Melbourne Property Prices Outlook - 2020 Feb

Updated: Mar 16, 2020


With the Coronavirus (a.k.a COVID-19) hogging the news in recent months, we've been asked many times, for our opinion on how this virus is going to affect property prices here in Melbourne.


First, let's look at the property clearance rates for the last 4 weeks, and the outlook for the next 3 months.


After the traditional Christmas break, buyers are flocking back to the Melbourne market. This is reflected in the Auction clearance rates, which has remained high at around 80%. This suggests strong demand for properties in the market.


Is this going to last? This is the answer everyone wants to know.


Buyer sentiment is the biggest determinant factor. And over the next 3 months, that is going to be affected by, no surprises, the COVID-19 virus.


COVID-19

As of now, symptoms are rather mild, like a bad flu. Death rates outside of China is less than 0.2%, which is similar to flu. However, it is FEAR that is driving people into irrational behaviours. It is a very new virus. It is similar to the SARS and MERS viruses, but different enough to cause fear. The death rates are relatively low, compared to SARS (10%) and MERS (35%).


How is that going to affect the property market in Melbourne?