The median Melbourne homeowner has lost almost $30,000 of value from their property during the COVID-19 pandemic, new data has revealed.
Property research firm CoreLogic today released their Home Value Index for August, noting that during the COVID-19 period Melbourne's median dwelling value had fallen 4.6 per cent.
At the end of April – at the precipice of house prices beginning to tumble – the median value for a Melbourne property (including both houses and units) was $695,761.
READ MORE: Aussie house prices nosedive 2 per cent during COVID-19 pandemic
The drop from this total now brings Melbourne's Median Dwelling Value for August to $667,520, marking a drop of more than $28,000.
That means from April 30 to August 31, the median property price in Melbourne lost around $230 per day.
While Melbourne's property prices suffered the greatest, on a national level Australia's property prices have been largely shielded by the wide-ranging implications of COVID-19 restrictions.
READ MORE: Aussie mortgage holders face 'property glut'
Nationally Australia's median dwelling value dropped 0.4 per cent during August to $552,689.
The other capital to be hurt in August was Sydney, which fell 0.5 per cent to record a median of $860,182.
Sydney remains the most expensive capital city, and Darwin remains the cheapest despite growing 1 per cent in August to a median of $393,386.
Brisbane also registered a marginal loss in August, dropping 0.1 per cent to a median of $503,128.
READ MORE: Australia's median rental prices nosedive during COVID-19 restrictions
CoreLogic's Head of Research Tim Lawless said the performance of Melbourne dragged the national average lower.
"Following a similar decline in July, Melbourne home values fell by 1.2 per cent in August, the largest fall recorded amongst the capital cities, demonstrating the impact of a worse viral outbreak relative to other cities, along with a larger demand side impact from stalled overseas migration," Mr Lawless said.
"Through the COVID period to date, Melbourne home values have fallen by 4.6 per cent."
Mr Lawless said it was impossible to separate the housing market from societal changes such as social distancing, work from home orders and restricted borders.
"The performance of housing markets are intrinsically linked with the extent of social distancing policies and border closures which also have a direct effect on labour market conditions and sentiment," Mr Lawless said.
READ MORE: Homeowners face mortgage hike after coronavirus deferrals
"It's not surprising to see Melbourne as the weakest housing market considering the extent of the virus outbreak, and subsequent restrictions, which have weakened the economic performance of Victoria."
In regional areas, the lack of reliance on overseas buyers and the higher prevalence of essential work means the housing markets have been largely protected.
"Unlike their capital city counterparts, which usually receive 85 per cent of net overseas migration, most regional markets have avoided the drop in demand caused by the pause in migration," Mr Lawless said.
"Regional markets may also be appealing for their relatively low density and lower price points.
"The normalisation of remote work through the pandemic could make proximity to major cities less of a factor in home purchasing decisions."
Australia's Median Property Prices August 2020*
|
City: |
Monthly Change: |
Median Value: |
|
Sydney |
- 0.5 per cent |
$860,182 |
|
Melbourne |
- 1.2 per cent |
$667,520 |
|
Brisbane |
- 0.1 per cent |
$503,128 |
|
Adelaide |
+ 0.0 per cent |
$444,021 |
|
Perth |
+ 0.0 per cent |
$443,777 |
|
Hobart |
+ 0.1 per cent |
$490,743 |
|
Darwin |
+ 1.0 per cent |
$393,386 |
|
Canberra |
+ 0.5 per cent |
$636,324 |
|
National |
- 0.4 per cent |
$552,689 |
*Corelogic data, includes both apartments and freestanding homes
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