Melbourne’s property market slowing

Advertisement

Melbourne’s property price growth has slowed materially over the past month, as illustrated by the quarterly growth rate falling from a peak of around 6.2% to around 4.8% currently:

Melbourne dwelling value growth

Deceleration

The most obvious reason for the slowdown is Melbourne’s recent hard lockdown, which no doubt played a part.

That said, the best short-term indicator of Melbourne property value growth is the city’s auction clearance rate, which historically has shown a strong correlation with price growth:

Advertisement
Melbourne auction clearances

Auction clearances typically lead prices.

Melbourne’s final auction clearance rate peaked at 78% in March before sliding to 76% in April and May and then 72% so far in June.

Melbourne’s slowing auction market alone points to slower price growth.

Advertisement
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.