Melbourne apartment values outperform houses in November: CoreLogic

The apartment market in Melbourne has remained relatively strong throughout the COVID-19 pandemic, and even outperformed houses in November, according to figures released by property data firm CoreLogic.

Their National Home Value Index for November saw apartments record 0.7 per cent value growth, compared to the 0.6 per cent growth in houses.

CoreLogic's Head of Research Tim Lawless said the result was a surprise. “The resilience in Melbourne unit values is surprising given the high supply levels across inner city areas and the sharp decline in rental conditions," Lawless said.

Melbourne unit values fell by -0.8 per cent in back to back months from August, but bounced back in October with 0.1 per cent gains.

Lawless suggests the unit market outperforming the housing market may be short-lived unless overseas migrations turns around sooner than expected, which in turn would help to shore up rental tenancy demand.

Melbourne’s unit values have recorded a smaller than expected decline throughout the COVID period to-date and a more substantial recovery trend over recent months.

Apartment values in Melbourne are now 0.1 per cent higher over the quarter, compared to Melbourne's housing market which is -0.6 down over the last three months. Over 2020, Melbourne's apartment values are only down 0.5 per cent to a median value of $568,000.