Report Reveals Victoria’s Lockdown Losers, Winners

A new report has revealed the biggest winners and losers of Covid lockdowns in Melbourne with some suburbs and sectors getting better outcomes than others.

In Stonnington the median annual rent increased 5.6 per cent, according to the inaugural Renting in Victoria Snapshot 2020.

The other top five performing metropolitan areas are Maribyrnong up 5 per cent, Boroondara 4.4 per cent, Mornington Peninsula 3.9 per cent and the Yarra Ranges 2.6 per cent.

The residential property market had mixed results across the board with CBD vacancy at an all-time high of 10.8 per cent while demand is building in the outer suburbs.

Following months of lockdowns normality is starting to return to the property market.

On Sunday, premier Andrews announced an easing of restrictions on outdoor auctions which now can accommodate up to 10 people plus staff.

The number of auctions has already picked up in the area on the weekend with 188 homes under the hammer at a clearance rate of 65 per cent up from 59 per cent the previous week, according to Corelogic.

The biggest winners in the property market by far this year have been regional areas, with rent and occupancy rates moving up.

Change in median rent

_{^{^ Source: Renting in Victoria: Snapshot 2020; percentage change Sept 2018-2019}}

The top five median rent increases in regional Victoria are Benalla up 15.4 per cent, Northern Grampians 15.2 per cent, Southern Grampians 13.0 per cent, Moyne 12.5 per cent and Indigo 12.3 per cent according to the snapshot.

Related: Working from Home Will Reshape Apartment Projects

Losers still have some way to go

Retail, hospitality and the office sector still have some way to go before things return to normal, with restrictions to ease at midnight on 1 November.

At this point all remaining retail will open, restaurants, cafes and pubs will open along with beauty services.

The office sector will have to wait until the state achieves Covid-normal or when there are no new cases for 28 days.

Under current restrictions all activities that can be done at home must be, and staff will be encouraged to continue to work from home even if all restrictions are eased.

The lockdown has impacted workplace occupancy which is 90 per cent lower in the CBD compared to last year.

Premier Daniel Andrews said if the state continues to track well, they may be in a position to ease more restrictions sooner.

“I know these changes can’t be absolutely everything everyone wants but they are the steps we can safely take that will make life a little bit easier,” Andrews said.

“Back in August and at our peak, we reported 725 daily cases. At the same time, the UK recorded 891.

“As Victoria records two new cases, the UK hit 16,171. And as we continue easing our restrictions—they are being forced to increase theirs.”

“We have come too far, sacrificed too much, to give up now.”

In England restrictions are based around locally determined alert levels—medium, high and very high—and how businesses can operate depending on the rate of infection.

On the weekend global accounting firm Deloitte announced its plans to shut down four of its 50 British offices, shifting employees to work from home.