Melbourne units outperform houses over March: CoreLogic
Melbourne units saw more growth than houses across the Victorian capital over the month of March, CoreLogic's most recent Home Value Index found.
Unit values rose 0.2 per cent Melbourne-wide, compare to the -0.2 per cent value losses across the housing market.
Since the start of the year, unit values are down -0.2 per cent, however, a sign of the market bouncing back in the city and its surrounds, unit values in the City of Melbourne LGA are up 8.6 per cent in the last six months.
Melbourne unit rents are up 6.9 per cent over the past year, after posting a peak to trough fall of 8.5 per cent.
Through the pandemic to-date, house rents in capital's have risen by 13.8 per cent, compared with a 3.4 per cent rise in unit values nationally.
CoreLogic's Research Director, Tim Lawless, says the net result is that renting a unit is substantially more affordable than renting a house.
"This affordability advantage, along with a gradual return of overseas migration, employees progressively returning to offices and inner city precincts regaining some vibrancy, are likely key factors pushing unit rents higher,” Lawless said.
There's further growth anticipated for the Melbourne unit market.
"In the lead-up to the federal election, both major political parties have already announced additional support for first home buyers in the form of an extension to low deposit home loan guarantees," Lawless added.
"Historically, first home buyers have reacted positively to stimulus measures.
"A return of migration will also impact the change, with higher overseas migration a net positive for housing demand.
"The most immediate flow through is likely to be seen in higher rental demand which could incentivise investors and, in the longer term, flow through to purchasing demand from permanent migrants."