June 2021: How did Melbourne apartment values perform over May?

Melbourne apartment values soared past the $600,000 median over May after 0.8 per cent value growth, the monthly Hedonic Home Value Index from property data firm CoreLogic found.

The continued growth follows one per cent gains over April and 2.1 per cent in March.

The solid May performance takes the quarterly apartment gains across the Victorian capital to 3.6 per cent and the median apartment price to $605,000, well up from the $577,000 median at the start of 2021.

Apartment values in the Victorian capital have been rising since October, according to CoreLogic's data.

CoreLogic's Head of Residential Research Tim Lawless reaffirmed the fundamentals driving strength in the housing market remain in place.

“The combination of improving economic conditions and low interest rates is continuing to support consumer confidence which, in turn has created persistently strong demand for housing.

"At the same time, advertised supply remains well below average.

"This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices."

Melbourne is the only capital where total listing numbers are now higher than the five-year average.  Unit listings were up over 29 per cent over the past year.

Despite the increase in newly advertised residential properties across the country, sales activity has also increased. CoreLogic estimates sales activity over the three months to May was tracking about 37% higher than the five-year average.

“The sales to new listings ratio remains around 1.1, meaning for every new listing there is more than one sale occurring,” Lawless said,

“This rapid rate of absorption is keeping advertised inventory levels extremely low, despite the rise in new listings. As a consequence, vendors remain in a strong selling position while buyers have a weak
position at the negotiation table.”