut of units but well-located detached houses are considered ‘growth potential’ by two property experts
- Melbourne prices down 4.6 per cent since pandemic started, still falling
- Analyst says Preston, Kew East, Malvern East, Ashwood, East Geelong may rise
- ‘Pandemic will pass: buy as soon as possible. Houses not units’ says analyst
- But economist Martin North has warned: ‘Don’t try to catch a falling knife’
Melbourne’s residential real estate price plunge may have created a unique buying opportunity, some experts say.
Border restrictions and coronavirus lockdowns have stopped people moving to Melbourne via immigration or relocation, reducing demand for Melbourne property.
With unemployment rising, the housing market has been falling and Melbourne auction clearance rates are at zero due to lockdowns.
According to CoreLogic, Melbourne home prices fell by 1.2 per cent in August, the largest fall recorded in the nation’s capital cities, and 4.6 per cent since the pandemic first hit the property market in April.
CoreLogic’s head of research, Tim Lawless said Melbourne’s price falls were largely due to a demand decrease caused by a halt in migration.
By contrast, regional markets avoided the drop in demand caused by the pause in the influx of migrants, he said, in CoreLogic’s Hedonic Index report on September 1.
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