The pandemic not only led to a sharp acceleration in pricing in the Melbourne market , but also to a dramatic change in population distribution . Not only was there record movement of people out of Melbourne into regional areas but the city saw the highest level of migration up to South-East Queensland since the early 1990s recession . Many outer suburban areas saw much stronger price growth than premium inner areas . Expensive suburbs like Armadale and Hawthorn East dropped in value , while areas on the fringe with large blocks of land like Diamond Creek and Gembrook saw well over 20 per cent growth .
The end of lockdowns late last year marked a turning point for the Melbourne market . More stock for sale is calming conditions . And while it remains uncertain whether we ’ ll have an interest rate increase , a growing realisation that rates may rise sooner than 2024 is also stabilising price growth . The biggest change in the Melbourne market will be the impact of open international borders and a return of vibrancy to Melbourne CBD . Both of these will revitalise unit markets , as well as again making inner urban living desirable . Watch out for the strong return of premium markets , as well as rental growth starting up again in locations such as Melbourne CBD and Southbank .
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