Yes, 2020 has been a year of uncertainty and unprecedented times for all of us. The flow-on effect of the global pandemic has spread far and wide. So where has that left the Melbourne property market? Well, interestingly the housing market in Melbourne has been surprisingly resilient. While the apartment market can not boast the same resilience, unfortunately.
As many people may not know, the international student economy is the fourth largest economy in Australia. Many of the high rise apartments that we see in the city have been filled by international students who pay a premium to live in the heart of the city right next to the universities and the amazing array of amenities that Melbourne has to offer. Due to the pandemic, this market has temporarily evaporated, as the universities have deferred courses online which allows students to study from there respective countries, which in turn leads to a huge drop in demand for apartments in the CBD.
International Students:
One other important factor which is affecting the CBD apartment market is the lack of international tourists, many of the apartments that weren't filled by students where filled by tourists but with the borders closed it doesn't look like they will be back anytime soon.
It is not all bad news though:
Due to the drop in demand the rents in the CBD have dropped dramatically, and living in an apartment in the heart of the CBD has never been more affordable! We are seeing a large shift of Australian residents moving into the CBD, who previously would have dismissed the notion as too expensive, well not anymore. Soon shops and restaurants will be reopened and Melbourne will unveil its new and exciting alfresco dining around the streets of the CBD to revitalize the city while being responsibly and allowing social distancing. It is going to be a great summer!
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