What happened to Melbourne apartment values over July?
The Melbourne apartment market continued to grow over July, with the median apartment value rising 0.4 per cent, according to the property data firm CoreLogic.
That takes the growth in Melbourne's apartment market to 6.1 per cent over 2021, following 0.8 per cent gains over June and 0.7 per cent in May.
Melbourne's median apartment value is now $612,000, having started the year at $577,000.
Rise
The gains in the apartment market come as the booming housing market lost a little bit of steam over July.
CoreLogic's research director, Tim Lawless, suggests one of the reasons house prices are starting to lose a bit of steam is that they are becoming unaffordable for many.
"With dwelling values rising more in a month than incomes are rising in a year, housing is moving out of reach for many members of the community," Lawless says.
"Along with declining home affordability, much of the earlier COVID related fiscal support (particularly fiscal support related to housing) has expired."
There's good news for landlords in Melbourne, Lawless added.
"Rental markets in these areas [Sydney and Melbourne] are stabilising following a substantial reduction in rents due to high vacancy rates attributable to stalled overseas migration and a preference shift away from high density living during the pandemic."
The number of advertised properties for sale has fallen sharply across Sydney and Melbourne amid lockdowns.
New listings in Melbourne dropped 27 per cent between the week ending July 11th and July 25th.
Melbourne's median apartment value is now $612,000, having started the year at $577,000.
“We have seen the same trend through earlier lockdowns, where both buyer activity and vendor activity reduce before recovering to pre-lockdown levels once restrictions are eased or lifted.
“With stock levels remaining tight, selling conditions have been skewed towards vendors.
"Auction clearance rates have remained in the low-to-mid 70% range across the major auction markets through July and private treaty sales continue to record rapid selling times and low discounting rates,” Lawless said